Great points above on the contracts. On the tech side, the ultimate switching cost is 'Data Liquidity.' If the customer can't easily export their historical project data via API, the switching cost is effectively infinite (a Technical Moat). If it's a simple CSV export, your churn risk is much higher. Sent you a note on how to audit that 'Data Trap'.

^redacted‌ hi, Haven’t acquired but I already own a SaaS company. Client concentration is a real risk, but it is mitigated with high switching costs; I think you should simply look at the client contracts and review, per customer, 1) the lengths of the Term, 2) the remainder of the Term, 3) the Termination conditions, and 4) all the effects of Change of Control. If i) most of the revenue is protected by at least 18 months, ii) the Termination is protected by maintaining reasonable SLAs, and iii) Change of Control does not give a “bail-out” card to the clients, then it starts to sound comfortable. Also - I’d ask to speak with the critical clients’ managements as part of the due diligence, perhaps bring up some innovations that you plan to bring with your leadership, and see the responses. Finally - not everyone will agree with me, but I think taking this opportunity to accept equity investments from the key clients can help you derisk the situation.