Success in selling the company

My company is a corporation. Legally it is an entity in its own right. If the company starts to fail, then yes, they can pull the contract.
 
junker1 said:
Understood. Do most contracts have a termination clause or can they dump you for any reason? It would just make me a little nervous. Joe shmoe might have been servicing all the subways for ten years but when he sells the company subway decides to put all 25 locations up for bid again.
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I understand what you mean.
However The subways shouldn't have any reason to rebid as long as the buyer is upholding his end of the contract (maintaining good service etc)
I have never heard of a company wanting to rebid because the original company sold out. Their taking just as much of a chance with the buyer as they would hiring anyone else.
 
I have some 4 yr contracts with utilities, government agencies, etc. There isn't a single one who couldn't get out of that contract in 90 days or less.

What brings value to your business is the length of time you've had the same contracts and the ability to be a turn key operation.

Also, being debt free helps a LOT. We owned all our delivery vehicles and all our equipment. It would have been much more difficult if we had loans on all that.
 
Johnson said:
I understand what you mean.
However The subways shouldn't have any reason to rebid as long as the buyer is upholding his end of the contract (maintaining good service etc)
I have never heard of a company wanting to rebid because the original company sold out. Their taking just as much of a chance with the buyer as they would hiring anyone else.
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Yea your probably right, I am just one of those paranoid type of guys.
 
Contracts should be with the company or entity not with the individual. Technically the customers wouldn't even have to know about the sale of the business and I would expect in most cases the key employees would be retained for a smooth transition. Now if your a solo owner operator the transition could be a little more slippery but contracts should still be legally tied to the company none the less.
 
Greg Rentschler said:
Contracts should be with the company or entity not with the individual. Technically the customers wouldn't even have to know about the sale of the business and I would expect in most cases the key employees would be retained for a smooth transition. Now if your a solo owner operator the transition could be a little more slippery but contracts should still be legally tied to the company none the less.
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Understood. Now that I think about it would the sale of my propane provider make me change companies? not unless they jacked up the price or started doing something out of the norm. I am sure service companies, both large and small are sold every day.
 
Any agreement has outs from both sides. Mine are a simply notice by either party.

What smart person isn't going to leave and out?

Shoot I fire customers for reasons also. Last thing I want is a binding agreement that says I have to perform if they change hands to someone I don't like.

I'm picky who I do business with now.


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