Glossary · Reading the business
In short
A business has concentrated risk if too much revenue comes from a few customers, suppliers, or products. This makes the business vulnerable if those relationships change.
Lenders look for customer concentration, typically over 10-20% from a single client. If a large portion of the business depends on one or two clients, your due diligence needs to confirm those relationships are stable and diversified. Mitigate this by securing long-term contracts or diversifying the customer base post-acquisition.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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