What should I check before buying a call centre business?
Check four things before buying a call centre: the client contracts and how much work rests on one client, how each campaign is billed, how long agents stay and how they are trained, and who owns the telephony platform and the customer data that passes through it. Ask for records on each, not summaries.
A call centre sells people’s time, supported by software. The buyer is really acquiring client relationships, a trained team and a phone platform that works. Each can be tested with documents and conversations before you commit. Start with the agreements the business has signed, because everything else follows from what clients have agreed to keep paying for. The general steps are in the due diligence guide for buyers.
Client contracts and concentration
Read every client agreement. Note the term, how a client can end it, and whether it can be assigned to a new owner without the client’s consent. Then ask how revenue divides among clients. If one client supplies most of the work, that client’s decision matters more than anything the seller tells you. Ask to speak with the main clients, with the seller’s permission, before closing.
How campaigns are billed
Billing models differ. Some clients pay by the hour, some by the call, some by the result. Ask which applies to each client, how disputes over call counts are settled, and how long clients take to pay. Compare invoices against the bank deposits that followed. A review of the seller’s financials shows whether the books agree with the contracts.
Agents, training and turnover
Staff are the product. Ask how long agents usually stay, what it costs the business to replace one, and who trains new hires. Find out whether scripts, quality reviews and coaching sit with the owner or with managers who will stay. Check how agents are classified and paid, using the employment records checklist.
Telephony and customer data
Ask who owns the dialer, the call recordings and the platform licences, and whether the contracts transfer. Ask where recordings are stored, who can reach them, and how long they are kept. Clients’ customer information passes through the centre, so your lawyer should advise on the duties that come with holding it.
Related reading
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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?
- 03Business Development Bank of CanadaGovernmentHow to reduce employee turnover
- 04Office of the Privacy Commissioner of CanadaGovernmentPIPEDA requirements in brief
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