Re: Account worth

["AJ" <aj@xxxxxxxxxxxxxx>]

Excellent reply, thanks Robert.


"Robert L Bass" <RobertLBass@xxxxxxxxxxx> wrote in message
news:8oJVj.5663$%X1.1533@xxxxxxxxxxx
> "A.J." wrote:
>>
>> How many multiple  can one get per account with no contract usually ?
>
> 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.
>
> I've heard of a few small companies getting between 12 and 24 multiple
> without a contract or with relatively weak contract terms.  I'd be
> surprised if you get more than that unless there's something special.  For
> example, if you install proprietary systems a competing dealer selling the
> same hardware may find your accounts more attractive, especially if he's
> the only other one around.
>
> --
>
> Regards,
> Robert L Bass
>
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