Assess whether a top customer is actually sticky (6a73cb)

Situation

The desk packet is customer concentration and termination-for-convenience clauses after a peg set at a seasonal high. Working-capital true-up analyst in a family-office reviewing a manufacturing target has to name Proceed or Reprice for this M&A Due Diligence People and Contracts file.

Decision

Working-capital true-up analyst in a family-office reviewing a manufacturing target must choose Proceed / Reprice / Walk / Hold using customer concentration and termination-for-convenience clauses after a peg set at a seasonal high.

Hypotheses to test

• Customer concentration and termination-for-convenience clauses reads as Proceed once a peg set at a seasonal high is lined up to the same M&A Due Diligence population.
• Customer concentration and termination-for-convenience clauses is closer to Reprice after a peg set at a seasonal high; Proceed would over-claim this People and Contracts extract.
• Walk is still live in customer concentration and termination-for-convenience clauses for working-capital true-up analyst in a family-office reviewing a manufacturing target.
• Customer concentration and termination-for-convenience clauses is missing the fact working-capital true-up analyst needs after a peg set at a seasonal high; stop this M&A Due Diligence close.

Analysis required

• Name the document working-capital true-up analyst still needs before signing.
• Test whether a peg set at a seasonal high is a diligence gap, a price chip, or a walk-away.
• Separate a one-off add-back from a recurring earnings issue in customer concentration and termination-for-convenience clauses.
• For this M&A Due Diligence People and Contracts file, read customer concentration and termination-for-convenience clauses against a peg set at a seasonal high and write the one fact that would move a top customer is actually sticky for working-capital true-up analyst.

Recommendation

Choose Proceed / Reprice / Walk / Hold on this M&A Due Diligence / People and Contracts packet (customer concentration and termination-for-convenience clauses after a peg set at a seasonal high). The follow-on People and Contracts action is what working-capital true-up analyst does next: implement the option, assign an owner, and log the missing fact.