I hope this was simply a bad reporter not a bad business buyer.
The Business Journal recently published a supplement titled, “From Beginners to Bigshots.” One of their examples was a business acquisition in Memphis and the reporter wrote, “One year in, he observed that two clients comprised 80 percent of revenue. So he began the process of diversifying the business….”
Tip: You should know that before you buy a business. It’s called due diligence.
If you’re an owner (seller), something like this should scare the heck out of you. I’m surprised the bank didn’t find this out. Of course, it was pre-Great Recession and both buyers and banks were a lot sloppier then.