[johnm]

come on guys why sell your busness for 3 times
surley its worth more 

[pylofm]

Just for info, here in Holland I have seen work sell for between 4 and 10 times it's round worth..

[Trevor Knight]

come on guys why sell your busness for 3 times
surley its worth more 

Look at it this way, especially for domestic (not on contract) work.

£1000 per month sells for £3000

Financial Forcast:

Month                              Income               Expense                      Profit
1                                      £1000                 £400 + £3000           - £2400
2                                      £1000                 £400                       - £1800
3                                      £1000                 £400                       - £1200
4                                      £1000                 £400                       - £600
5                                      £1000                 £400                         £0

This does not take into account, vehicle cost, petrol, Cancellations, Bad Debts, Collecting costs

So in fairness someone who buys a round at 3 x the value is going to have to wait at least 6 months before he makes a penny.

IMO opinion I think that is a long time speculate a return on your money. Its even worse if someone new buys a round thinking they will enjoy window cleaning to find out a few months down the road its not quite as easy as it looks and packs it in?

[markybop]

and at the end of the day what are you actually buying?
A list of house no's.....
It's a bit of a gamble......
u cud pay for the 'work' then someone comes in and undercuts u and u lose some customers...
Risky!

[Biscute]

Do your self a favour and get your own worck/ work to do. Its buisness, its hard and its takes alot of effort to be sucsesfull.

[Davie T]

Hi, Am I correct in saying that you are selling a round advertised on this site mid March 07?

Am I also correct in saying that you are seeking , without success, much more than x3 times the round value?

David

[Majestic]

http://www.cleanitup.co.uk/smf/index.php?topic=34359.0#msg269277

[Trevor Knight]

Hi, Am I correct in saying that you are selling a round advertised on this site mid March 07?

Am I also correct in saying that you are seeking , without success, much more than x3 times the round value?

David

I put it to you members of the jury, that my learned colleague is in fact "correct" lol

[gary evans]

I agree with Trevor & his working out time from purchase to profit.

I have seen rounds go for upto 10 times, i had a guy once offer me one for £30,000.00, & told me it was excellent. YEH.

Apparently he had sold one previously to somebody who had been made redundant, & had money in  the bank to burn.

Some say upto 6 times is fair for commercial, but the method of working out doubles, if you use employees up nearly 12 months, so thats something to think off.

If you had a loan for the work & split it over 3 years & only use the repayment similar to leasing or buying a vehicle then its a lot better. This  i did for a round in 1990 & sold the work in parts 6 + years later & got 11/2 times my money back. The final part was 2k of work per month for 2k because i needed to sell quick & knew the lad.

The work must have good options for the future i.e. price increase, expansion or improved future sale value.

I recently purchased 6 houses for £300.00, valued at £200.00 per six week clean. Since that i have gained one house cleaned weekly at £150 approx. per cal month,
& 3 houses 1 £20 fortnightly, 1 upvc clean £70.00 now £35.00 six weekly & one £30.00 monthly.

These prices are high but the houses are big, very big.

It pays to buy if the price is right.

Gary

[danny mckim]

if you dont think its worth 3 times.what would it take to sell your buisness