Definition
Owner dependency is the extent to which economic performance requires the current owner personally, whether or not that owner founded the business. Assess sales, retention, delivery, exception handling, and decision authority. A buyer who will personally perform the owner’s work faces different replacement economics from a buyer hiring a management team. The relevant test is whether this successor can reproduce the work with the required access, rights, and resources.
What it means for you
Separate duties a new owner can assume from capabilities that require funded replacement or a tested handover. A fixed revenue or earnings threshold does not determine whether the work transfers.
The buyer’s lens
Identify the required successor, incremental recurring cost, transition cash, and evidence that customers and operating results survive the change.