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  #1  
Old 07-24-2008, 03:03 PM
MnGreen MnGreen is offline
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Join Date: May 2008
Location: Minnesota
Posts: 354
Account Purchase/ Business Selling Out

Inquired about a small buy out of (30) weekly accounts.
Guy wants out of the business and its a area I was going to expand in to and target next season. Seller says they generate $5,300 monthly.

Offered the guy right up front (2) service calls per account, possibly (3) after route structure and billing/collection records were looked over.
Wanted to make sure these accounts were in the area as described and that they were not troubled accounts in collection.
Offered to even sub out my services on a purchase plan payable at end of the month with billings continued through him for the month.
Thought if I serviced the accounts the customers would be familiar with me by the months end and myself and the seller would both be protected.
Id get a good hold on the times and work @ each account as well as his billing.

Need advise or third opion reading between the lines here.
Need someone to shine the light on me here........
The guy e-mails me and tells me I'm nuts.
Having a hard time looking through the fog here and seeing where I'm nuts ?
Thought I offered up A sweet deal where he gets out asap, saves his reputation by customers not being dumped, and offered what I thought was a very fair buy out of the accounts.
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  #2  
Old 07-24-2008, 03:55 PM
AboveTheCut AboveTheCut is offline
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Join Date: Jan 2005
Location: Maryland
Posts: 137
i would not pay for accounts

you said that you were going to expand into this area next year anyway.....why not just wait and advertise heavily there. you could be purchasing a bunch of duds.
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  #3  
Old 07-24-2008, 04:20 PM
MnGreen MnGreen is offline
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Join Date: May 2008
Location: Minnesota
Posts: 354
Quote:
Originally Posted by AboveTheCut View Post
you said that you were going to expand into this area next year anyway.....why not just wait and advertise heavily there. you could be purchasing a bunch of duds.
Well I saw a opportunity to get an established area right out of the box and with minimul to no work involved that generates revenue right from the start.
Opportunity to see his books would have eliminated any doubts on the health of the accounts.
It would not take long to suck up $2,000 in advertisement and erratic route structure costs before establishing a (30) account customer base in the area.
Figured two years it would take so the $2,000 seemed logical and a instant start that pays for my time/costs and the purchase of the accounts in (30) days. Puts me in the area instantly for half the season yet and opportunity to expand at a much higher rate next spring was my thinking.
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  #4  
Old 07-24-2008, 07:24 PM
howierd3866's Avatar
howierd3866 howierd3866 is offline
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Join Date: Jul 2008
Location: Fort Pierce Fl
Posts: 343
one how do you know he not going back into business after he get your money..a noncompete will not help any... the company can start over by anybody.I agree with abovethecut just push the adv. you may get some people that not even is his customer...if you to buy the list I would atlease paid per cut that way if customer leaves you for any reason you didn't lose anything
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  #5  
Old 07-24-2008, 09:08 PM
ezgoer1969 ezgoer1969 is offline
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Join Date: Mar 2008
Location: Omaha, NE
Posts: 97
I would offer a percentage paid monthly on receivables spread out over 4 mos. Take it or leave it...
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