Hi All,
Could please provide your thoughts on the following?
The target company utilizes large distributors to sell its products and as a result the top three clients (i.e. these large distributors) account for 55% of the revenue. Now the question is: should we treat these distributors just like any other clients and conclude that the business has high customer concentration or is there a different approach to evaluate customer concentration when distributors are involved?
Your valuable insights are much appreciated.
Evaluating Customer Concentration when a Company utilizes Distributors
![](https://55550cf88fb9105859d2-ecc273435fde99d2e690dfef78341117.ssl.cf5.rackcdn.com/img/defaultprofile.png)
by a searcher from University of Cincinnati - Carl H. Lindner College of Business
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
18 views
6 comments
Sign in to see all replies.
Create an account.