Hello - need some advice/guidance if possible.
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I have just qualified this summer as a 'mature' student.
I am in the process of purchasing an existing business. There are no premises involved as such as the vendor operates out of 2 sites one day week and just rents them for the day. Vendor is retiring. Have talked to 'landlords' of the rooms and they are fine with me taking over.
So in effect I would be purchasing the client/patient list and some bits of equipment (trolley/light) rather than bricks/mortar. Turnover in the region of £23,000. Asking price £20,000.
My (potential) accountant has advised that I should demand the vendor put a clause in the sale contract that if a certain % of clients leave in say first 6 months then he has to pay me 'x' amount and same over 9 & 12 months.
Alternatively he advised that I propose payment by instalments, e.g. £5000 for first 6 months, £5000 after 9 months etc - again to ensure patient numbers remain constant and he not sold me a sinking ship!
As this is all new territory for me and with podiatry being a unique business field I was wondering if this is the norm (having such clauses included in sale contract) or have most people in who have been through this just taken the plunge!!??
Any advice or comments would be very much appreciated.
Thanks
Kwok
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