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The 7-Minute Takeover S2 Ep 39: Buying a Business with NO Contracts? ("Handshake" Deals)
Are you looking to buy a small business, only to find out they don't have formal customer contracts? Before you panic know that it's not always a red flag! In this episode of The 7-Minute Takeovers, we break down how to handle "handshake businesses" during an acquisition.
Timestamps:
0:15 - What is a "Handshake Business"?
0:38 - Are Missing Contracts Always a Red Flag?
1:15 - Evaluating Revenue Stability & Customer Retention
2:18 - Key Indicators: Customer Tenure & Switching Costs
2:48 - The Biggest Risk: Owner-Dependent Loyalty
3:40 - Castles Sponsorship
3:54 - Scenario: Identifying…
The skinny
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