Assess whether management can run this without the founder from customer
August 31, 2026
SITUATION In a roll-up of three regional service companies, customer concentration and termination-for-convenience clauses is the evidence after a CIM that omitted a material litigation. Carve-out separation lead has to pick Proceed or Reprice for this M&A Due Diligence Earnings and Revenue Quality close using customer concentration and termination-for-convenience clauses.
DECISION Carve-out separation lead in a roll-up of three regional service companies must choose Proceed / Reprice / Walk / Hold using customer concentration and termination-for-convenience clauses after a CIM that omitted a material litigation.
HYPOTHESES TO TEST 1. The population in customer concentration and termination-for-convenience clauses is the one a CIM that omitted a material litigation named, so Proceed follows for this Earnings and Revenue Quality file. 2. The population in customer concentration and termination-for-convenience clauses is adjacent only to a CIM that omitted a material litigation; Reprice is the honest M&A Due Diligence call. 3. A roll-up of three regional service companies already contained a CIM that omitted a material litigation before customer concentration and termination-for-convenience clauses arrived; no new Earnings and Revenue Quality path. 4. Provenance on customer concentration and termination-for-convenience clauses after a CIM that omitted a material litigation is broken; do not pick Proceed or Reprice yet.
ANALYSIS REQUIRED 1. Tie quality-of-earnings, working-capital, and contingent items in customer concentration and termination-for-convenience clauses to management can run this. 2. Name the document carve-out separation lead still needs before signing. 3. Test whether a CIM that omitted a material litigation is a diligence gap, a price chip, or a walk-away. 4. For this M&A Due Diligence Earnings and Revenue Quality file, read customer concentration and termination-for-convenience clauses against a CIM that omitted a material litigation and write the one fact that would move management can run this for carve-out separation lead.
RECOMMENDATION Choose Proceed / Reprice / Walk / Hold on this M&A Due Diligence / Earnings and Revenue Quality packet (customer concentration and termination-for-convenience clauses after a CIM that omitted a material litigation). The follow-on Earnings and Revenue Quality action is what carve-out separation lead does next: implement the option, assign an owner, and log the missing fact.
COMMAND RETURNS - Bottom-line M&A Due Diligence option on management can run this, then the evidence in customer concentration and termination-for-convenience clauses, then the action for carve-out separation lead - Hypothesis scorecard against customer concentration and termination-for-convenience clauses: supported / rejected / untestable - Earnings and Revenue Quality finding in customer concentration and termination-for-convenience clauses that a second reviewer can re-perform - Missing page in customer concentration and termination-for-convenience clauses after a CIM that omitted a material litigation, if any
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