Clean It Up
UK General Cleaning Forum => General Cleaning Forum => Topic started by: kevin finney on November 14, 2007, 05:20:33 pm
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HI any ideas what my business is worth as im thinking of selling up.Limited company,9 staff fully uniformed police checked 3 vehicles 2 sign written 05 06 and 2000 all good condition Turnover approx £60,000 plus Window and carpet cleaning business included.Windows approx £20,000 pa Wfp equipment and trad included,carpet cleaning approx £2000 pa machine included would appreciate your views.Based in norfolk
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9 staff and only £60000 turnover i presume these are all only part time, what is the actual profit the firm makes and how many hours do you work for that.
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Doesnt seem to stack up,
possibly only worth the value of the company assets, unless of course there is some profit hiding somewhere in the mix.
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hi there
i agree doesnt compute at all.
regards
martin
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computer says no
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cough!
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lot's more info required to give you any idea
Nick
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hi probably didnt give enough information.commercial and domestic cleaning t/o 5k per month,9 part timers. Wage bill 2.3k-2.7k per month. Petrol £200 per month. £50 Products .So around 1.5 -2k per month when you take advertising insurance uniforms ect into account.
Window cleaning i work school hours weather permitting all wfp approx £20k pa
carpet cleaning i only started in june because clients on my books kept asking me. Machine has paid for its self and made a couple of hundred on top,so thats an estimate based on what i have done so far.
The cleaning takes about 1.5 hrs a day to run,3-4 hours at the end of the month when invoicing.
Thanks for your replies
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tricky one but i will have a guess.
based on 1 years profit of 20k cleaning, 10k windows (if its staffed)
= 30k plus company assets.
only a guess, others on here probably far better qualified to answer this.
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In my humble opinion your business, like mine is only worth what someone might be willing to pay for it so you could advertise it at a price which you could then negotiate.
Because there is no guarantee that customers would stay with the new owner some would view the customer base as worthless. (Window cleaning rounds may be different - I have no experience here).
Any buyer would want to see accounts,so the annual net profit figure will be the figure of most interest. They would look at the net profit figure in relation to the investment so see if it was worthwhile.
The turnover figure might only be of interest to a new owner if they think they could do better.
You occasionally get people looking for ready-made businesses upon which they can build and in this case profit might be of less importance.
The minimum you would want would be the assets (vehicles, equipment etc) but even then its hard to value second-hand equipment.
You would also need to consider any Company liabilities.
Does the Company have a good name and is it well-known locally?
Aa a starting point, I would sell for the asset-value less liabilities, plus the value of the name(if any), plus a nominal value for existing regular customers, keeeping an eye on the annual net income as a percentage of the amount you are asking for (i.e. is the income greater than they would get if they stuck the asking price in a building society, for instance).
If you get no takers then you are left with selling your vehicles and equipment obviously.
Avoid those firms offering to sell your business for you.