21 Nov Built to Sell Radio: Is Your Best Customer Hurting Your Company’s Value?
In 2002 Chuck Crumpton started Medpoint to help businesses bring medical devices and pharmaceuticals to market. The company quickly took off after Crumpton landed a prominent blue-chip client.
It was a blessing and a curse.
At one point, the blue-chip customer made up 83% of Medpoint’s revenue. Determined to reduce his customer concentration, Crumpton implemented a clever strategy to minimize his dependency.
The strategy worked as Crumpton successfully reduced his reliance below 50%, allowing him to sell Medpoint in 2020 for around five times EBITDA. In this episode, you’ll learn how to:
- Reduce your dependency on a single customer.
- Establish strong relationships with large companies.
- Vet employees to ensure a cultural fit.
- Build trust with independent contractors.
- Lead with integrity.
- Sell your company without an earn-out.