Glossary · Reading the business
In short
An evaluation of how much of a business's revenue comes from its largest customers. High concentration indicates risk, as losing one key customer could severely impact cash flow.
During due diligence, look at the top 5-10 customers. If one or two customers account for a significant percentage (e.g., over 20-30%) of revenue, that's a red flag. Lenders will scrutinize this, and you should too, understanding the stability of those relationships and diversification strategies.
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.
Pressure-test the numbers before you make an offer
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.
Free · No documents · Usually same-day