I am over capacity; can I sell off a tranche of my clients?

It’s tempting; it can be hard to let that revenue go for nothing.

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A few considerations:

What I hear from clients and from Brannon Poe (who brokers firms) is that partitioning off a subset of your client base to sell is generally unattractive to a buyer, because they’re thinking,

• “These must be their worst clients.”

• “These clients come without staff, and I can’t find staff to do their work; staff are in short supply right now.”

• “These clients are usually price-sensitive, and the prices need to go up, and many clients may depart.”

Not that it IS, but it’s perceived as a high-risk, low-value purchase… so my clients who’ve attempted to sell a tranche have concluded that the revenue is not worth the hassle and it’s easier to let the clients go and find other ways to create/supplant that tranche’s revenue.

Of course, you know your clients and marketplace better than anyone, but the above perspective might help prevent or curtail a wild goose chase.

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