Re: Brinks & Broadview Takeovers

[tourman <robercampbell@xxxxxxxxx>]

On Oct 3, 5:50=A0pm, Jim <alarmi...@xxxxxxx> wrote:
> On Oct 3, 3:45 pm, tourman <robercampb...@xxxxxxxxx> wrote:
>
>
>
> > I can speak to this happening with an unnamed large company who bought
> > a small dealer out. He had long term contracts, and a too low price
> > for this buyer. So they tried to raise the prices and shit hit the
> > fan. End of a long story, they lost most of the accounts, left a
> > terrible taste in a lot of people's mouth's and learned a valuable
> > lesson in the process. Contract term or not, handle the customers you
> > are buying with care !!
>
> And so .............. =A0you saying that this is what can happen .....
> if a company that does or doesn't have long term contracts, charges
> low monthly fees and in addition, to exacerbate the situation, gives
> free service, ..... should be bought by another company?
>
> And how would would you think that might turn out and would compare
> with a company who had long term contracts, charges monthly fees about
> mid range to high, charges for service and also has a good reputation
> with his clients?
>
> I think you've made my point =A0.............. for me.
>
> Thank you.

RHC: Take what you want from it as you will. My point (which you
missed) was that it behooves any seller to watch closely the buyer's
intentions and actions during and after the sale. Since most buyers
will exercise some form of "clawback" for a period of time, unless you
dictate (or at least exercise) some control over the terms of how the
clients will be approached by the buyer...content of letter of
advisement etc, you could end up on the short end of the stick when
they screw it up, and the clients leave prematurely. No matter whether
the clients are mid range, with long term contracts, or short term
with low monthly rates, etc, if the buyer messes it up, or gets
greedy, it's the seller who suffers most !! Regardless of the monthly
rate, terms of contract or service commitments, the overall long term
total that ends up in your pocket can be a far different amount than
what is contractually agreed upon up front.
No company is going to chase hundreds of customers who have decided to
bail out of a long term contract because they are not satisfied with
dealing with a new buyer.

Your contracts can mean little at that point regardless of their
length. So know your buyer well was my only point....