Knowledgebank
Operational & Risk Factors
4 articles
Client Concentration
High dependency on one or two clients (>20 % of NFI each) increases earnings volatility. Diversification reduces perceived risk and improves multiples. Sellers …
Contractor vs Perm Mix
A balanced split (say 60 % contract, 40 % perm NFI) offers recurring margin with highervalue perm upside. Excessive contract dependency can depress margin perce…
Key Person Dependency
Reliance on founders or star consultants can scare buyers. Formalising client relationships, instituting nonsolicitation covenants and rolling out EMI options h…
Compliance & Regulatory Environment
Demonstrating robust systems for AWR, GDPR, IR35, and KYC/RighttoWork checks is nonnegotiable. Compliance breaches discovered during due diligence can trigger p…