[chosker]

We are considering selling off about 5/6 of our commercial contracts in the Herts area. The jobs range in length from 10-20 hours per week and there are extras such as window and carpet cleaning for most of them.

How much would this be worth.. any ideas?

Thanks

Claire

[turneylogan]

Accountants will tell you that there is no value in "good will".   I would suggest that the value to a prospective purchaser would be in the un-expired portion of the contract and the probability of the customer renewing under the new management.

Not sure whether that is any help or not!

[DREAM CLEAN]

Hi Chosker,

you still looking to sell the contracts?

[Tim Downer]

Might be interested too......but would be interesting to hear from someone who has sold / brought contracts and how the figures were arrived at.

Tim

[cavanagh_matthew@y]

hi, have you sold any of your contracts yet? would be interestd if the price is good?
can u let me know?

regards

matt

[Colin Stokes]

We would certainly be interested as well if you are looking to sell.

In our (limited) experience price would be twice the gross PROFIT over a year with maybe a pro rata discount depending on length of contract left. 

It depends how confident the purchaser is in matching or improving the service and whether your pricing can be accomadated by the purchaser.

In our opinion anyway!!

[chosker]

Hey guys, yes we are still thinking about it and i will let you know prices once i've got some advice on what its worth, if anything at all!

Wqatch this space i guess!

[chosker]

Guys, if you're interested, give me your email addresses / phone numbers and we can discuss directly.

I know if your selling a company the going rate is aprox twice the yearly profit but for just a few jobs not sure.

If we don't sell the clients we will only run the company down over time, so it is possible we can sell the website, company name (megaclean commercial ltd) and anything we have left over from it, ie contacts, internet and yp/thomson advertising etc.

My email address for anyone who might be interested is claire@megacleancommercial.co.uk

All suggestions / offers welcome!

n.b. the cleaners for the jobs we have are all little stars... so far anyway! a lot of the jobs have extras going as well, products, window and carpet cleaning etc. we would be hapy to leave all current supplies behind for the person who wants to buy them.

Again, just to reiterate, this is a possible sale not a definate . We are losing the guy from our office who deals with the commercial side and are 90% sure we want to sell, but there is a small chance we wont. obviously will keep any buyers updated. Thought it best to be honest!!

[Tim Downer]

Is that right? Twice the yearly profit to buy a company as a rule?
So you wouldnt make any profit till year 3!!

Chuffin hell 


Tim

[Tim Downer]

By the way Chosker......wasn't downing what you are selling, as you are not selling a whole company, just making a comment on the 2 years profit thingy and making no profit till year 3   

Tim

[Tim Downer]

Am i making any sense or digging myself deeper? Think i had better get a coffee   

Tim

[chosker]

Hee hee... no offense taken and I know what you mean, it does seem a lot. I did notice that someone else had written the same thing half way up the page, and my accountant backed it up when i asked her, although she said every business is different. Hmm... will look into all this more!

Claire

[Tim Downer]

        

[sparklecleaning]

       

He/She let you of lightly!