Category: Business Risks

Risk Overview: Contracts Not In Place For Top 5 Customers

It’s surprisingly common for small and medium-sized businesses to lack contracts with their top customers. While this practice may be widespread, it can create significant risks, uncertainties, and issues. According to PCE, most buyers either consider customer contracts to be optimal or extremely important.   Here’s how to address this risk.   What does it […]

Risk Overview: Company Size Too Small

When is a small business TOO small? This is an important consideration for entrepreneurs who want to take a company to market for sale or capital investment.   At certain revenue and EBITDA levels, investors may think the cost of acquiring a company—evaluating the opportunity, engaging a due diligence team, paying legal counsel, and so […]

Risk Overview: Business Too Dependent On Owner

A company that is too dependent on its owner suffers from “key person risk.” As a result, the business will likely struggle to thrive, grow and sell when the time comes. The owner may struggle to enjoy life as well.   A survey by Gallup found that small business owners work 60 hours per week […]

Risk Overview: Business Does Not Perform Well In Recession

So your company has taken some hard hits from at least one previous recession. The fact that you’ve survived at all is a win, but an imperfect performance record comes with some risks. As a result of the damage investors experienced in previous recessions (particularly 2008 to 2010), they’ll be particularly cautious when scouting companies […]