Business valuation....

[griffo75]

Hi,

Recently joined to get some advice. Have been running a WFP business since 2009 and due to forthcoming relocation am thinking of selling up, wondered if anyone can give me an idea of the value of my round and how I'd go about selling it?

Based in SW London, last 3 years averaged £37k pa as a one man band. All accounts prepared by accountant.

Round is "clean" ie all are good largely residential customers. Round is in a tight geographical area- ie limited travel between jobs.

Hope you can help!

 

[CMRwindowcleaning]

Pretty sure rounds go for about 3-4x monthly value! If your in south west London and looking for a sale I might well be interested?!?

 

[Taxlossloz]

You need to be clear on the 37 k - is it turnover or net profit before tax

 

[steve garwood]

4 times the value of the round is standard procedure

 

[TolishAPurd]

Sounds like a very good established round, you should be able to get 4 or 5x the monthly round.

 

[Taxlossloz]

If it's 37 k profit with van ,equipment , name , contacts Market it well you will get a lot for it - in 6 month someone gets there money back that's a good investment

I would go down that route then if not sell it to a window cleaner for 5 cleans

 

[Eviestevie]

Id say you'd get a bit more

If it's that established and good priced then someone is going to walk straight into a 37k a year job!

I fink a 25,000 asking price would be very tempting for someone to snap your hand off

Let's not forget a lot of businesses take years to pay for there selves so still cheap

 

[Taxlossloz]

Exactly I would not be thinking 3,4,5 monthly cleans You can even get a marketing company to tart it up and sell it for you

 

[Green Pro Clean Ltd]

I'm not clear on what you are selling.

Is it just the round or is it the business with all the trimmings?

Business name, web site, telephone number, emails, vehicles, tools etc?

Selling a round is one thing selling a turn key business is another altogether.

Round only established 6 years with three years of accountant books and bank statements to prove it I say at least six months value.

Entire business at least 12 months plus value of any equipment on top.

 

[Green Pro Clean Ltd]

But also never forget that the value of any item is never more than someone is willing to pay for it.

 

[griffo75]

You need to be clear on the 37 k - is it turnover or net profit before tax

Thanks for the response, it's turnover,

 

[griffo75]

thanks for all your help everyone, it's given me a great deal to think about.

 

[pauljohnson]

But also never forget that the value of any item is never more than someone is willing to pay for it.

I would be more interested in the net profit as this is the key factor

 

[Green Pro Clean Ltd]

I would be more interested in the net profit as this is the key factor

An Important factor yes but not the key factor.

Your looking to buy a window cleaning round / business and you see two listed for sale in your area on let's say Gumtree.

Both have a net profit claim of £30'000

Round A has been going for 10 years, is all trad with cash collections and the 'client list' is some note pads with first names and a street address. All business comes from word of mouth. Has no company name as it has just been run as 'Dan the window cleaner' will take you round a few customers to show you what's what. Comes with a van with a ladder on the roof.

Round B has been going 1 year, is WFP, no cash collecting as all pay online, all records are kept on GoCardles (or George or similar) records are first and last name, address, mobile number and email address. Comes with a company name, strong website with good page rankings and a good Facebook page to match. Will work the round with you for the first clean to ensure a smooth handover. Clean and tidy van with a good WFP set up in the back, nicely sign written and they'll even toss in a couple of t-shirts to round it off.

By your logic @pauljohnson it should matter not weather you choose A or B as the 'key' factor is still the same.

Personally I would not give A the time of day. B would be the only serious consideration in my opinion.