Last week I bought 28 Clients from a webhost recently...
Until the money had been transfered I didnt know that the host only had 'domain name' and 'email address' for each client and nothing more.
The webhost when asked to email the clients to inform them that we had now taken over there accounts and would require there details etc.. replied "can you do it as we dont know how to word the email"... we agreed and emailed them....
We then had 17 replies saying things like "im not willing to work with a company that cant even store our records from orders etc, and want to cancel my account"
So now I have 11 clients, and only three of them have replied and agreed to transfer over!
What do I do? do I ask for the money back? just cut a loss? what?
Always get it in writing, and signed. Not just a verbal contract, a formal written contract. If you can, get it under seal. If you have a contract under seal you essentially have a guarantee that the courts will enforce the contract so long as it does not break the law.
I wont purchase customers or buy out another company unless they provide me with a copy of the purchase agreement/contract of sale. I then sign it and get it notarized, fax it to them, and they sign/notrize it and fax me a copy. I also am wary of purchases that do not include an NDA to start the sale talks.
When discussing purchasing a company, you usually learn things about them (financial reports) and other things that are not usually public knowledge. By having an NDA, all the potential buyers cannot share your details with anyone else, so the buyer is assured that that info won't be made public after the sale.