Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: edward1 on February 14, 2013, 10:58:29 pm

Title: buisness value
Post by: edward1 on February 14, 2013, 10:58:29 pm
hi guys,
how much do think an established  window cleaning buisness making a profit of 70k a year would be worth .mixed domestic 30% comercial 70% about.

and who would buy it do you think?
Title: Re: buisness value
Post by: Gav Camm lammy 283 on February 15, 2013, 12:27:08 am
John nolan
Title: Re: buisness value
Post by: Darranvps on February 15, 2013, 05:31:12 am
Max 35k

Title: Re: buisness value
Post by: sunshine windows on February 15, 2013, 06:52:01 am
Rhino man are you having a laugh. He said 70k profit not turnover.

Title: Re: buisness value
Post by: richard jagger on February 15, 2013, 07:14:33 am
He did not say NET profit it could be gross Profit.
Title: Re: buisness value
Post by: PAUL ERITH on February 15, 2013, 08:06:07 am
Rhino man are you having a laugh. He said 70k profit not turnover.



He also said " commercial 70% " which if their is no contracts in place could go national or be taken over by a new national leaving you with only 30% of the work  :-\ :-\

Paul
Title: Re: buisness value
Post by: DMC Window Cleaners Ltd on February 15, 2013, 08:48:43 am
remember guys buying a window cleaning business is about buying good will unless there is contracts in place that will be allowed to swap to the new company doesnt matter if he is turning 75k profit net or gross or 75k turnover its still only good will.

speak to the bank or any "decent" accountant they will tell you the same
Title: Re: buisness value
Post by: ben M on February 15, 2013, 08:51:01 am
remember guys buying a window cleaning business is about buying good will unless there is contracts in place that will be allowed to swap to the new company doesnt matter if he is turning 75k profit net or gross or 75k turnover its still only good will.

speak to the bank or any "decent" accountant they will tell you the same
+1
Title: Re: buisness value
Post by: ronnie paton on February 15, 2013, 09:07:44 am
Most business are good will!!

Commercial could be independent hotels care homes ect I have many that will never go national never big enough, your just has likely to lose resi if some one comes in cheaper!

Title: Re: buisness value
Post by: g.brookes on February 15, 2013, 09:27:44 am
I agree with ronnie. Most businesses are good will. If you buy a McDonald's franchise you've got moment guarantee anyone will come in the door.
If anything, a window cleaning business is one on the more secure businesses to buy as you already have a group if regular, almost guaranteed customers. As long as you don't get conned, and you're not an idiot yourself, buying a round is a very sensible and secure business decision
Title: Re: buisness value
Post by: DMC Window Cleaners Ltd on February 15, 2013, 09:36:00 am
you guys say x5 or x10 a clean is right so think about it if hes doing 75k gross profit at say 50% for arugement sake thats going to be a turnover of 150k
150k x5 is 750k
or
x10 1.5 mil

be sensible here lads what bank or business is going to spend that sort of money and wait that long for a return on investment, buying a business is completely different to buy a few customers

Title: Re: buisness value
Post by: g.brookes on February 15, 2013, 01:33:06 pm
When you buy property to rent it can take 20 years to get your return. The same with lots of other businesses. One year to get your money back is nothing compared to most businesses
Title: Re: buisness value
Post by: formb on February 15, 2013, 03:11:08 pm
hi guys,
how much do think an established  window cleaning buisness making a profit of 70k a year would be worth .mixed domestic 30% comercial 70% about.

and who would buy it do you think?

Sorry Edward but it is completely impossible to value a business from 1 line of text.
Title: Re: buisness value
Post by: jakeandmia on February 15, 2013, 03:23:52 pm
a window cleaning business is one on the more secure businesses to buy as you already have a group if regular, almost guaranteed customers. As long as you don't get conned, and you're not an idiot yourself, buying a round is a very sensible and secure business decision

As said above,youre only buying good will.nothing to say most domestic customers wont get rid of you instantly should they choose, and what if you bought a business that you paid tens of thousands for and included contracts with comet,blockbusters,jane norman,jjb and republic,worthless.Buying a business is a tricky one.
Title: Re: buisness value
Post by: edward1 on February 15, 2013, 04:25:42 pm
 hi ,
yes its 70k net  with a turnover of 130k

the comercial  contract is renewed every 3 yrs just about to renew for next 3 ,but have done most of them for the past 15yrs plus.

soapy, i know what your saying ,but if i were to buy a window round i would expect to pay 2 to 4 times the monthly turnover .so with that principle the buisness would be worth 30 to 40 k .but there was a guy on here a yre or so age who sold a much less turnover as a buisness and got a lot more than 2/4 times.
Title: Re: buisness value
Post by: PoleKing on February 15, 2013, 07:14:06 pm
'The' commercial contract? As in one?
Are you actually looking to sell or are just looking for a valuation based on VIU opinions?
Title: Re: buisness value
Post by: PoleKing on February 15, 2013, 08:03:39 pm
*CIU
Title: Re: buisness value
Post by: Darranvps on February 15, 2013, 08:50:34 pm
I would only be interested in buying the business on the "profit"

Imagine if it turns over 750k with 70k profit

Is it worth more or less than a business turning over 130k with 70k profit?

That is why when and If I buy any business I am only interested in the profit.
Title: Re: buisness value
Post by: PoleKing on February 15, 2013, 10:58:15 pm
It cant just be about profit.
I'd rather have £80k turnover and £70k profit than £800k turnover and £70k profit.
Think of the extra grief?!
Title: Re: buisness value
Post by: Moderator David@stives on February 16, 2013, 09:13:36 am
Recently A sole trader business was sold  into a limited window cleaning business.

The way they come up with the figure which was

The Net Profit ( After all deductions, wages, admin costs, depreciation, etc) for the last 2 years divided by 2, to give an average Net, this was approx 25%of the Gross.

Then £50k was taken off this figure, as that what it would cost for a manager to run that business.

After that the figure was x by a multiple of 1.5 that was used to come up with a realistic figure of the business's worth
Title: Re: buisness value
Post by: formb on February 16, 2013, 09:38:22 am
soapy, i know what your saying ,but if i were to buy a window round i would expect to pay 2 to 4 times the monthly turnover .so with that principle the buisness would be worth 30 to 40 k

You never said what the turnover is.  My point is that without seeing at least the last 2 - 3 years accounts and looking at any contracts that may be in place it would be impossible to say what someone might pay.
Title: Re: buisness value
Post by: AuRavelling79 on February 17, 2013, 12:44:08 pm
Recently A sole trader business was sold  into a limited window cleaning business.

The way they come up with the figure which was

The Net Profit ( After all deductions, wages, admin costs, depreciation, etc) for the last 2 years divided by 2, to give an average Net, this was approx 25%of the Gross.

Then £50k was taken off this figure, as that what it would cost for a manager to run that business.

After that the figure was x by a multiple of 1.5 that was used to come up with a realistic figure of the business's worth


That doesn't make sense to me Dave ...
Title: Re: buisness value
Post by: keyser soze on February 17, 2013, 03:40:50 pm
70k profit per annum with contract in place for 3 years i reckon 70k is the worth , dont slate me lol
Title: Re: buisness value
Post by: Johnny B on February 17, 2013, 04:34:14 pm
To the OP, you have all the facts and figures, and know how long the work has been established.

How much would you pay for it?

John.
Title: Re: buisness value
Post by: kenny bald on February 19, 2013, 11:39:06 pm
Hi Edward1
If you are thinking of selling please get in touch. k.bald.kb@gmail.com