Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Jon T.C. on February 08, 2007, 07:00:32 pm

Title: Business Valuation
Post by: Jon T.C. on February 08, 2007, 07:00:32 pm: Hi All,

Is the value of your round for selling purposes :

1) ? x the average monthly turnover

2) ? x the total value of all your jobs including 2 & 3 monthly - if all jobs performed once)

Cheers Jon
Title: Re: Business Valuation
Post by: SHINING EXAMPLE on February 08, 2007, 07:18:42 pm: Hi John, Monthly turnover would be more appropriate. However, I believe that the actual QUALITY of the round should be factored in.
Eg. £1000 of work is desirable if it can be done in a week, but if it takes three weeks it's hardly something worth paying for!
Title: Re: Business Valuation
Post by: Jon T.C. on February 08, 2007, 07:50:57 pm: So the answer to my question is.........

remember, I am only giving you 2 choices ;)
Title: Re: Business Valuation
Post by: russ_clark on February 08, 2007, 07:59:53 pm: If I was selling I would go for min 3 x no. 2 option
That would be my starting point for negotiation
obviously vans eqp would be additions.
If I was buying it would be different story :)
Title: Re: Business Valuation
Post by: SHINING EXAMPLE on February 08, 2007, 08:26:43 pm: Quote from: Jon T.C. on February 08, 2007, 07:50:57 pm
So the answer to my question is.........

remember, I am only giving you 2 choices ;)

No.1
Title: Re: Business Valuation
Post by: Jon T.C. on February 08, 2007, 11:26:12 pm: Thanks both. Anymore?
Title: Re: Business Valuation
Post by: Paul Coleman on February 09, 2007, 07:50:43 am: Quote from: Jon T.C. on February 08, 2007, 11:26:12 pm
Thanks both. Anymore?

At the moment I would go for option 2 as I do a 6 weekly cycle and don't have a full workload. The time off that I get would reduce the monthly average mentioned in option 1. Also some of my little bit of 12 weekly work is very well priced and is worth paying for.
Title: Re: Business Valuation
Post by: Dave hook on February 09, 2007, 07:34:21 pm: Pay for the total monthly turnover. Usually people pay x4 or x5 times what the monthly turnover is. Last round i bought I payed x10 cos of the quality of work, that should be considered as welll
Title: Re: Business Valuation
Post by: Biscute on February 09, 2007, 07:41:56 pm: The way people sell and value their round here is they normaly take the value of a month X it by 3. so if you earn 1000 a month you colud sell it on an average of 3000. But if you have houses all over the places you would go a bit cheaper, or you have a lot of work underpriced with new houses built and other pertential you could get more. hope i helped :)
Title: Re: Business Valuation
Post by: Biscute on February 09, 2007, 07:45:47 pm: By the way Dave the work you buy must be dam good 10x the value is crazy, thats nearly a whole year of work with out earning a penny. also imo its not worth buying work at x5 the monthly value, at a push i would go to 4 if it was the dog frollics but nay more.
Title: Re: Business Valuation
Post by: Dave hook on February 09, 2007, 08:46:09 pm: Paying x10 is basically down to loads of competition for rounds where I live and the work is done every 2 weeks. I know loads of wc who've paid x10
Title: Re: Business Valuation
Post by: Dave hook on February 10, 2007, 08:44:19 am: The last round I bought the chap I bought it off had maxed out his credit card in order to buy a new van and he was having trouble repaying it, so I bought some work off him. Nothing like kicking a man when hes down! Least im the only wc on that estate now!
Title: Re: Business Valuation
Post by: Paul Coleman on February 10, 2007, 11:47:32 am: If I worked hard, I could possibly just about compress my 6 weekly cycle into one calendar month. Not that I want to sellanyway. Mayber the lower 20 - 25% could be sold but I'm not sure that anyone would want to buy it. That bottom quarter of my work threatens to be a drag on my business but there's no point moving on from it until I replace it.