Recently bought a business. Will take ownership in 2 weeks time.
while negotiating price (6 weeks ago), seller confirmed in writing the revenue and contracted customer base at the time. This week we rechecked the latest numbers, and it is about 25% less (both revenue and contracted customers. contract is term based but with exit clause). apparently a number of clients exercised the exit clause when they heard about transfer of ownership.
i want to hold seller to the agreed number of contracts, but there is really nothing seller can do in remaining time to resign 25% of revenue, so can i renegotiate purchase price or should i walk away and loose a significant deposit. we are convinced we can rebuild the lost client base within 4 to 6 months.