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Posted:  25 Jun 2013 01:16  
My sister wants to buy my 4 interior plantscaping accounts. They generate $555 monthly. They are long standing accounts that she has serviced for the last 4 years. What would be a fair purchase price? The business is based in the Bay Area, CA.
Thank you so much!
Posted:  25 Jun 2013 04:17  
just give them to her. she is your sister
Posted:  25 Jun 2013 04:28  
Alex!!! You must know her
Thanks for the tip.
Posted:  25 Jun 2013 05:03  
They are worth whatever the two of you mutually agree they are worth.  Typically, accounts sell for between 3 and 6 months' recurring income (that would be $1,500 to $3,000 approximately in your case).  However, it depends on the solidity of the relationship with each client, and since most contracts include 30-day-out clauses, one might argue that they are worth nothing for that reason alone.  Give them to her unless you really need the money to survive.
Posted:  25 Jun 2013 05:20  
Thank you Clem. I was hoping I would get a reply from you. The accounts are very solid with great retention rates. All I want is a fair price. I would give them to her but I have built this business(double hernias and all) and have retained the same accounts for more than 20 years. I don't want to walk away with nothing. Yes, she is my sister but she already gets half of the profits.
Again, thank you for your input. I would not have survived for over two decades without sites like this and good folks like Clem who take the time to mentor others.
Posted:  25 Jun 2013 15:19  
Kristen,
I'm sure you will do what makes sense for both of you.  And thanks for the good words.  It's my pleasure.

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