Thread: Buying business
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Old 10-10-2006, 02:30 AM
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clc2003 clc2003 is offline
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Join Date: Jun 2004
Location: Ia
Posts: 217
Buying business

I was approached by a fellow competitor who I know personally to see if I would be interested in buying him out. His Father is in the garbage business and so is he. Now he bought out another garbage company and no longer has time to do both. One of the problems is that he doesn't want to sell any equipment, just his client list. He said he would sign a no compete clause, but I don't know if I will be able to keep clients on list for next season and that bothers me alot since there is only 2-3 weeks left in the season. I won't get a real chance to prove my work this year and I sure don't want to sign on dotted line and come next spring not have any customers and still owe for business. I offered him a pro rated system stating that if next spring any customers deciding not to go with me the value of the business would drop and so would the purchase price. He did not go for that and he said that he would take me around to introduce me to clients but there is no guarantee of returning for next season. I told him then that the customers would need to sign a contract for next season and he wasn't too sure about that either. He told me that the only benefit for them would be to lock into a price that would cover them in case of gas prices spiking again. My problem with that is if gas gets out of hand I would need to have the ability to charge a fuel surcharge. Sorry so long but I am not sure what to do. I am interested in trying to expand my business and this is a great way since my market is overcrowded with contractors and not enough work. I need to get bigger or else I am gonna have to get a part time job. I just don't want to make a mistake and screw myself. PLEASE HELP!!

P.S. Sorry so long
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