What should I pay for a round

[Garyj]

HI

I have the chance of buying a round that's been established for a number of years, approx £3000  a month revenue with approx 250 customers, all quite closely grouped what's the going rate for a round like this.

 

[Nudel]

Back in the day a reasonable agreement was usually three months worth of revenue, so £9000. These days they sometimes go for 10 times monthly revenue.

There are so many factors to account for, where in the country are they located, are there many bidders for the round, are the customers all on gocardless or do you have to collect manually, is a van mounted system needed, how long does the poles need to be, etc. etc.

I feel if its an established round dating several years back, the cleaner have feelings for the customers. Thus would rather sell it to someone who could take good care of the route, than focus on price alone.

I bought an established company up here a few years back, best decision I made.

 

[Ana]

Vast majority of my work has been brought. Some has had issues with people being included that clearly shouldn't have been to make up numbers but overall it's all been fine and I've earned all my money back easy now. Depends on who you buy it from I suppose and how transparent they are.

ive brought from three individuals, first one was the guy who included people who hadn't paid HIM for SIX months! They still got included and he expected me to get HIS money! Thankfully, this was only five or six customers, the rest was fine and will be done next week. Second and third guys work has been seamless.

still worthwhile buying work ime, plus you get plenty of walk ups for free. Price was 3 or 4x the monthly price which is reasonable.

 

[Part Timer]

If all customers are listed and accounts available to prove the financial claims then you'll be asked to pay minimum £15k, possibly up to £24k

 

[Korev]

London prices, a round is £25 for 4 drinks. 'Up North' £10.

Depends on how profitable the round is rather than the 39k turnover.
Does it take 24hours a week or 45 hours a week to complete.
Is it compact or are there lots of miles to be covered.
What is the average debtor days figure, are they set up to pay direct to your bank.
What will be the cost of equipment you need to invest in.
There a a few websites that have rounds for sale check these out to get a rough idea.

Also involve an accountant to run over the past few years books.
They can advise you if its a worthwhile investment and give you a guide price.
And involve a solicitor to draw up a contract for the purchase, with the usual clauses barring the vendor from stealing the customers back or operating as a window cleaner within a 10 mile radius etc.

 

[Part Timer]

And involve a solicitor to draw up a contract for the purchase, with the usual clauses barring the vendor from stealing the customers back or operating as a window cleaner within a 10 mile radius etc.

This wouldn't be enforceable, you can only stop them approaching the customers you have bought. 

 

[Korev]

This wouldn't be enforceable, you can only stop them approaching the customers you have bought. 

It was just an example of what a solicitor might add in the way of a restraint of trade clause in a contract. You are correct in that it may not be enforceable due to competition laws.

However a colleague who purchased a part round did have such a restraint included which was a 5 mile exclusion zone where the vendor would not carry out window cleaning for a set amount of time. I doubt a solicitor would include this if they thought a court would not find it a reasonable protection of the buyers business interests.

Anyhow the main point of the reply was to involve a solicitor before completing the purchase, the fee paid can save a lot of headaches at a later date.