Damon Pistulka – Be Careful of Concentration Risk

<p><strong>BIO: </strong>Damon Pistulka earned a Mechanical Engineering degree in college, then worked in technical and managerial roles, including designing, building, and operating facilities.</p><p><strong>STORY: </strong>Damon’s company focused on building a client’s business for sale. The client pulled out of a great offer at the last minute.</p><p><strong>LEARNING: </strong>Always have a contract in place and ensure it has an exit clause that protects you. Diversify to avoid concentration risk.</p><p>&nbsp;</p><blockquote class="ql-align-center"><strong>“Always have an exit clause when leveraging your time against future value with clients.”</strong></blockquote><blockquote class="ql-align-center">Damon Pistulka</blockquote><p>&nbsp;</p><h2>Guest profile</h2><p><a href="https://www.linkedin.com/in/damonpistulka/" rel="noopener noreferrer" target="_blank"><strong>Damon Pistulka</strong></a> earned a Mechanical Engineering degree in college, then worked in technical and managerial roles, including designing, building, and operating facilities. Over the decades, he has led various businesses. Now, he helps owners build valuable businesses that they can sell when they want to.</p><h2>Worst investment ever</h2><p>When Damon started his current company, it had what would have been considered a dream client. Damon and his team allowed that client to take up all their focus. The company got the client through the <a href="https://exityourway.us/" rel="noopener noreferrer" target="_blank">Exit Your Way</a> process in the hope of exiting them with a very nice return.</p><p>After about 24 months of work, the client just decided to stop. Damon and the client were sitting at the table one day with a buyer willing to pay them $10 million more than they’d initially asked for. The client just said no to the offer and insisted the business was worth more than that.</p><p>Damon and his team had invested a lot of time into the sale. They had focused entirely on this client and had not built other clients up. Damon’s company w