Customer concentration checklist

Evaluate and document customer concentration with criteria buyers use in M&A. Get a risk profile and what to prepare for due diligence. Mexico.

Thresholds (customer 1 > 20–25% attention, > 40% risk; top-3 > 50–60% concentrated) are reference points in Mexican SMEs. Treat as a starting point and see the customer concentration glossary entry for full context.

Glossary Customer concentration: https://capitalenorden.com/en/glosario/concentracion-de-clientes. Guide selling a company in Mexico: https://capitalenorden.com/en/guia/vender-empresa-mexico.

Concentration profile = Solid | Attention | Risk by thresholds: customer 1 > 40% → Risk; 20–40% → Attention; top-3 > 60% → concentrated

Revenue by customer (% of total)

Enter the revenue share each main customer represents. Reference thresholds (20–25%, 40%, top-3 50–60%) come from buyer practice in Mexican SMEs. Customer concentration (glossary)

Customer 1 (% revenue)

Customer 2 (% revenue)

Customer 3 (% revenue)

Customer 4 (% revenue)

Customer 5 (% revenue)

Results

Concept	Value
Customer 1 (% revenue)	38.00%
Top-3 concentration	75.00%
Concentration profile	Risk

Document contracts and offer an orderly transition; the buyer may require more earn-out or retention.

For a cleaner PDF, turn off "Headers and footers" in the browser print dialog.

How do I interpret the results?

A Solid profile means diversification; the buyer will not adjust the multiple for concentration. An Attention profile means the buyer will dig into contracts and stability of key accounts — document revenue history by customer (24–36 months), master contract copies and renewal terms before due diligence. A Risk profile means you should offer an orderly transition and make the case for each key account; the buyer may push for a larger earn-out tranche or seller retention.

The thresholds (customer 1 > 20–25% attention, > 40% risk; top-3 > 50–60% concentrated) are reference points in Mexican SME deals, not hard rules. Concentration that is well documented with solid contracts negotiates better than opaque concentration.

What other tools and guides to review?

Customer concentration (glossary)

Guide to selling a business in Mexico

Due diligence in Mexico

Prepare your data room (guide)

EBITDA calculator

Customer concentration does not block a transaction, but it drives the multiple and structure. To address this and other factors before going to market, see the guide to selling a business in Mexico.

Sources

← Back to tools

Customer concentration checklist | Capital En Orden