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RPCCS

  • Posts: 973
Valuation of round
« on: May 01, 2018, 08:48:42 am »
What’s the current going rate for a window cleaning round? It used to be  3 times the takings, is it still or has it reduced?
Cheers Rich

Dry Clean

  • Posts: 8865
Re: Valuation of round
« Reply #1 on: May 01, 2018, 09:04:37 am »
Depends on the quality of the work, well priced handy work will always be worth more than cheap knock them out quick work.

RPCCS

  • Posts: 973
Re: Valuation of round
« Reply #2 on: May 01, 2018, 09:57:40 am »
Obviously the better the work the better the price. Not looking to sell just after an average rate 2× 3× or more???
Cheers Rich

Marc Stock

Re: Valuation of round
« Reply #3 on: May 01, 2018, 10:33:40 am »
Essentially you are selling goodwill. To value the goodwill you need to know what the actual turnover of your business was in one year.

I use the following forumla.

Actual Year Revenue/12 * 9

So if your window cleaning round brought in £30,000 last year and you can prove that by showing accounts and tax returns, id estimate it to be worth approx £22,000, but of course it depends what someone is willing to pay for it and expect to haggle a bit on the price.

However,  if its just a list of customers, expect only £10k for 30ks worth of work, and essentially thats what most window cleaners have, just a list of custies with no proof of actual revenue unfortunately, which is mostly what i have experienced.

NWH

  • Posts: 16952
Re: Valuation of round
« Reply #4 on: May 01, 2018, 11:05:53 am »
😂 here we go again 3-4 times the monthly take,no thanks for me then I know if someone’s clued up with WFpole what they’ll earn over a year and it’s worth way way more than 3 xs to anyone. As said depends completely on the quality of work if I ever sold it I’d do my best for them so that they kept 95% of it.

NWH

  • Posts: 16952
Re: Valuation of round
« Reply #5 on: May 01, 2018, 11:08:24 am »
I’d want enough for a 6 month cruise port out starboard hone with outside cabin please,+ spends 😂 at least.

RPCCS

  • Posts: 973
Re: Valuation of round
« Reply #6 on: May 01, 2018, 12:22:56 pm »
Essentially you are selling goodwill. To value the goodwill you need to know what the actual turnover of your business was in one year.

I use the following forumla.

Actual Year Revenue/12 * 9

So if your window cleaning round brought in £30,000 last year and you can prove that by showing accounts and tax returns, id estimate it to be worth approx £22,000, but of course it depends what someone is willing to pay for it and expect to haggle a bit on the price.

However,  if its just a list of customers, expect only £10k for 30ks worth of work, and essentially thats what most window cleaners have, just a list of custies with no proof of actual revenue unfortunately, which is mostly what i have experienced.
I have proof of esrnings , gross turnover and net profit . Established nearly30 years.
Cheers Rich

Marc Stock

Re: Valuation of round
« Reply #7 on: May 01, 2018, 12:31:40 pm »
So what i would do is take the last 6 years (statute of limitations) turnover, add it all up and divide it by 6 again to give you an average year turnover, then divide that by 12 and times by 9 and you have a ballpark on what the round is worth.
Example

Yr 1 25k
Yr 2 32k
Yr3 43k
Yr4 54k
Yr5 64k
Yr6 71k

Average turnover  £48.16k/12*9 £36k

36k ask price for round only.

If you have equipment and plant to sell, of course add this to the figures.

You want to use turnover figures not profit as you are selling revenue and everyones profit will be different in each case.

I think i might become a rounds broker. Lol


֍Winp®oClean֍

  • Posts: 1689
Re: Valuation of round
« Reply #8 on: May 01, 2018, 12:58:02 pm »
It's worth what someone else is willing to pay for it. It will never be worth to another person what it might be to you. People can dream all day long what "their" round might be worth but there is only one way to find out- put it up for sale, you will never get the answer on here.👍
Comfortably Numb!

Arnold Palmer

  • Posts: 20800
Re: Valuation of round
« Reply #9 on: May 01, 2018, 01:32:57 pm »
Actual Year Revenue/12 * 9

I'm going to retire.
#aliens

High-Tower

  • Posts: 250
Re: Valuation of round
« Reply #10 on: May 01, 2018, 02:09:13 pm »
3-5x monthly value is what they generally go for... not many window cleaners would or could shell out £30k no matter what... no matter how established how profitable how well organised the business, it is always a massive risk they could see the purchaser well out of pocket. Smaller rounds sold for £5k get snapped up much more quickly than big rounds.

Stoots

  • Posts: 6213
Re: Valuation of round
« Reply #11 on: May 01, 2018, 02:40:39 pm »
Whatever you want for it.

I wouldn't sell mine for much less than 10x

But I would never sell it. What's the point at the ridiculous prices people are willing to pay

3-4 times lol . If I have 5k of monthly work why would I sell for 15-20k . That's madness, unless of course I had an even better idea to invest the money into.


NWH

  • Posts: 16952
Re: Valuation of round
« Reply #12 on: May 01, 2018, 03:33:05 pm »
Business established in 1962 I let it go for 3x the monthly take 😂 yeah right O I’d let it fall apart rather than let it go for that only to give it to chancer that thought he’d be quids in. They’d get there money back in months not years with some people’s work even if they paid top dollar.

NWH

  • Posts: 16952
Re: Valuation of round
« Reply #13 on: May 01, 2018, 03:34:14 pm »
MInes not a round I don’t go round and round.

Tom-01

  • Posts: 1348
Re: Valuation of round
« Reply #14 on: May 01, 2018, 04:05:05 pm »
MInes not a round I don’t go round and round.

3 years ago I bought a round for £22k to add to our existing business as it was all close to our existing work. It was worth approx £26k per year on paper. Over the time I've lost a few as they have moved, but gained more than lost from neighbours of this work and add-ons, particularly gutter clears (which we promote every year) and GFS cleans.

That work bought is roughly £400 a day to clean one guy on his own. Smaller jobs than our usual work but all very close together so easy to whizz through.

From original meeting to buying the work took just under a year, I got loads of figures from the guy selling and also saw him out and about cleaning the work which helped.

It was a lot of money but worth it in the long run.

Dry Clean

  • Posts: 8865
Re: Valuation of round
« Reply #15 on: May 01, 2018, 04:24:48 pm »
Business established in 1962 I let it go for 3x the monthly take 😂 yeah right O I’d let it fall apart rather than let it go for that only to give it to chancer that thought he’d be quids in. They’d get there money back in months not years with some people’s work even if they paid top dollar.

That's what's known as cutting off your nose to spite your face, if you haven't got anybody to pass the work onto then even
three x monthly would be better than walking away and letting others get it for nothing.
You're not selling a business you are selling a list of customers so the question a buyer would be asking is do I pay and work
x amount of months for nothing or do I spend the x amount of months building my own round.
As has been said above a round is only worth what others are prepared to pay for it.

RPCCS

  • Posts: 973
Re: Valuation of round
« Reply #16 on: May 01, 2018, 05:14:55 pm »
As said, not looking to sell, just getting a figure to.work with. Ii have someone interested in one of my rounds. He wants first choice when I eventually retire, which won't be for another17 years at least. If I live that long lol. Od decide to move on to something else before then.
Cheers Rich

dazmond

  • Posts: 23988
Re: Valuation of round
« Reply #17 on: May 01, 2018, 06:43:11 pm »
the best thing to do is divide your round up into smaller segments.more chance of selling if you sell it in bits....
price higher/work harder!

p1w1

  • Posts: 3873
Re: Valuation of round
« Reply #18 on: May 01, 2018, 07:30:03 pm »
As said, not looking to sell, just getting a figure to.work with. Ii have someone interested in one of my rounds. He wants first choice when I eventually retire, which won't be for another17 years at least. If I live that long lol.
i should worry about it in about 17 years then  ;D

PHILIP HARDY

  • Posts: 189
Re: Valuation of round
« Reply #19 on: May 05, 2018, 10:07:58 am »
Hi, I thought I would bump this thread up again because it has been bothering me all week, I have watched it followed it and read the reply's with some interest (for obvious reasons) I cant help but come to the conclusion that the opening poster has been guilty of a serious misuse of the forum and posters, he started by asking for help with round valuation to which he got some very helpfull worthwhile replys,I even considered replying myself but felt, I couldn't contribute more than had already been offered.
These posters have taken time out of there busy lives and own business's to offer help to what looked a legitimate request with some well intentioned and thought out responses, when it eventually transpires the OP has no intention of retiring or selling up for 17 years making all the replys pointless as who knows what the landscape will be like in 17 years time :o
If people post threads which are just a waste of good peoples time ,when ever a genuine post comes along fewer will be inclined to reply, I think the OP should apologize to all respondents and realize the possible damage he could have caused.
Many have benifited from help and advice on here and it should be praised and applauded for that reason not misused and abused.
The Stupid Neither Forgive Nor Forget
The Naive Forgive And Forget
The Wise Forgive But Don't Forget