Clean It Up
Market Place => Used Equipment For Sale/Wanted => Topic started by: johnm on December 28, 2006, 09:38:27 pm
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i am thinking of selling off part of my window cleaning buisness which brings in£300 per week how much is this worth i was thinking £9000
it is all houses well established what is your opinion
thanks johnm
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mummm i recon about 4k
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hi its usually 3 months total worth. 1 month = £1200 per month x 3 =£3600??
where do you get £9000??
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I think you'll find 3months total x 3 is £10800 ;D
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why is it like this i really carnt understand it ??? like other business such as newsagents can sell for near hundred thosend pound. if your just selling jobs i could understand it because its just work but surely if your selling your business thats your company name work reputation etc must be worth more ::)
Dave
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Carpet Doc
300 x 4 = 1200 =one month x 3 = £3600
selling formula for any business is based on Net profit, not turnover, then other factors have to be considered.
if you are selling a retail business you have premises, stock, goodwill and probably t/o in the thousands per week.
robbie
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one of my mates in paisley just bought a window cleaning round worth £800per week he paid £40.000 for it and it was another one of my pals that sold him it.i also do window cleaning and carpet cleaning would never dream of selling my round for 3 months money. darren
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thats the problem in the cleaning business johnm, unless you have your clients to sign a contract to say they will stay with whoever buys your business off you, then i,m afrad your business is worth what you have... :(
chris
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Hi Darren,
Can't help but think your mate has paid £30,000 to much for that round unless he's bought more than a window round
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I have often wondered why we work on monthly earnings. Why not charge 3 x annual earnings. That seems to be how other businesses sell. Shops and restaurants do not have contracts but sell on previous earning history or potential customers.
We have repeat custom month after month.
A £30k per annum business with £20K profit per annum should not go for less than £60K in my opinion.
I would throw in the van as well ;D
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I know things change but I always thought it was 3 or 3 and a half times the yearly profit. As has been said though, cleaning business's arent always that easy to sell as in most cases the business is successful or otherwise due to the person doing the work, which of course wouldnt be the case once the business was sold. A lot and I mean most of my clients request that I dont have anyone else but me in the properties that are cleaned. They also request that when or if I sold the business their names werent to be a part of the sale. Having said the above when I sold my business it was a sale of my client list of those who I could sell if that makes sense, with the usual van and all of the machines and gismo's. I plan on selling the business I have now when it is worth selling. I add at this time that I would want a lot more than 3 or 4 months profit for it. Best, Dave.
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According to guidelines...............a business, at the end of the day, is only worth, what someone is prepared to pay for it.
Formula goes from 2 x net profit, to as high as 10 x net profit.
Depends on many factors, one of the most overlooked, being, the true value of the outgoing principal / principals, which can have a major bearing on the ongoing value of the business.
Best of luck with your sale
robbie
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if you buy work thats not signed up then you take a big chance :-\
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Sean
We have a business that turns over £200,000 plus, are you seriously suggesting, we should be looking for£400,000.
As it happens, we are selling within the next 6 months and have been advised that our expected s/p is far too high ( at around " £210k " ) and we should be looking at less than half of that figure.
The business is not c/c
robbie
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you can sell for whatever you want to...I was discussing the practice of valuing a window cleaning round selling at 3 x the monthly sales.
So, if I wanted to sell a good quality round gauranteeing £3000 income every 28 days with extremely low overheads, this would be £9000.00
£9k for a hit the ground running window cleaning business, already established, repeat custom every 28 days with an annual turnover of £39,000.00 - simple to run with flexible hours and able to be run by a sole trader ? £9K - that is, in my opinion ludicrous.
For businesses with massively higher levels of turnover will be subject to different valuation criteria due to the inflated economics.
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The 3x a month formula, takes no account of the hourly rate difference between rounds.
It is ridiculous to expect to pay the same price for a round that could produce 2 or 3 times an hour more, compared to another round.
If you can buy at 3x that could be a good deal, but never sell at 3x
Blessings,
Graeme