How to value round

[A S]

Abt 100 customers
£15000 worth work a year at least
Mixture of monthly, 6 wkly, qtrly cleans.
All wfp
Any tips for valuing would be appreciated.
Thanks

 

[Jaygti]

4-8 times monthly value.
Depends on quality of the work and how saturated the area is with cleaners.
If it’s easy to pick up work then there’s no point buying.

 

[Part Timer]

Anything from 3 to 8 times average monthly turnover, depending on other factors

 

[Windowcleaningfleet]

Abt 100 customers
£15000 worth work a year at least
Mixture of monthly, 6 wkly, qtrly cleans.
All wfp
Any tips for valuing would be appreciated.
Thanks

How long has the round been established for ?
Whats total value of the 100 customers per month?
Is it all online or cash?

Ill give you a figure of wht you should sell for once i know the above

 

[A S]

Roughly 1200 mth
10 years
Online mainly

 

[Windowcleaningfleet]

Roughly 1200 mth
10 years
Online mainly

Worth 6/7x if you had it for 10 years - this is just my opinion though

 

[scottish cleaning service]

I would say you are looking at around £8k to £10k for it. That's what I would expect to pay for it. fwiw

 

[Pjj]

The old adage something is only worth what someone is willing to pay comes to mind , I personally feel anything more than 4 times monthly turnover is un realistic all you are buying is a list of names , the new purchaser could loose the lot within a few months and who is prepared to work for 6-10 months and not earn anything, I am in the process of selling off some work all very compact for 4 x I feel that’s fair to me and the purchaser it’s mainly well established up to 22 years .

 

[scottish cleaning service]

The old adage something is only worth what someone is willing to pay comes to mind , I personally feel anything more than 4 times monthly turnover is un realistic all you are buying is a list of names , the new purchaser could loose the lot within a few months and who is prepared to work for 6-10 months and not earn anything, I am in the process of selling off some work all very compact for 4 x I feel that’s fair to me and the purchaser it’s mainly well established up to 22 years .

Depends how much the opposition want the work. WFP work has been growing all the time down south but only just taking a hold up here. Still think a one man band is the way to go rather than more vans. If one gets too big then they just reduce their customers and keep the good ones. After a few years one has a fantastic business and ticks along nicely what I'm reaching for. Customers believe we need them alot more than we do, where, when established its the other way round. It all comes down to debt. If you pay cash and don't take on no debt (like a new van) then one is sitting pretty. Take this morning for instant, Paint shop for a customer I'm building the fence for and then a few hours on the glass, home for lunch and trousered over a ton, what other job could bring in that amount for 2'5 hrs work. ?

 

[JustGotPaid]

The old adage something is only worth what someone is willing to pay comes to mind , I personally feel anything more than 4 times monthly turnover is un realistic all you are buying is a list of names , the new purchaser could loose the lot within a few months and who is prepared to work for 6-10 months and not earn anything, I am in the process of selling off some work all very compact for 4 x I feel that’s fair to me and the purchaser it’s mainly well established up to 22 years .

I bought a domestic cleaning business years ago. A lot of customers took the change of ownership as a good opportunity to steal the cleaner, or to stop the arrangement. A couple of cleaners left as well.
As you said. All you are buying is a list of names, who have no obligation to continue.

 

[Mcsandlaly]

in the current climate, four cleans sounds reasonable up to six max.

 

[mike007]

I bought a domestic cleaning business years ago. A lot of customers took the change of ownership as a good opportunity to steal the cleaner, or to stop the arrangement. A couple of cleaners left as well.
As you said. All you are buying is a list of names, who have no obligation to continue.

Essentially you are buying addresses and "goodwill". And the goodwill is the previous owners relationship with his customers not yours.

 

[Deleted member 13647]

Abt 100 customers
£15000 worth work a year at least
Mixture of monthly, 6 wkly, qtrly cleans.
All wfp
Any tips for valuing would be appreciated.
Thanks

Window cleaners tend to price at 3 to 10x monthly value. How ever the correct way to price any business is about 7 times the net profit margin. So if you do 50k a year then you probably make 20k if doing a profit split.

 

[Deleted member 13647]

Abt 100 customers
£15000 worth work a year at least
Mixture of monthly, 6 wkly, qtrly cleans.
All wfp
Any tips for valuing would be appreciated.
Thanks

How long has the round been established for ?
Whats total value of the 100 customers per month?
Is it all online or cash?

Ill give you a figure of wht you should sell for once i know the above

What counts here is the net profit margin ??

 

[ched999uk]

What counts here is the net profit margin ??

It's not quite that simple. Remember you would only be buying the work not the actual business, so your overheads will be different to the seller. So therefore it's not about profit it's about the quality of the customers, what they are currently being charged, how compact the work is, to name but a few of the important things.

It's only good will that would be bought, so no really anything tangible!

 

[Part Timer]

What counts here is the net profit margin ??

How do you quantify the net profit margin, someone living close by, who is a sole trader, will have a far bigger net profit than a multi van business that has to travel.

 

[Yogi1872]

It all depends on who's looking for work at the time of sale, if no ones looking near you then your not going to get what it's worth. The people your ideal targeting is people who's not got enough work, realisticly they haven't thousands of pounds kicking about to buy the work. The people who already have enough work will only be interested if its cheap.

When I had to buy runs I never paid the full amount upfront. Always half, then told them the other half would be paid when I had done it to make sure everything's as he said. I met a guy in subway to buy a run and he said that he was taking a risk as I might not pay the other half of the money. I said I've just handed you 2k and you have given me a sheet of paper with some address's on it which looking at it has atleast 1 house on it that I already do and have done for over a year. I said anyone looking in on this from the outside would say I'm the one who's taking the risk, you could be giving me made up addreses for all I know. He told me all had been done 4 weeks ago but they hadn't been done in months when I went to do them. They were like doing new houses. Some had a new window cleaner. Think it was 1k or £1200 I gave him after it and told him that was more than fair because of the houses lost and they time it took to do them as he wasn't honest at the start about how long ago they were done.

 

[Nosey]

When I’ve sold a round I’ve listed it on gumtree. Always get a lot of interest in my area. The thing is you can generally tell who has a good attitude or not from the first contact they make with you. I would only be willing to let my work go to someone I feel will do a good job and trusting. I’ve always valued my work at 4 to 5 times the monthly worth. Then I’ve drove them round the work giving them a breakdown of what costs what and any relevant info that’s included with the work etc.. In my experience they’ve always had a little think about it before making the decision and usually come back with a counter offer. Once agreed on the price I’ve got full payment off them and taken them round straight after and introduced them to the new customers and handed other a hand over letter which has all the new cleaners details and a thank you message from me. I obviously given the full customer list to the buyer and any customer contact details. Any customers that wasn’t home a letter has been posted. Never been a problem and never had any comebacks. A buyer can always expect to lose a bit of work. But that really depends on the set up of the existing window cleaner and new one. If everything is to stay the same apart from changing the bank details who the money is paid too. There is no reason why it shouldn’t be a smooth process.

 

[Yogi1872]

When I had to get rid of work I've also let people pay it at £50 a week. Not the preferred option but when I've sold work it wasn't because I needed the money for a specific reason so it didn't matter if I got it all at once or paid up. There obviously is a risk in them not paying you but 90% of people aren't scum bags and pay what there due people. No ones ever not paid me doing it this way. Weekly amount has to be something they can realisticly afford though so they can stick to it as realisticly they hold all the aces after a few months. If they didn't pay your limited to what you can do. I have read people say they would threaten them with violence etc but thats being a bully tbh, I've never hit anyone first in my life, (outwith sports), as its bullying tbh and don't intend changing that.