Kill issue
A finding that makes an investment unacceptable under its thesis or constraints after considering materiality and feasible mitigants. A risk indicator, such as supplier concentration, is not automatically a deal-ending finding.
Kill issue in round numbers
Hypothetical: two suppliers together provide 80% of a manufacturer’s annual alloy purchase volume; the remaining suppliers provide 20%. The individual split within the pair is unknown. Investigate alternatives, inventory buffers, contracts and capacity before judging the consequence of losing either supplier. Supplier count does not mathematically determine the volume share.
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| Measure | Assumption |
|---|---|
| Suppliers in the concentrated group | 2 suppliers |
| Combined annual purchase-volume share | 80% |
| All remaining suppliers’ share | 20% |
| Individual share within the pair | Not specified; no equal-split assumption |
Terms Related to Kill issue
Due diligence · Customer concentration · CIM · Key-person risk · All of the glossary