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S5

Customer Concentration

Revenue / base / 3 to 6 months

What it detects

A single client accounts for a disproportionate share of revenue, creating existential dependency.

Why it matters

[redacted]% is the M&A due diligence materiality threshold, above this, deal structures change and acquirers demand protections. [redacted]% is the level at which most businesses cannot absorb a client loss without emergency action.

Severity levels

  • MEDIUM
  • HIGH

Thresholds

  • TOP_CLIENT_FLOOR
  • TOP_CLIENT_HIGH

Exact thresholds, formulas, and severity bands are omitted from this public view. The full methodology, with every figure, is available in the authenticated app.

How it connects

Loss of top client eliminates [redacted]/mo — equivalent to [redacted] months of net burn.

Sources

  • FASB ASC [redacted]-[redacted]-[redacted]-[redacted] (US GAAP, binding standard)
  • SEC Regulation S-K Item [redacted](c)([redacted])(i)
  • Patatoukas, P.N. ([redacted])
  • PwC Viewpoint

SEE IT ON REAL NUMBERS

The exact thresholds, the formula, and your own figures are in the authenticated app. See it against a real, simulated dataset for Integra Executive Services, our public demo company, or connect your own QuickBooks Online account.

Get accessSee the nightly proof