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Re: buisness value
« Reply #20 on: February 16, 2013, 09:38:22 am »
soapy, i know what your saying ,but if i were to buy a window round i would expect to pay 2 to 4 times the monthly turnover .so with that principle the buisness would be worth 30 to 40 k

You never said what the turnover is.  My point is that without seeing at least the last 2 - 3 years accounts and looking at any contracts that may be in place it would be impossible to say what someone might pay.

AuRavelling79

  • Posts: 25403
Re: buisness value
« Reply #21 on: February 17, 2013, 12:44:08 pm »
Recently A sole trader business was sold  into a limited window cleaning business.

The way they come up with the figure which was

The Net Profit ( After all deductions, wages, admin costs, depreciation, etc) for the last 2 years divided by 2, to give an average Net, this was approx 25%of the Gross.

Then £50k was taken off this figure, as that what it would cost for a manager to run that business.

After that the figure was x by a multiple of 1.5 that was used to come up with a realistic figure of the business's worth


That doesn't make sense to me Dave ...
It's a game of three halves!

keyser soze

  • Posts: 1694
Re: buisness value
« Reply #22 on: February 17, 2013, 03:40:50 pm »
70k profit per annum with contract in place for 3 years i reckon 70k is the worth , dont slate me lol

Johnny B

  • Posts: 2385
Re: buisness value
« Reply #23 on: February 17, 2013, 04:34:14 pm »
To the OP, you have all the facts and figures, and know how long the work has been established.

How much would you pay for it?

John.
Being diplomatic is being able to tell someone to go to hell in such a way that they look forward to the trip.

kenny bald

  • Posts: 14
Re: buisness value
« Reply #24 on: February 19, 2013, 11:39:06 pm »
Hi Edward1
If you are thinking of selling please get in touch. k.bald.kb@gmail.com