[DREAM CLEAN]

evening all,

 I've been offered a domestic cleaning company to buy , it is not my field but it's a way to expand,

The people want 20k for it

comes with a 4 year old van

20hr week member of staff

2.6k month turn over

3 month hand over

30% is cash paid

25hrs a week

do you think it's worth it?

[martin19842]

hi there

nick,

on the surface NO wouldnt go there

how stable and secure is the £2.6K per month, i would suggest not rock solid.

regards

martin

[DREAM CLEAN]

Hi Martin,

yea feel the same but sometimes you need another opinion

think the offer price will be low

Ni ck

[Art]

You could do alot of advertising with 20K and for a fraction of that it wouldn't be to difficult to pick up 25 hours a week of domestics.

Wouldn't touch it personally

[Fox]

If you want to grow quickly and are interested in this area then aquasition is the way to do it, there is nothing wrong in buying to grow you just need to cover yourself.

I am not sure on the price as I am not an expert.  What I would do though is ask to take a look at the last 3 to 5 years accounts and your accountant would then be able to put a price on it.

Find out the essential running costs eg:  how much is the P&EL, vehicle running costs, chemicals etc.

The most important thing is to make sure signed contracts are in place for each and every client. 

When buying a company work on losing 30% of the current customers through the change but if the right contract is in place you will have the protection of the notice period on these.

Hope this has helped
Fox

[angela stone]

 I bought a bar in spain with lots of apparent "good will" and a very good turnover.  The bar cost me 59,000 euros and not one of the old customers came to try us out.  When we sold - all our customers never went back either.


Not the same thing as such but the principle is there.  Through experience I would be very wary about paying thousands for a ready made clientele in any field to be honest - hence why I have started from scratch this time.

I have been going since the 6th march and now have 7 customers - 2 more quotes to do this week and working about 10 hours a week at the moment.  So I don't think with your experience in the commercial field that you would find it difficult to achieve those hours by targetting that market and keeping your 20k in the bank!

[GeoffDerby]

As a ball park the price you should be considering paying should be closer £10 to £12 K, plus equipment and depending on accounts, proffit and debts
Kind regards
Geoff

[DREAM CLEAN]

well I offered 7k with a month hand over 4k straight away then 3k at the end of the month.
they turned me down.
so spent 350 on yell.com and won 4 new jobs and poss new build on way.


thanks for advise

[GeoffDerby]

Seems to be Yell.com works for you and this is a better deal overall, Nice one Geoff