AIC23 BV - Customer Concentration: The Good, the Bad, and the Ugly

Session Description

In this session learn more about non-diversifiable customer diversification and concentration, including examples of customer concentration increasing Beta, and risk; examples of increases in the cost of equity and debt in various industries including new research of 50 microcap distribution companies who identified a customer concentration issue; situations in smaller private companies where customer concentration can show positive influence on earnings and stability, thereby increasing value; and suggestions for appraiser investigation when presented with clients showing high or variable customer intensity.

Speaker

Robert Schlegel, FASA | Principal | Houlihan Valuation Advisors
Mike Hill, FASA | Partner, Valuation Services | Weaver and Tidwell, LLP

Continuing Education

Review of this session recording will award 1 CE hour. 

CPE credit is not awarded for this pre-recorded offering.