[Ian Rochester]

We are in the process of moving into the domestic contract cleaning market, we already do a little bit but we are primarily commercial office cleaning, carpet cleaning and window cleaning, as well as a few other odds and sods.

I have been offered, for a very reasonable price, an existing domestic contract cleaning business that is run by two women who have fallen out in a big way and now want to go their separate ways.

One wants out altogether and the other would like to come and work for our business and bring her existing work along to us, currently 60 hrs a week @ £10.00 hr.

Now here's the question, for tax purposes I want to buy their business off them, lock, stock and barrel, along with their trading name so that I can then trade the domestic side of our business under their name, which is not VAT liable!

I need to draw up an agreement and get them to sign over the business to me, excluding any liabilities, etc.

Has anyone done this before, how do you go about it and who would I need to speak to to draw up an agreement, or has anyone got a copy of an agreement.

Regards

Ian

ian@lionheartcleaning.co.uk

[Bertie Boo]

Ian

I dont know if this is of any help to you or not, but one thing i picked up on very quickly when i started domestic cleaning is that people will only employ cleaners they are 110% happy with and if they aren't happy for any reason they WILL change.

I am lucky because i get on with my clients and working alone means they always get me and not a different cleaner each time. However, as domestic work is usually non-contractual, i do wonder what g'tee you have that after buying this work you will still have the customers that come with you. Are the customers all happy about this? What do they think of the current standard of work being carried out? What do they think about the feud between the two partners?

It is the word 'contract' in your original posting that has prompted me to reply because, apart from t+c's that state what notice is required etc. to discontinue the service, most domestic cleaning is non-contractual.

Also, what sort of reputation does this domestic cleaning company have?

Stephen

[Ian Rochester]

Bertie,

Thanks for your concern, my wording was probably not the best.  I'm basically taking over their business and giving them a small pay out for the assets of the business, the actual work is coming to me for free, because as you said there are no contracts and people are free to choose who they want.

It is a similar set up in the window cleaning business, however they still appear to get up to 3 x the monthly value of their domestic business.  It's ultimately about supply and demand.

The actual cleaners have an excellent reputation, I used them as subbies on some commercial work when they were first starting out and they were very good and professional.  It's actually a shame that they are giving it up as I think they were both more than capable of making it work well. 

However, their demise should hopefully be to our gain, and I have first refusal of the work.  Our own cleaners (currently 4 women) work to a very high standard and have excellent interpersonal skills, it's just that I have never really targeted the domestic cleaning market in the past.  The opportunity has now arisen and I intend to have a look at it as it fits nicely into our portfolio.

[Art]

Ian,

 Try this link mate http://www.employment-solicitors.co.uk/Restrictive%20Covenants.htm

Arthur

[Ian Rochester]

Arthur,

Cheers