There are a number of risks when buying a business and one of them relates to key customers taking flight in the early stage of the transfer.
Whether or not you choose to engage the services of a business advisor is really up to you and your preferred mode of operating your business.
Obviously I believe there is value in seeking independent business advice; I think we’re all better decision makers if we’re able to test our propositions with someone who isn’t directly related to the issue at hand, but has relevant expertise.
In the blog I’m using examples from our own clients to show how independent advice is adding value in their businesses.
In our experience, the risks associated with business purchases fall into three categories:
- Customers, suppliers and market dynamics
- The value exchange.
In this blog we’re focusing on the third risk category, the value exchange, and how you can manage that risk.
Last month I wrote a blog about how to avoid losing key staff when buying a business.
In this blog I'm sharing advice on how to manage another critical risk when buying a business: customers and suppliers.
This risk relates to key customers and/or suppliers taking flight from the business you’ve purchased in the early stage of the transfer.
In doing your due diligence it’s very wise to look at both supplier and customer concentration risk.