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Notify customers of new owner??

Discussion in 'Business Operations' started by DiscoveryLawn, Mar 11, 2004.

  1. DiscoveryLawn

    DiscoveryLawn LawnSite Senior Member
    Messages: 408

    I just bought a the assets and customer base of another Lawn Care Company. He has just sent out his letter to the customers letting them know that he has sold the business and they should expect to hear from the new owner within the next few days. I would like to get my letter out today or tomorrow at the latest.

    Has anyone ever written one of these letters or seen one? I usually write well and have no problem composing but today I am experiencing writers block.

    Any samples or sugestions?

  2. jseamster

    jseamster LawnSite Member
    Messages: 17

    I might recommend calling each customer and scheduling a personal visit (or at least offer a visit.) Perhaps send out the letter indicating that you will call within a few days to discuss their specific needs.
  3. DiscoveryLawn

    DiscoveryLawn LawnSite Senior Member
    Messages: 408

    Thanks for the advise jseamster.
    I could do that with some but there are over 130 of them and I could not possibly meet with all of them. It would be easier try to call each of them but I am swamped with calls and estimates right now. I still need to send a letter to introduce myself at the very least. I want to get out to put down their first app. in about a week and a half.
  4. jseamster

    jseamster LawnSite Member
    Messages: 17

    i was afraid you'd say you had that many. Congratulations!

    I'm just a small-time spud, but I can appreciate how busy you must be. Best of luck for continued success!
  5. justmjc

    justmjc LawnSite Senior Member
    Messages: 261

    Congrats, but how do you know you will get all, most, some, or any of the accounts? Are they under contract to the former owner or you? I thought that if the former owner leaves the business, his contracts become void and your new accounts are basically "free agents". I'm looking at a company right now to acquire if I have the chance. I will personally go house to house with the former owner, explain the situation, and have them sign my new service agreement. I don't want to waste tens of thousands to gaurantee nothing. Just a thought. But more than likely, you will retain many of them.

    If you don't mind, how did you pay? All at once or did they allow payment plans or any creative financing? Glad to hear of your business expanding.
  6. DiscoveryLawn

    DiscoveryLawn LawnSite Senior Member
    Messages: 408


    They are not under contract with the former owner. I only have to pay for the accounts that stay with me through the transition. I paid cash for the assets but I am paying for the customers in installments. We agreed on a price for the entire customer base and we will adjust the last payment to deduct the customers that did not stay with me.

    I would not pay for the entire customer base in advance because you never know how many will still be around after they are told they just got sold to someone they do not even know.

    Good luck in your acquisition if you go through with it!

    DUSTYCEDAR LawnSite Fanatic
    from PA
    Messages: 5,134

    just send them a short and sweet letter and do it fast call as many of the good acc. as fast as u can before they switch to another lco or get other estimates.
    be carefull with this as it could blow up in your face if the customers feel ignored they will look elsewhere
    put a business card in with the letter.
    good luck
  8. DiscoveryLawn

    DiscoveryLawn LawnSite Senior Member
    Messages: 408

    Thanks Dustycedar,
    I agree, I am going to send out the letter in the morning and the previous owner and I are going to go around to visit many of them this weekend.
  9. kootoomootoo

    kootoomootoo LawnSite Platinum Member
    Messages: 4,369

    I have a problem with this. If I sell 130 accounts and the guy who buys is inept, a prick, unethical or unreliable why should I be penalised if he loses accounts over the season?
  10. DiscoveryLawn

    DiscoveryLawn LawnSite Senior Member
    Messages: 408

    I see your point kootoomootoo. In my case the previous owner knows me very well and we have done business together in the past. So, he knows what kind of operation I run and knows of my high standards. He recieved offers from three other companies and decided I was the one he wanted to cut this deal with. Three of us were pretty much offering the same thing. I happen to know one of the other bidders and we spoke about this deal before it was sealed.

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