Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: andyatkinson on May 10, 2009, 03:13:08 pm
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anyone had any experience selling theyre business as opposed to just selling your round?
its something im considering as ive had an offer, but it does seem a complicated process
any thoughts would be gratefully appreciated :)
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Nothing to do with window cleaning but I sold my one third share of a business in which I worked as a Director with a one third vote.
I would watch out for deals that promise a bit of money now and more after a certain period e.g. £5000 now and if the business does well another £20,000 at the end of the year. I would prefer (as a general principle) a deal that gets say £15,000 now and £5,000 later even tho' the totals don't match. In fact I'd rather walk away with £17,500 now and never worry about it again!
The business "doing well" or even certain set figures is still open to huge interpretation even (especially?) when accountants are involved because your business is swallowed up and if your business is bought by another business then usually they have the funds to mess you around legally and you may not.
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im moving away and was planning to let work to my worker, but he would prefer to take a loan and buy business off me as repayments cheaper each month than my suggested cut.
its a sensible offer and all up front malc, which is quite attractive to just walk away from,
i will not budge on what he's offered me as any less and its not attractive any more as i could take the same sort of money letting the work out for 2-3 years although that can bring problems of its own.
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ewan, he knows the value through working the round anyway, but just made me an offer which was coincidentally what i would of asked for
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Sounds like a very good deal.
This is the way it is supposed to be done, but our game seems to have a lack of trust attached to it so that most never seem to achieve an- exit strategy-.
Where do you stand with capitol gains? Is there any way round this?
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ive no idea about that, need to find out,
it would be enough cash for a deposit on a house for us so if it comes off im happy, if it doesnt then ill let out the work as planned and travel up 1 day a week to work and check up and take income that way,
its actually x8 what the round is worth, but we have a really good name and would have to chuck in most equipment, website, name, phne n0 etc
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I expect an accountant would say he is paying for the vehicles and website etc, in which case no tax would be due.
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sounds good to me! ;D
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you start paying capital gain after £9000 or £18000 if its a partnership
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I expect an accountant would say he is paying for the vehicles and website etc, in which case no tax would be due.
Agreed - don't rely on my advice but I beleive you can legitimately inflate the value of these things to the upper end of their range of values so that say a £20K lump sum might be £15K kit and £5k goodwill instead of £10k and £10k respectively - if you have a good accountant to advise you.
For example your 55 plate van is in pristine condition, your website invaluable and your poles hardly worn ;) and that would also be ok for the buyer (but that's for him to work out with his accountant) because he is then going to be able to write down more for tax.
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thanks guys, much to dwell on! ;)
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Youre in manchester arent you andy??
You not considering splitting up and selling if this other deal goes south?
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why sell a round you make more money long term if you stick at it .
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why sell a round you make more money long term if you stick at it .
read the posts ,hes moving away :D
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oh yeh