Even when a business has strong repeat customers, buyers will naturally question if a change in ownership will cause customer attrition. One way to help alleviate a buyer’s customer attrition concern is through the use of customer contracts (if appropriate) that outline the basic terms of the relationship, and if possible, indicates the anticipated sales volume. For many businesses, however, customer contracts would need to allow for fairly easy cancellation in order to get customers to sign them. Also, as with any customer contract, you will want to ensure that your attorney includes language in the contract to allow for the transfer or assignability of the contract to a new owner when you sell your business.
Buy and Sell Well
Codiligent Business Brokers' blog on entrepreneurship, capitalism, and successfully buying and selling businesses.
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