Looking at a paper product manufacturer where the primary customers are distributors and the top 3 represent ~50% of sales. Do the traditional thresholds for customer concentration still hold for distributors, or is this typical for the industry?
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Common sense says if the loss of one or more of these customers risks insolvency, it is not smart to buy or invest in that company. And good luck to the owners. (It is so simple to compute net cash flow.)