buying accounts

[boxman]

I have an opportunity to buy some accounts from a service that is getting out of residential to focus on commercial. i know there are probably lots of problems with doing something like this but my main question right now is what would be a reasonable price structure? 2 times the monthly income, 3 times the monthly, I have no idea. Has anyone got some experience with this kind of thing? Any help would be appreciated. Mark

[PNA]

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I too am thinking about doing something like this and would like to know what the pricing structure would be like.
PNA

[Seascape]

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2 maybe id say. I surely wouldnt want to work all those accounts for free all summer. What if they dont re sign next year. That would suck.
i dont even like the sounds of 1 month honestly.
mike

[CCLS]

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I'd only give the guy 3 mows worth of money for the accounts. One way to protect yourself from getting stiffed if customers leave is to make him set up a payment plan.

April- Make 1st payment last week in April to cover 1/3 of the buy-out.

May- Make 2nd payment last week in May to cover 2/3 of the buy-out.

June- Make 3rd and final payment last week in June to cover the whole buy-out.

Make a clause in the agreement, that if a customer leaves before you have paid him, then you do not owe him for that customer. All you are out is what you have already paid him. This way you are making money the other couple weeks in the month and you can pay your bills. Just a suggestion.

[andersc1]

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Personally I like Shawn's idea. Keep the value to 3 or 4 mows worth, and spread the payments out over a period of 3 months.

Curtis

[mariner]

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[Maddog]

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I also feel that Shaun's idea sound good.

[cmoore]

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I bought an intire businesss when I got started. The best thing to do is go around w/the present employer and explain to the customer what is going on. I would say he was getting out of the business, I wouldn't mention the $$$.


c moore