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Squeegee Dan

Selling a share of the business

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Squeegee Dan

Hi all.

 

Has anyone on here sold a share of their business?

I have a friend that wants to buy into my company as a 50% share holder and work together.

But I have no idea how to put a price on my business.

Any ideas?

 

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Lawrence Morgan

Has he got any experience as a window cleaner? If not don't sell him half since you be doing more work and training him and if he finds out he dose not like window cleaning you could be forced to buy back control etc.

The old saying goes "there are no friends In business" . From my experiences working with friends can some times be the fastest way to ruin a friendship.

But your call

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Iron Giant

I wouldn't let him buy in at all you have done all the hard work so far and he wants to jump on board, He might be a good mate but could be terrible business partner, I would let him work for you as a trial a odd day here and their over a few weeks maybe as only then will you see what he is really like to work with he might reveal just how good or bad he is, You might find you don't want to work with him as you are happy to be on your own.

Bottom line its your business and you have full control he might want half the takings and not want to pay the expenses of the van etc because its your van, Once you give your full control up their is no turning back 

 

Edited by Iron Giant

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Green Pro Clean Ltd

The negatives out weigh the positives. 

 

If you want him on board take him on as an employee. Still only pay him what he's worth . 

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Dan Paton

If it's a residual business with a proper structure and directors, managers and scores of employees turning over millions then it's a real possibility as this happens all the time. However I'm guessing it's not. So my answer would be to steer well clear. Why would you want to sell half your income ?

 

 

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Squeegee Dan

Thanks for all the feedback so far...

 

We've been doing a fair bit of work together for the past few months... and have a great working relationship.

 

I'm starting uni next week and need someone to to help me keep on top of things and haven't been able to find anyone that can replace me as the chief as no one seems to love my business the way I do.

 

By bringing him in as a partner I think he'd be more professional and determine to do well for both of us.

 

My biggest issue is pricing the business...

I currently have about 4000 A month in window cleaning and have regular carpet cleaning, pressure washing and gutters etc.

 

And it's been running since 2009

 

Any ideas?

 

 

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Part Timer

I have no idea why you want to go to university when you can make £1k a week doing what you are doing, but each to their own. I Would've thought circa £15k, + half the value of your assets, Van, poles etc, would be a fair price for half your business if he is as good as you say he is. 

Make sure you define the point where he does join you so you know what cash is yours. 

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Cghwindowcleaning

I personally would never sell off half my business unless I was really desperate which would never be likely.

But lets say your mate buys in what happens when you go to uni?Do you expect him to do all the work and pay you half?as i don't thing he would agree to that.

 

If you are serious like part timer said 6x the value at least for half the turn over so around 12k+ and half the value of assets.

Does the business have any debt or finance?this will effect the value.

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Squeegee Dan

Lol... your right it's not all aboit the money... I've been doing this a while and I just want a change. And an opitunity to move to a nice hot place with holiday pay and the ability to switch off from work at 5.30...

So your looking about 20-25k

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Iron Giant

Holiday pay is the only benefit you may get out of been employed, You could be deluding yourself thinking that you switch off from work in a employed role, I can't judge your personal circumstances as I don't know you but I would never go back to been employed and been told what to do when to do it. 

I come home every night well before 5pm and can easily switch off my phone goes on silent and gets put to one side and most of my clients  pay via direct debit its my choice to do what I want to do. 

I would give it some serious consideration and seek legal advice if you go ahead the 15-20k might send him running for the hills :1f602:

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Green Pro Clean Ltd

A decade or so back when I started my first round and still had just a fist full of customers I asked friends if they wanted to go in at an equal split.  They all had every excuse under the sun bit usually blamed it on the wife. 

 

A year later when I was at 300 clients and climbing, driving a new (ish) motor and booking holidays they all wanted to get in on it. 

 

This left some bitter feelings to be honest when I turned them down. 

 

Remember.. your not just giving up half of everything you have.... you're giving up half of everything your ever going to have. 

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peter rogers

you could change your whole business  to ltd sell him a percentage   and he would manage and grow the carpet cleaning  side  or something     can work 

 

 

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peter rogers

would rather share something big    than keep to myself and  have all the  weight on your shoulders     two minds better than one     expand   build and flourish into something great

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Squeegee Dan

Thanks everyone for the advice... I'm going to get the business valued with my accountant. They have someone to do it there.
Thank you for the support Peter Rogers.
THL4KEL - I'm going to be studying mechanical engineering at uni

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Squeegee Dan

The plan is to let him expand the Window cleaning round will I concentrate my efforts on building up a good reputation in caroet cleaning and pressure washing

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Green Pro Clean Ltd
On 02/10/2017 at 07:55, Squeegee Dan said:

I'm going to get the business valued with my accountant. They have someone to do it there.

There are only 2 values.

1: The value you decide yoi want as a selller

2: The value he is willing to pay as a buyer. 

 

Nothing else has any relevance. 

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CleanerWindows

Either sell the whole shabang or not at all. And remember the old9 saying! Whilst the cats away (uni) the mice will....... say nothing about new work. Tell custys you've sold him all the business. Ruin your tools etc etc. Proper friendship minefield is that.

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