Valuation & Finance
Customer Concentration Discount
A valuation markdown applied when a disproportionate share of a target's revenue depends on one or few customers, reflecting elevated revenue-loss risk post-acquisition.
Seller Example
Promoter of a Faridabad auto-parts supplier facing the buyer's 15% concentration discount produces a signed 3-year contract renewal with the anchor OEM ahead of the sale process, materially de-risking the concentration story and successfully negotiating the discount down to 7% before final pricing.