How many multiple can one get per account with no contract usually ?

Thanks !

"A.J." wrote:

I'm not sure since mine were all under contract. We used a 1- to 3-year
(customer's choice) contract with annual renewals. I got 36 multiple in the
sale which I believe was common in the industry at the time. I suppose if you
had a stronger contract you'd get more but with no contract at all an
important factor is going to be the length of time you've had the accounts.
Short average times may indicate poor client relationships to a prospective
buyer. Another issue will be what you charge in comparison to what is common
in your area. If you charge too much clients may be more inclined to bail
when their warranty is up. If you charge too little fewer buyers may take an
interest since they'll have a hard time ramping your clients up to their
rates.

Excellent reply, thanks Robert.

"Robert L Bass" verizon.net> wrote in message
news:8oJVj.5663$%%X1.1533@trnddc08...

"AJ" wrote:

You're most welcome. Hope you get good money when you sell.

--

Regards,
Robert L Bass

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On May 11, 4:21 pm, "A.J." gmail.com> wrote:

RHC: This is a very good question and one with a host of variables.
Since I have no long term contracts on my account base, it is one I
have had to deal with. With or without a long term commitment,
competent...

technically, without a contract...you have nothing to sell.

--
**Crash Gordon**

"A.J." gmail.com> wrote in message
news:MyIVj.261969$pM4.28512@pd7urf1no...

Crash Gordon wrote:

I'm glad *you* said that. It's sorta what I was thinkin'.

On May 12, 10:34 am, "Crash Gordon"
wrote:

Not necessarily. If the seller has his customers signed up to
month-to-month contracts, the accounts may still have value, though
probably less than a longer-term contract would be worth.

If the seller has no contracts at all, or contracts that don't contain the
proper language to limit liability, the buyer may require the seller to
sign his accounts up on the buyer's contract form as a condition of sale.
Not the best arrangement for the seller, obviously.

Finally, nobody has mentioned the guarantee period. The seller will be
expected to guarantee that the accounts he sells will continue making
payments to the buyer for some period of time after the sale. Part of this
is to keep sellers from getting paid for deadbeat , cancelled, or
nonexistent accounts, part of it is to protect the buyer from paying for
accounts that cancel or go out of business a short time after the sale.
The buyer holds back a percentage of the purchase price until the end of
the guarantee period. Even on month-to-month contracts, this amount gives
the buyer some protection.

"tourman" wrote:

I thought he meant the same thing. Was that not correct?

--

Regards,
Robert L Bass