Clean It Up
UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: maxcarpets on January 16, 2008, 04:58:01 pm
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Did I read it wright that this business turns over 25K yet he wants 119K for it? Right mines for sale to, a snip at just £1, million!
Cheers!
Justini
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Justin, just seen it myself.
Only way this would be possible is if their was a asurrances that the commercial work is contracted to them. If its that good why is he selling it, would be easier for him to pay someone else to run it and take the profits. ???
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I think what he is trying to do is sell it on the basis of future advertising, and we all know how good yell is? although he has spoken to other carpet cleaners that get 50k from yell. Well it wasnt me, I dont think you get 50k if you spent 50k with yell.
Cheers
Justin
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Surely a missing zero would explain it
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No Missing zero, the guy is expecting sell it based on expected turnover.
:o :o :o
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I'm expecting the Missus to say yes tonight after I took her out for lunch today ::)
Shaun
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It's probably someone on here ???
But you can't sell a business on what it might turnover in five years time. He only says he gets 25k a year from domestic customers, but doesn't say what the commercial turnover is.
Be very lucky to get 2X annual net profit + what the van and equipment is worth now.
What would you pay for this assuming 25k turnover?
Might be worth 30k to someone including van etc.
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I might turn over 10 million in the next 6 yrs, any offers?
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People try to on Dragons Den they usually get told to go back downstairs
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Whats he on about its hard to get an yell.com listed!?
You just got to pay. That is if you like losing money.
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But he's been told it will bring 50K ( by the YP rep probably )
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He only says he gets 25k a year from domestic customers
I think he is saying that he generated 25k from his database of old custys. Not new domestic business, which would be pretty good.
Most business accounts with High Street banks will give you a business valuation. He probably had one of these done. Unfortunatly all they do is tke your pre-tax profit and times by their own figure of between 4-7 for a small trader. so 25k profit x 5 = 125k.
This in the real world doesn't work and any sole trader selling could only at best expect a few grand for for customer goodwill. I bet his van is financed up to and he is paying monthly for the advertising.
There is a big difference between a business and a sole trader when it comes to selling.
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I would offer 10K without van & machines.
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Here are few more for sale
http://uk.businessesforsale.com/uk/Carpet-and-Upholstery-Cleaning-Business-For-Sale-2.aspx
http://uk.businessesforsale.com/uk/Cleaning-Company-For-Sale-3.aspx
http://uk.businessesforsale.com/uk/Carpet-Cleaning-Franchise-For-Sale.aspx
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None of them are worth that price. Sadley we all over price when selling.
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Easy to come down from a high price, presuming they are open to negotiation.
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Yes but you need to be in the right ball park, this chap is so far off the mark that there can be no middle ground, realistically, based on the information he is supplying, and that is all we can work on, his business is worth about 1/10th of what he is asking.
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Other factors to bear in mind would include whether the customer base up for sale fits in with your own customer base. It may not be the target market for you.
Also how many of the clients give repeat business and how regularly. We should all know how Pareto's Law works.
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It's worth what someone will pay.
I say good luck to him. There are a lot of people with far more money than sense and life has a way of redistributing it to those who understand it.
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14.500 Net profit!!!!!!!!! ;D ;D You'd get more stacking shelves.
It wouldn't suprise me to find out his turnover was about 35-40K. What a waste of resource, time and moral.
Matt
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Just seen this: http://cgi.ebay.co.uk/Carpet-Upholstery-and-Hard-Floor-cleaning-Business_W0QQitemZ300192687242QQihZ020QQcategoryZ11762QQssPageNameZWDVWQQrdZ1QQcmdZViewItem
I was quite surprised to see it going for £119,000.00 :o There's a website listed on the van: http://www.advanced-cleaning.org.uk/ which hasnt yet been created (under construction). People normally do this unwittingly thinking that if they list a website on their marketing - it will 'look good'. I think this is a mistake personally.
In saying this, I wish him all the best, who knows it could be a real bargain and may well be worth that much! Any offers anyone?
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Couldn't find the business listed (despite the logo) on NCCA web site either - although I could have missed something.
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Interesting article in this month's edition of CHT.
Page 23 "How much is your contract cleaning business worth?"