Buying Existing Accounts
I have a chance to buy 18 existing residential accounts... How do I value them? I am told they are all solid customers (I know, who wouldn't say that) who have been with the company for over a year.
They average out to about $90 a home... Do I give him a percentage of the sales for the first year? Example, give him 10% of the gross amount for a year (this would be paid on a montly basis), then nothing after that... or give him a dollar amount for each one. What if all 18 cancel within the first month?
Anyone with a good way to value them or have bought accounts in the past.
I appreciate your help.