Buying a Landscaping Business

[blacklabbear]

I'm thinking about buying a landscaping business from an online broker representing a business in my local area. I am mainly interested in the clientele, to add to my existing clientele and grow my business. Any ideas on how much I should pay for a business? What kind of clause can I include to protect myself from being burned if a lot of clients cancel their contracts? Any information would be great.

Thanks.

Matt

[rckid57]

Best advise is to get an attorney to help with the paper work he should have a good idea what to do

[Phil Nilsson]

What kind of clause can I include to protect myself from being burned if a lot of clients cancel their contracts? Any information would be great

Make it conditional ... spell it out

[bobkessler]

Buying a Landscaping Business

I'm thinking about buying a landscaping business from an online broker representing a business in my local area. I am mainly interested in the clientele, to add to my existing clientele and grow my business. Any ideas on how much I should pay for a business? What kind of clause can I include to protect myself from being burned if a lot of clients cancel their contracts? Any information would be great.

Thanks.

Matt

Good advance thinking. It is quite likely a % of customers will quit, depending on the size of the company you're purchasing. The smaller the company, the more likely they may be to cancel. My attorney put a clause in the purchase agreement that any cancellations for whatever reason was fully chargeable to the seller if it occured within 60 days. After that it was pro-rated up to 6 months.
Another thing. Make sure the seller signs a very binding non-compete agreement so he can't just start up another company and solicit the accounts you just paid him for. Yeah......it happens!
You will need your own attorney, not the one representing the seller.
Good luck