Buying out competitor

[Glen Hogan]

I'm interested in approaching a competitor about buying him out any ideas on were to start on what it's worth? I have sold two companies in the past neither were fleet washing.

 

[gutterdog]

I read somewhere about buying out a competitor. You dont give him a bunch of cash up front. You give him a percentage of the earnings for the next year or 6 months or something?

 

[gear junkie]

Buy his phone number....nothing else.

 

[extremecleantn]

Buy his phone number....nothing else.

If you buy his phone number you should buy his website, and anything else that can benefit your business make sure to get his customer list and any pending jobs.you will also have to contact an attorney to fill any papers needed.one huge thing in the agreement is to make a point that you are not to be held responsible for any damages, pending or future lawsuites from his business. I know a person that bought out a business and the old owner had a pending law suite against them for sexual harraessment and the new owner didn't have the old owner sign that agreement and was sued with the old owner for the following g reasons, keep the building, keep the same employees, keep the name of the business, operated the business in the same manner as before. Also have them sign a no compete form.

As for the price you will have to find out what he has made in the last couple years, and based on that number you can put some money down and offer paying a % for customers that stay with you.