How do I find out whether a massage clinic’s corporate chair massage contracts are steady?
Ask for the actual contracts or booking agreements, the renewal history for each corporate client, and who at the clinic manages each account. Then compare the dates and notice terms to see how easily a client could stop using the service.
Start with paper. Are the arrangements written agreements, standing orders or informal bookings? Look at dates, notice terms and whether the agreement can pass to a new owner without the client’s consent. Your lawyer can read these clauses, so share the documents with them early.
Then look at behaviour. Ask which corporate clients have renewed, which have paused and which have left, and why. A client who rebooks without being chased tells you more than a long contract. Look at the mix, too: if one employer provides most of the chair work, the whole line depends on one decision-maker.
Ask who gets the work done. Which therapists attend, and would they stay after a sale? Find out who the contact is at each workplace and whether that relationship belongs to the clinic or to one person. A call with a main contact, if the seller allows it, can be telling. Finally, look at how the income appears in the books, with your accountant. Ask how the clinic wins and keeps these accounts, and whether the sales effort was the owner’s own. A contract with no one to renew it is less steady than it looks on paper. Check, too, whether seasonal slowdowns or office closures have interrupted bookings before.
Key takeaways
- Read the agreements for dates, notice terms and transfer wording.
- Check which clients have renewed, paused or left.
- Find out whether one employer supplies most of the work.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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