Advice needed please!

Hello everyone,

I would be very grateful for any advice, comments and thoughts on the following. 

I am in the process of selling my window cleaning round, all done Traditional for the past 10 years. I have been showing the prospective buyer around for nearly three months to date. Last week we agreed upon a sale price for the business, we shook hands and I asked him if he was happy with everything to which he replied "yes".

Today, I get a text saying he's not comfortable paying the agreed price because there are no guarantees and it's a lot of money to lay out. I fully understand that, and I appreciate his concern. Nothing is certain in this business. He seemed happy, but now it looks like he's going back on our agreement.

I'd like to hear from anyone who's had a similar experience and how they arrived at a compromise with their buyer. I must sell the business as I'm moving away. He has been a bit flaky at times, but I understand it's a big decision. However, why shake on a deal when there's an issue lurking in the background? He's not very communicative which has made things more difficult.

I'm starting to panic. Advice need please. Thank you. 

Just from my own experience in the past. When I looked to buy before I was asked to pay a £1000 deposit to confirm the sincerity of my interest. I did, but there was another person already interested, and he eventually took the round. I got my deposit back. 

Hand shake is nothing really, unfortunately. 

I think the only thing to do is pick up the 'phone (when you're in the right frame of mind).

Any chance you postpone the move until you have a buyer who has paid you?

He may be waiting for you to leave then pounce on the work.

I am genuinely sorry to hear what’s happened but I must say that you have to always protect your work.

I sell work, agree price, receive money, then, and only once received money will I show the work to the buyer and or print out of addresses, not the other way around.

LAMS said:

Any chance you postpone the move until you have a buyer who has paid you?

He may be waiting for you to leave then pounce on the work.

I am genuinely sorry to hear what’s happened but I must say that you have to always protect your work.

I sell work, agree price, receive money, then, and only once received money will I show the work to the buyer and or print out of addresses, not the other way around.

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Thanks for the reply LAMS,

I don't think he'll do that because he (the buyer) also works with a really close mate of mine. I've been showing him around for nearly three months so he's seen most of the round. I agreed to do it that way because that's how other window cleaners I know and have spoken to did it when they either bought or sold businesses. You can't really ask for money upfront without showing someone your round. What if they change their mind and want their money back?

They can’t change there mind.

That way your time isn’t wasted.

Agree price, both sign contract, exchange money and round details, do all this at the same time. 

Finished.

Tell him thanks for his time and wish him luck.  Stand firm. He can take it or leave it. 

I bet he's playing you and hasnt got the money. 

I’ve no experience buying or selling work, but it smells of shyte to me. Him working with a close friend doesn’t mean he’s not waiting to take your work when you leave. I would personally sell to someone else.

I totally agree. Sell to someone else if you can. 

When I saw the 3 months showing him I smelt a rat hes 100% trying to fuk you over when selling a round for sure introduce him to the customer and if hes genuinely interested take a deposit off him and a timeline that suits you for full payment ie tops 2 weeks it gives you time to look elsewhere if they drop out.

It was your hard work i take it that built up the round in question. Dont let anyone just rob it off you. be straight up with the bloke, if he dont want it, readvertise it. Hey, you never know, might be someone on here interested in it.

Just say something along the lines of 'well window cleaning isn't for everyone, I understand if you don't want to work for yourself, I'll pass the opportunity to somebody else'.  If he then says he is still interested, then say he has got 7 days to hand over the money otherwise you will sell it to somebody else.  

It sounds like he is like the majority of the population, they want all of the rewards for ZERO risk.  Just move on.  Oh and remember, when it comes to money, nobody is your friend, trust no one   ; )

Better off selling him the round and then spending 6 weeks with him introducing him to the clients. 

Draw up a contract that for everyone he loses in the first year you will pay him some money back.

Hope you get sorted mate , i have sold rounds and part off in the past ; once for several thousands of pounds . On every occasion i never showed the buyer the round until i had the money .

There are believe it or not time wasters and under hand folk out there. 

I really hope it works out in the end for you.

Ive sold 3 rounds in past years , 2 in england & 1 in Scotland. At no point have i parted with 'names & contact info' until asking price & written agreement signed by both parties, also if they somehow lose customers thats down to them as every job was 100% good when passing over. Trust no one .. then no worries .      

scottish cleaning service said:

Draw up a contract that for everyone he loses in the first year you will pay him some money back.

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That’s a really bad idea! It’s not his problem if the new guy loses customers. 

He might not do a good job, not turn up when he says etc etc

Oli said:

That’s a really bad idea! It’s not his problem if the new guy loses customers. 

He might not do a good job, not turn up when he says etc etc

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Just shows how little you understand regarding business. These contracts are set up when anyone sells a business. The reason being is two fold, it shows the seller has not fabricated his customer base to boost the price. The other reason is to protect the buyer because the seller could return and try and poach all his old customers back over to him again if his plan doesn't work out which happened on this forum about 10 months ago. In court at the moment is Mike Lynch who sold Autonomy to HP and they now believe he fabricated his sale figures. When Tom Farmer sold Kwikfit the contract stated he was not allowed to open or be involved in that type of business for 10 years. Selling a small business is exactly the same principle as selling a billion dollar business if anyone disputes this then I would like to know why. Business law is not that complicated, all one does is follow precedents set down in history.

scottish cleaning service said:

Just shows how little you understand regarding business. These contracts are set up when anyone sells a business. The reason being is two fold, it shows the seller has not fabricated his customer base to boost the price. The other reason is to protect the buyer because the seller could return and try and poach all his old customers back over to him again if his plan doesn't work out which happened on this forum about 10 months ago. In court at the moment is Mike Lynch who sold Autonomy to HP and they now believe he fabricated his sale figures. When Tom Farmer sold Kwikfit the contract stated he was not allowed to open or be involved in that type of business for 10 years. Selling a small business is exactly the same principle as selling a billion dollar business if anyone disputes this then I would like to know why. Business law is not that complicated, all one does is follow precedents set down in history.

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Fabricating the customer base is a little different with a window cleaning round and that’s not what we’re talking about. Working out what a round will make is simple maths, If I say the round does £2k per month and I take you round and we do 200 customers at £10 each that shows you what the round makes, easy!  

Has anyone that’s actually sold a round signed a contract with the buyer telling them for everyone he loses in the first year they’ll pay him some back??

Signing something saying you won’t poach the customers back at a later date however is different matter