3 ms·
I completely disagree with both the spirit of the comment as well as the particular strawman presented. It is not better at all, by almost any metric other tha
by nickstinemates 3y ago
I completely disagree with both the spirit of the comment as well as the particular strawman presented.
It is not better at all, by almost any metric other than overhead. Losing 1 of 1000 customers @ $1000 is very different than 1 of 1 customer @ $1M. One is easy to manage, the other leaves you dead in the water. In addition, you'd start to make concessions/unnatural decisions because you're so lopsided in diversity. And you're going to get completely fucked at renewal time. and, and and..
Good M&A teams know this. They build a risk profile when revenue is a component of the acquisition. The acquiring party gets to learn a lot about the fundamentals when putting deals together and it's all factored in.
To put it simply: having a healthy balance of revenue from multiple sources is a premium. Those are opportunities to advance your relationship and grow. Too many eggs in too few baskets are major red flags that will have your revenue working against you.
- pantulis 3y agoAbsolutely valid point, thanks for your comment!