Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: PA Ryan on September 06, 2010, 11:55:59 am
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Hi
I am thinking of taking over my window cleaners business. He works with 3 large estate of upmarket flats in London, some for the communal and company owned flats as well as personal customers in the flats.
There is no equipment involved so it would mainly be the goodwill that will be the payment for the business.
Anyone got any idea how to work this out!!!
Help
Best
Ryan
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The valuation of the business is taken from the size of the round x 5 so if the round is 1,200 a month the valuation is 1,200 x 5 = 6,000.
I think this is it according to other posts ..
Darren
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Ive seen rounds sold anywhere from 2x to 10x it really depends on what its worth to you and the seller.
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It's worth whatever you're willing to pay for it...
Andy
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The better standard work the more you can earn the
more you'll
pay.
There is no set amount like 3x monthly value like
some will have you believe.
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You are only buying goodwill, but if your paying a good price then doing the round once with him and being introduced to the customers or a couple of evenings meeting the customers would be a good idea. It's also good to check the prices and intervals with the customers. Try and get something down in writing and signed and counter signed by witnesses. Make sure you know who your buying it from and that he has an address you can find him at.
Sometimes a part payment scheme can be useful where you pay some up front and then some a few months after doing the work, but if it's good work there may be other buyers willing to pay the full amount right away.
Hope that helps Simon.
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Hi
I am thinking of taking over my window cleaners business. He works with 3 large estate of upmarket flats in London, some for the communal and company owned flats as well as personal customers in the flats.
There is no equipment involved so it would mainly be the goodwill that will be the payment for the business.
Anyone got any idea how to work this out!!!
Helpdepends on how good the prices r on the jobs
Best
Ryan
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Depends if your buying the business or the round.
1/ Buying a round, that is all you are buying, a list of customers.
2/ Buying a business, you are buying the established name, telephone numbers, the branding, existing advertising and web presence, retaining the staff and vehicles as well as all the good will, not just a few streets.
I would value the first at 3 - 10 times monthly turnover.
I would value the latter at 2 - 3 times the yearly profit.
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Depends if your buying the business or the round.
1/ Buying a round, that is all you are buying, a list of customers.
2/ Buying a business, you are buying the established name, telephone numbers, the branding, existing advertising and web presence, retaining the staff and vehicles as well as all the good will, not just a few streets.
I would value the first at 3 - 10 times monthly turnover.
I would value the latter at 2 - 3 times the yearly profit.
Don't forget that profit is AFTER wages paid.
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Depends if your buying the business or the round.
1/ Buying a round, that is all you are buying, a list of customers.
2/ Buying a business, you are buying the established name, telephone numbers, the branding, existing advertising and web presence, retaining the staff and vehicles as well as all the good will, not just a few streets.
I would value the first at 3 - 10 times monthly turnover.
I would value the latter at 2 - 3 times the yearly profit.
Dave would yuou like to set up a Cambridge division ? I will sell you the latter