I recently had a local established Pw’r who is looking to get out of the game ask if i was interested in buying his reoccurring commercial contracts. He’s got quite a few and we haven’t discussed in much detail but i’m looking for assistance.
Is it legal for him to sell the contracts? Can the company break them if he sells?
That’s what I’m not sure. Who’s to say after I give him $x,xxx the customer says nah, we’re good.
Has to be discussed with the customers I’d think. A business attorney should be able to help/answer these questions. For sure the first stop I’d make.
Yeah that’s probably a safe bet. I wasn’t sure if anyone here had experience with this or not. I don’t think this is something just two guys should handle without a professional
I would think later on down the road it would be good to have an attorney, but first I would clarify some of the specifics about the customers as you mentioned, price, frequency, signed contracts, etc. I would also ask him if he would be willing to take an agreed amount per client that actually uses you. One way I have read this has been done on the window cleaning side is to have control of his number with a dedicated phone, and then you give, say 25% or something, of each call that comes through.
Yep! I’d confirm the relationship between the parties involved to assure that they are all active. That won’t even matter If you don’t know what you’re doing. Do a mediocre or bad job and those customers will scatter like the wind.
You want into the business? This purchase might be a great way to get started, but research his online worth.
If you buy a business with a 3-4 star reputation online, you may be in for a long haul driving those numbers up.
Good luck!
IN southern NJ it is kind of normal for one contractor to buy another contractors book. I don’t live there, but in the plumbing game it is kinda common from what my brother tells me.
Next year will be my 4th season so i’m hoping to add this to my schedule, it will be great winter income. He’s drafting something up to send to me with the details. He’s asking $25,000 and drafting something up to me with the details. Once i hear back i can report.
