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Asset Value of Clients

By jyimcse ·
My partner and I are going separate ways. I need to estimate the value of the clients so that I get some compensation for leaving the clients behind. We sign our clients to one year terms with a monthly maintenance fee plus hourly rates. As an example, one client has a monthly fee of $100 and on the average I have been servicing them for 3 hours/month @ $100.00, totaling $400.00. They have six months left on their contract. How would I value this client?

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Asset Value of Clients

by Mark L In reply to Asset Value of Clients

Ok. The answer is; that client is worth $2,400 to your partnership, but only if one or the other of you two agree to fulfill your end of the contract. Otherwise, it's worth squat (or worse). First thing comes to mind is split everything 50:50. You can do that? Second thing comes to mind, is who will be servicing your client base after you break up? You? Your (ex)partner? Neither? If your just looking for the $$, go with the 50:50 (average each clients monthly hrs + monthly fees.Add up all the client totals. Subtract you&your partners overhead, and split the rest). If you wish to continue servicing 1 or more clients, factor in the value of that service by taking less $$ on split-up. I leave you with this; If you have good wrkn relationship with your partner, your clients and yourself, you would look more towards future opportunities then backwards to unresolved ownership issues. Be willing to comprimise your current position (only if) it will put you ahead in the definable future.

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Asset Value of Clients

by jyimcse In reply to Asset Value of Clients

Thank you for your response. I am leaning towards the same solution. There are some other matters to resolve, but now I know that in a partnership, every little detail needs to be covered in the partnership agreement.

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