Clean It Up
UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: jasonl on August 19, 2009, 08:58:15 pm
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National franchise is about to be sold to management in a £13 million deal?
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Sounds intruiging. I'll put in an early guess that it's the Irish one 8-)
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Burger King ;D
Shaun
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It is a carpet and upholstery cleaning franchise.
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Rainbow?
Service Master?
Chem Dry?
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I'd have thought these 3 were worth more than 13 million,
Hydrodynamix?
Stainbusters?
Shaun
PS Jason when are you moving?
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ACCA
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TACCA :D
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Neil , it is one of those 3 ,,, yes it is a bargain in my eyes. All will be revealed in the trade press soon enough
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Chem Dry, turnover well down due to insurance companies cash setling.
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Gotta be Service Master :)
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I don't think it's SM ;)
Chemdry aren't on the rocks either, although yes their insurance work has suffered the same as everyone else in the industry.
CD also do regular domestic/commercial cleaning etc. to keep themselves ticking along. SM also do the same, plus in addition to the insurance work they also have diverse franchise outlets covering furniture repair, domestic maid service, commercial contract cleaning and lawn care. If I could get a loan for 13million I'd be buying it at that price ;)
Must be the one-trick pony :)
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Its common knowledge that Homeserve were selling Chem Dry. I think they paid 19 million for it in 2004. Some of the larger franchises were trying to club together to buy it. How would that have worked :o
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Remember , all 3 have great income streams from royalties/franchise fees, and equipment sales, also franchise resales.
Some have valuable freehold properties too.
I have been told all the nitty gritty , it looks like a great deal ,, and this company stands to become very strong as a result. In turn the industry profile will raise, good for us all potentially.
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I assume by the IRish one you mean cleaning doctor. Its owned 100% by the boss Willie Lyttle as far as I know. He will even talk to you when you ring!!
Mark
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I have been told all the nitty gritty , it looks like a great deal ,, and this company stands to become very strong as a result. In turn the industry profile will raise, good for us all potentially.
Jason
I dont follow. How could a management buyout help the industry unless the current owners where so woefully bad in the first place??
Mark
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I'd have thought CD were worth a lot more than that. Have Homeserve taken all the insurance market out of CD and left them with cleaning only? what's the deal with buying them to sell it on?
Shaun
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Why did ITV buy Friends Reunited in 2005 & sell it off at 150 million less 4 years later???. Probably the same reason
regards
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Cud it be Rainbow? I say this because the local rainbow van can be seen every day on a small building site.
Dont think their getting much work atm
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did a job last week for a women who's son in law is a rainbow franchisee ;D
derek
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Well whoever gets it will be quids in because everyone knows there's a pot of gold at the end of the Rainbow. :D
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I don't clean my mother in law's carpets but I would poo on them.
Shaun
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Can you give me a call when you not busy shaun cheers
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Don't forget they are only buying the master franchise. The bulk of the turnover is with the franchisees. The master franchise makes money by selling licenses, fees and products.
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Have to be Friday as I'm having a day off tomorrow :o well actually a day off from cleaning.
Shaun
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John, I kind of agree with you but I know with SM the supply of products and equipment is as good as non-profit making. The supply infrastructure funds its existence and not a lot more I wouldn't have thought. It might be different with others.
Franchise sales don't happen every day. The fee for the sale of a franchise licence goes to the person selling it... a new area yes, head office take it but an existing area the money (minus a fee) goes to the franchisee selling it. The money made on franchise sales, in proportion to royalties, is tiny.
The value is in the royalty fees.
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I don't clean my mother in law's carpets but I would poo on them.
Shaun
Can you give me a call when you not busy shaun cheers
Jason have you got a "carpet" job for Shaun round at your mother-in-law's? ;D :D
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I've got my 'candoos' at the ready!
Jason I haven't got your new number.
Shaun
PS Exciting day going to look at a commercial laundry for sale
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I was speaking to a Chemdry chap recently and from memory their chemical fees where massive. From memory I think he quoted 10% of the job is in chemical :o :o
So someones making a few quid there.
Mark
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That is correct Mark ,, 10% plus in chemicals, I bought an underpowered porty from the master franchise in 1995 for 6k ,, they must be a lot more now.
A chap I know bought a transit and rejigged HM truckmount for 42k plus vat last year from CD, funny thing is he thinks it is great ,and that the price was fair.
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No wonder they charge so much !
Steve
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jasonl, you were 2 million out! ;D ;)
Homeserve Emergency Services (HES), a service provider to domestic insurance companies, has been bought out by private equity firm LDC for £11 million.
http://www.growthbusiness.co.uk/news/fundraising-deals/1076092/ldc-completes-homeserve-buy.thtml