[stmckay1@hotmail.co.uk]

I have got a Contract Cleaning Business and have customers who also want me to clean windows was looking at buying WFP system and have been offered a business with 3 year old Vito Van WFP system and Turnover of 30k a year 70% commercial customers 30% domestic. The asking price is 40k. Anyone have any ideas how to value this as not sure if it a good deal.
 

[drakestar!]

tops is 3x a monthly clean, so £7500 plus whatever the van is worth, so £40k is more than twice what anyone would want to pay!!!!!!

[Pj]

depends on a lot of things.

Location. (especially residential work)
Length of commercial contracts.
How long goodwill goes back.
Mileage/spec on vehicle.
WFP system.
How accessible it is to you.
How much you want it. (most important).

What do I know, I've only got 20 years experience and still learning, but if someone wants 40K for that, they don't really want to part with it.  I would offer half that.

But then....I'm not offering.

[stmckay1@hotmail.co.uk]

Thanks for the help he`s built it up over about 10 years, but was also thinking of about half the figure, seems really keen to sell. ,

[windowwashers]

Thanks for the help he`s built it up over about 10 years, but was also thinking of about half the figure, seems really keen to sell. ,

top price pay 4 times price of clean if it is good work, you can buy rounds from 1x 2x 3x most of it is not the best in the world so for a very good round 4x is still a very good investment if you think about it. 

[Pj]

Thanks for the help he`s built it up over about 10 years, but was also thinking of about half the figure, seems really keen to sell. ,

Bear in mind that he may have built it up over 10 years but his best clients may have only been on his books for a short time.  Make a serious offer and then scrutinize his records.  he'll let you if you mean business

[stmckay1@hotmail.co.uk]

Thanks Guys sounds like good advice appreciate the help 

[Russell Macdonald]

Ask for accounts to back up his claims of earnings.

Turnover & profit are 2 totaly different things,

[NWH]

1x2x3x4x is rubbish that`s how you value run of the mill ordinary work,a business that`s turns over 50k+ would and should be worked for at least 3-6months to see the money earn`t for real in the flesh.Your not talking about 2 up and 2 downs all day for a WC business that`s turning over real money,the only convincing someone should need to part with there money is meet and take the time to speak to a good % percentage of the customers your purchasing.

[cvdewsbury]

you lot saying u can buy commercial work for x4 cleans .....NO CHANCE  .....you will need to dig in yr pockets to find twice  that amount

[Clear Vision]

Why would anyone pay anything for any kind of work at all??? Domestic or commercial.

It's good will and people need to remember that!

If someone sells you a domestic round for (Lets  say) 10k
Half of those customers could turn around and say "sorry but we have a cheaper quote" or "sorry but we only require them cleaning once a year instead of 12"

Come on guys!!! I pass work on for free!

Good things come around

[NWH]

Buy a round from these people who will canvas for you and you might keep half the customers when you start working the round or half might get the 1 clean there looking for and then tell you goodbye,option 2 is buy a well established BUSINESS not a load of doorknocked work the week before that you might get 30% of, and after spending 3 mnths meeting and greeting reliable people that want a continued service you might just be on 5-6k a month for years.If you could provide books that equate to say 50k a year for example any bank would give you a loan tomorrow,lets not forget i`m not talking about buying work off of a bloke that`s charging half of what he should be i`m talking about a profitable business,why is it that when you talk about WC people think your years of hard work are worth nothing,i know a bloke that`s just sold his factory for over 150k and all they got was floor space and a few machines with no promise of income whatsoever.

[Ian Rochester]

The standard for accountants valuing a commercial business is generally that any business is worth 2 x THE ANNUAL PROFIT. 

However, commercial and domestic are totally different beasts, you would need to look deeper into the books of this business to see what their costs are, also are they on fixed term contracts, tenders, open-ended, have they had any problems with the customers, or vise-versa.

A £30K business is most likely a one man operation, how long have they been established, what is their reputation like, why are they selling?

If you have contract cleaning business now, you're probably better off just buying the gear you need and starting out from scratch.

[NWH]

What rather than getting your money back from day 1.

[windowwashers]

2 x THE ANNUAL PROFIT.  THAT WOULD BE TOTAL MADNESS IN THIS LINE OF WORK.

I would sell all of my commercial work tomorrow for this fee.

Ian

[Village Gleam]

Ten years to achieve 30k T/O?

It's obviously a very poorly built business, I'm surprised he had the cash for a newish van and equipment- steer clear.

[danny mckim]

Here in Paisley, 2 window cleaning runs have gone for £40,000. Im told by local guys that they bring in around £36,000 a year. I personally think this is a fair price. I know the two older men who sold these runs and they put in a lot of hard graft to build them up over the years. How would you like to put in 30 odd years work and walk away with £9,000 and let someone else get the benefit of your hard work


   Danny

[ronnie paton]

some people just de value there business there totally mad!!!

if you owned a cafe would you be guarenteed the same income not at all  but if you do good food at good prices advertise for deliverys ect ect you will maybe get more income.
if you buy a haulage firm is the work guarenteed?? maybe untill the contract expires but if you dont continue to provide a good service at competive prices then you shgould do well.......................my point is window cleaning is no different work hard provide a good service a good prices be proffesional AND there is no reason you wont keep the work and expand.

i would jump at buying good work for x1 x2 x3 x4 x5 but i would not sell my work for any of them, my business is all good work has a reputation(a good one) a good website ect ect ect and i would only sell for good money.

And yes people can build there own if they want but any one can start any type of business up if the do the right research and are commited.

[East coast window cleaning Services]

Ten years to achieve 30k T/O?

It's obviously a very poorly built business, I'm surprised he had the cash for a newish van and equipment- steer clear.

My thoughts exactly thats p poor

[NWH]

I was to surprised that he would have had a van like that and other bits.