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Old 11-13-2012, 08:28 PM
32vld 32vld is offline
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Join Date: Feb 2011
Location: LI NY
Posts: 3,255
Quote:
Originally Posted by grassmasterswilson View Post
I wouldn't think a contract would be valid if a company I sold but I'm no attorney.

So you contracted customers would be forced to continue service if the new owner had terrible service?

I've never had to do contracts and let my service speak for itself. My only contracts are with commercial customers and there is a very lenient opt out clause.
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Many people post on how they won't take customers that will not sign a contract. Yet they put in a 30 day opt out for them and the customer. Makes no point to have a contract. A service agreement yes.

This is why Landscape businesses without having long term contracts to service clients makes placing a high value on them next to impossible.

As I stated before many businesses have so many clients as restaurants that you can judge that businesses worth by it's pass tax records for the last ten years.

Watching Anthony Bourdain (sp) on TV today. He went back to work in a restaurant for 1 day where he worked many years ago. This one fact is that this restaurant had 757 covers. That means 757 customers. That had not just main courses cooked, but appetizers, deserts, etc. And this was an expensive restaurant.

If this restaurant was sold tomorrow and the new owners were not liked by 57 of these customers and they took their business else where it would not effect the new owners.

However many LCO's don't even have 57 customers to lose.
And those that have their 100 to 120 customers to loose 57 over night would greatly diminish their businesses worth and would most likely such a rapid drop off may put them put of business because 57 good paying accounts can not be replaced over night.


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