[John Walker]

If I decide to sell my rounds, how do I go about it to ensure a fair deal for both myself and the buyer? 

What is normally supplied to the buyer to prove the round etc.
When does money change hands?
Any other advice.

John

[supernova77]

John - What's made you think about selling up?

Are you going to start a different business, or going to get a job?

Andy

[John Walker]

Hi Andy

I'm 65 in a few months and damaged my right shoulder last November.  I'm still working but finding it a struggle now. I had intended to keep going for a few more years but the shoulder problem with continuous pain has been the decider.  If I end up having an op I could be out of action for months anyway.

Been WFPing for nearly ten years so have had a good innings.  Just wish I'd started it earlier.

I'm hoping that someone on here has experience of selling a round and can talk me through the best way to do it giving protection to both the buyer and myself.  I would imagine there can be some pitfalls if it's handled wrong.

John

ps.   (My shoulder injury is not WFP related - it's an allotment injury caused by lifting a heavy object that dropped at one end while I was still holding it.  It forced my upper arm bone into my right shoulder socket and made a nasty noise.  Waiting for an MRI scan but they think I've split the cartlidge collar that the bone plugs into - bit like a giant popper bead and also damaged tendons and muscle.)

[Pete10]

Sorry to hear about your shoulder John, look forward to having a chat, Best, Peter

[Johnny B]

I sold my round last year due to having to relocate due to circumstances within the family.

I knew of a chap that was buying up as much work as he could, so I didn't need to advertise the round as being for sale, which was an advantage for me as I needed  a quick and smooth sale. That aside, this is what I did ...

I wrote out an up to date book of all customer addresses and prices, to be handed over to the buyer on receipt of monies. I had emailed him a summary of how many customers and the turnover they generated beforehand, and we agreed a sale price based upon this.

I drew up a contract outlining the sale, outlining the area I was selling, how many customers and the turnover, and which stated that I relinquished all responsibility for said business and that the buyer assumed all responsibility for same. I took a copy for myself and another for the buyer.

We met, signed both copies of the sale document in each other's presence. He then paid me in full, and I handed over the book.

I then wrote to all customers informing them of the changeover and hand delivered each letter. I also gave the buyer a signed letter to introduce him as the new owner of the business.

I sold off the round in three stages, all to the same guy, using this method each time.

Each time the transactions went like clockwork.

Hope this is helpful.

John  

PS I am sorry that your injury is forcing your decision to sell.
  

        

[John Walker]

Thanks for the very useful info Johnny B.

Your system looks efficient and straightforward which is what I'm looking for.  Once the decision is made as to when I finish I just want a no fuss sale so that I can move on.

cheers
John

[Alistair@AWC]

John,

Have you given any thought to employing and expanding so you can come off the tools?

[Perfect Windows]

John,

If you're retiring, have you considered renting out your round?  While a lump sum may look handy, an income will be even more so. 

Going rate looks to be around 20%.   Assuming your round is monthly and you ended up selling it for 4x monthly value, that'd only be 33% of its annual turnover.  That makes 20% every year look a great deal healthier.

Additionally, if you should choose to do so, you then have the option to expand the round you are renting. 

The secret would be to make sure of the person to whom you're renting.

Just a thought.  Whatever you decide, good luck.

Vin.

[wightsurf]

Makes me laugh 4x,I know two rounds local to me that went for real money.

[Halfadaylee]

Makes me laugh 4x,I know two rounds local to me that went for real money.

I know I thought 4 times was low.
Hey Vin, want to sell me your round for 4 times. 
Art

[Perfect Windows]

Makes me laugh 4x,I know two rounds local to me that went for real money.

It might make you laugh; it makes me laugh, too, but it seems to be the amount people on here think of as reasonable.

OK, even if it goes for 12x monthly (or 20x or 24x)  you're left with a lump sum rather than an income.  The thought process is the same.

Vin

[Smudger]

Hi Andy

I'm 65 in a few months and damaged my right shoulder last November.  I'm still working but finding it a struggle now. I had intended to keep going for a few more years but the shoulder problem with continuous pain has been the decider.  If I end up having an op I could be out of action for months anyway.

Been WFPing for nearly ten years so have had a good innings.  Just wish I'd started it earlier.

I'm hoping that someone on here has experience of selling a round and can talk me through the best way to do it giving protection to both the buyer and myself.  I would imagine there can be some pitfalls if it's handled wrong.

John

ps.   (My shoulder injury is not WFP related - it's an allotment injury caused by lifting a heavy object that dropped at one end while I was still holding it.  It forced my upper arm bone into my right shoulder socket and made a nasty noise.  Waiting for an MRI scan but they think I've split the cartlidge collar that the bone plugs into - bit like a giant popper bead and also damaged tendons and muscle.)

Sorry to hear you may sell up John - cant help you on the sale but i wish you the best mate.  worringly for me i suffered a simular
accident six weeks ago - not as servere and not effecting work as such - but plays up soon as i try to sleep 

all the best

Darran

[richard jagger]

One needs to get pricing into perspective if you paid 10 x that means no income on the purchase for at least and then you still have the loss of customers by the charge and also maybe a little under priced so there are many factors to bare in mind.Its so easy to say 10x ,5x , 4 x .Price pulled out of heaven .

[PurefectWindowCleaning]

I have sold 2 rounds before, both went smoothly.

1st was for £6000. Wrote each customer a letter explaining my reasons for moving on. Included contact details for new window cleaner. I then gave him the customer list, and said pick as many customers as you like at random, and ill drive you there and introduce you. (visited around 30 customers) This was to prove to him that it was all genuine)
He then paid me half the money, cleaned every house once, then paid me the other half.


2nd was for £400. Again, wrote a letter, introduced him to all the customers, he paid me £200, cleaned every house once, then paid the other £200.

Sorted 

[John Walker]

Sorry to hear you may sell up John - cant help you on the sale but i wish you the best mate.  worringly for me i suffered a simular
accident six weeks ago - not as servere and not effecting work as such - but plays up soon as i try to sleep  

all the best

Darran

Thanks Darran,  Like you, for some odd reason sleeping is the worst part.  I haven't really had a full nights sleep since it happened due to the discomfort.  Doctor hasn't been able to give me a good reason why that might be.  A few of my customers have had shoulder injuries and the sleeping problem seems to be one of the biggest issues.

[daniel worgan]

One needs to get pricing into perspective if you paid 10 x that means no income on the purchase for at least and then you still have the loss of customers by the charge and also maybe a little under priced so there are many factors to bare in mind.Its so easy to say 10x ,5x , 4 x .Price pulled out of heaven .

Why would anyone nowadays sell a mainly guaranteed turnover business for the equivalent of 3 months turnover???
I fail to see any other business selling up for ridiculously low amounts.
Loss of customers due to a sale should be minimal at the very worst if the business has been run correctly and the sale handled properly.
It's not the pricing of rounds that needs to be put into perspective,it is the wc's who undervalue the industry and therefore command lower prices for business sales that need to take a step back and get things into perspective.

[Moderator David@stives]

You are not really spending money buying a round, you are investing your money, when you sell after many years of buying, you make an increased return on your money

You get your original purchase cost back plus the added value due to you growing the round to an increased turnover

[Alex Wingrove]

what is it that your selling?

[Paul Coleman]

One needs to get pricing into perspective if you paid 10 x that means no income on the purchase for at least and then you still have the loss of customers by the charge and also maybe a little under priced so there are many factors to bare in mind.Its so easy to say 10x ,5x , 4 x .Price pulled out of heaven .

Why would anyone nowadays sell a mainly guaranteed turnover business for the equivalent of 3 months turnover???
I fail to see any other business selling up for ridiculously low amounts.
Loss of customers due to a sale should be minimal at the very worst if the business has been run correctly and the sale handled properly.
It's not the pricing of rounds that needs to be put into perspective,it is the wc's who undervalue the industry and therefore command lower prices for business sales that need to take a step back and get things into perspective.

I think the difference with window cleaning rounds are:- (1)  the chances are that a percentage of customers will cancel or the cleaner will cancel some of the more "high maintenance"/ lower priced customers (2) the chances are that the buyer will be doing all the work himself.

[John Walker]

what is it that your selling?

If I do opt for selling up it will be what I call my 'solid gold' domestic customers on my East Kent rounds. 

I have already pruned out the non profitable/dificult ones leaving around £10500 p.a. of mainly long term customers (some nearly 10 years).  In addition to the £10500 p.a. from these customers there will be gutter/facia cleaning and conservatory roof jobs for the taking.

John