[ronnie paton]

i also bought craid wrights commercial and its the best decision i made iv picked up nearly £600 for the same company with the possibility of 3 more sites valued at £800.

i paid around 5 x and now i feel this was a bargain. at the time i felt it was a bit steep.

[Steve CM]

I disagree with steve cm because the round is what you make it-if the work is there paperwork doesnt really matter because your buying the work not the business-you are not taking on any debts but your own

its all about the history! no history then your easily ripped off arn't you? :

if you have a decent paper trail, you can work out what overheads etc you need. we all keep our overheads high to stop the tax man taking to much. You just need to see wether it makes money?!

also if you want to go to your bank for decent funding to buy a business then they will probably ask to see its accounts.

would you buy a car with no history or paperwork? i wouldn't your to easily mugged off. same rules apply here

I've bought work i've taken a punt at as it was cheap to buy but if your talking a proper business with proper accounts then your gonna get more arn't you? I would buy out a competitor for a decent amount in my area if i could see they have a proper business.

[kw cleaning]

steve cm-what i ment was that if the work is there its there.you own a business then you create the overheads

Thats what work is-for example say you got a  commercial contract thats worth £200 thats what its worth-the costings would be on your behalf like buying a round its up to you to keep the overheads down

When you buy a business then you buy everything i.e overheads and debts
thats the point i was making

I understand history is everything when buying a business but when its work like this its always best to pick customers at random and see what they have to say-take the seller with you then they can introduce you. i always take accounts into consideration but its the customers that matter you cant see what they are like on paper so you meet them

I have a chat -tell them what id like to do with the round like pricing and any ideas i think will improve the round then get feedback so i know what the customers need and want

[trevor povey]

All compact residential work  with a decent hourly or day turnover should be worth more than the x3 or x4 monthly valuations...anyone considering selling work should up the stakes to a minimum of  x6  and I,m 100% sure you will get takers in the present climate and help  set a new standard of valuations for rounds.


PS one of our contributors from the Burnley area says residential rounds over there are valued at X10 the monthly valuation which to me sounds just about right

[Steve CM]

steve cm-what i ment was that if the work is there its there.you own a business then you create the overheads

Thats what work is-for example say you got a  commercial contract thats worth £200 thats what its worth-the costings would be on your behalf like buying a round its up to you to keep the overheads down

When you buy a business then you buy everything i.e overheads and debts
thats the point i was making

I understand history is everything when buying a business but when its work like this its always best to pick customers at random and see what they have to say-take the seller with you then they can introduce you. i always take accounts into consideration but its the customers that matter you cant see what they are like on paper so you meet them

I have a chat -tell them what id like to do with the round like pricing and any ideas i think will improve the round then get feedback so i know what the customers need and want

asking a few customers doesn't give you turnover/payment history : you make the final details on how you can fit it into your business with the costings, you would only need to see what it generates and how long it would take to complete. Why would you take on debt? you would be buying the business based on its turnover and not its debt, if you did then thats just plain stupid or am i missing summat? i also didn't mean to buy a business from just its accounts    of course you would want to meet the customers but if its got no records then you will have more chance of falling flat on your face!

[Platinum NW]

All compact residential work  with a decent hourly or day turnover should be worth more than the x3 or x4 monthly valuations...anyone considering selling work should up the stakes to a minimum of  x6  and I,m 100% sure you will get takers in the present climate and help  set a new standard of valuations for rounds.


PS one of our contributors from the Burnley area says residential rounds over there are valued at X10 the monthly valuation which to me sounds just about right

Thanks for the encouragment and your right i hope that it stops window cleaners under valuing their round-
So far i have had a lot of interest with a few offering for the full work for the full amount but this is subject to inspection and finance but things are looking good

[big J]

I may well have been interested but not at 10x round value  :

[laddermonkee]

There is no such thing as Good will in business, your customers may like you and the way you operate but that doesn't mean they are going to extend the same feelings to the person who takes over from you.

If a rounds have guaranteed contracts then you may have a point. 

[Sunshine/Cleaning]

The local butcher only has the goodwill of his customers, but if he shows that he turns a profit of £3000 per month he will be in a position to sell as a "going concern". Why is that different for window cleaning?

He is less guaranteed a sale. An established Window cleaning company has proven long term customers who repeat purchase every month for several years.

Be warned though, your profit is the money you have left over after all your expenses including whatever you pay the person actually doing the cleaning, labour charge. For most that will include yourself.

So if turn over is £3000 per month, and expenses are £500 + £2000 for your own wages your profit is £500 per month.

I think an essay on what profit is will be appearing soon.

[baxey cleaning]

if you have any commercial work in your rounds i mite buy it off you if the price is right you can mail me on info@baxey.co.uk

[Platinum NW]

if you have any commercial work in your rounds i mite buy it off you if the price is right you can mail me on info@baxey.co.uk

Sorry mate no commercial work- there are a few shops and an office but they are not worth buying alone

[Platinum NW]

As i said yesturday i have now got interest off two parties regarding buying at full price
If there is anyone who is thinking of making a serious offer email me asap as the round is getting closer to sale

[Sunshine/Cleaning]

Something I found on the internet:


Type of Business
 "Rule of Thumb" Valuation
 
Accounting Firms
 100% - 125% of annual revenues
 
Auto Dealers
 2-3 years net income + tangible assets
 
Book Stores
 15% of annual sales + inventory
 
Coffee Shops
 40% - 45% of annual sales + inventory
 
Courier Services
 70% of annual sales
 
Day Care Centres
 2-3 times annual cash flow
 
Dental Practices
 60% - 70% of annual revenues
 
Dry Cleaners
 70% - 100% of annual sales
 
Employment & Personnel Agencies
 50% - 100% of annual revenues
 
Engineering practices
 40% of annual revenues
 
Florists
 34% of annual sales + inventory
 
Food/Gourmet Shops
 20% of annual sales + inventory
 
Furniture & Appliance Stores
 15% - 25% of annual sales + inventory
 
Gas Stations
 15% - 25% of annual sales + equip/inventory
 
Gift & Card Shops
 32% - 40% of annual sales + inventory
 
Grocery Stores
 11% - 18% of annual sales + inventory
 
Insurance Agencies
 100% - 125% of annual commissions
 
Janitorial & Landscape Contractors
 40% - 50% of annual sales
 
Law Practices
 40% - 100% of annual fees
 
Liquor Stores
 25% of annual sales + inventory
 
Property Management Companies
 50% - 100% of annual revenues
 
Restaurants (non-franchised)
 30% - 45% of annual sales
 
Sporting Goods Stores
 30% of annual sales + inventory
 
Taverns
 55% of annual sales
 
Travel Agencies
 40% - 60% of annual commissions
 
Veterinary Practices
 60% - 125% of annual revenues
 

[Platinum NW]

Makes me look like a bargain

[Platinum NW]

Due to a number of interested parties asking me to sell rounds  individually due to banks not providing the funding i have now divided the rounds up

The prices are as follows:

Monthly Turnover - Asking Price

£42 - £400
£84 - £750
£114 - £1000
£150 - £1500 - Lots of Potential on a large estate
£203 - £2000
£260 - £2500
£328 - £3250
£329 - £3250
£418 - £4000
£436 - £4250
£566 - £5500

*Also note asking price reduced

[big J]

it would seem still to be a little steep when I was offered a similar type of round in a different area for between 4 and 7 times value and i thought that a littel dear
hence i will be building a virgin round

[kris martin]

i have bought about 5 rounds over my years and 3 of them were based on 10 times the fortnightly clean and one of them being in burnley. the other 2 were about 5 times the fortnightly clean and this was because the sellers diddnt have a clue too the value...   One thing for sure is i would never pay more than 10 times the fortnightly clean... NOT A CHANCE..   work is far too easy to pick up without paying if you set your mind to it, wish i would of realised this 9 years ago...

[markbonham]

I contacted the guy who is selling this round for a huge 10 times and his average priced house in St. Helens is £2.00 yes thats right £2.00. I would have to say it is not worth it.

[Steve CM]

I contacted the guy who is selling this round for a huge 10 times and his average priced house in St. Helens is £2.00 yes thats right £2.00. I would have to say it is not worth it.

£2.00 is a joke!!

[markbonham]

i know imagine how many houses he would have to do. He said its worth £750 a week and takes a full 5 days to earn the money!!! I now i can earn on my round minimum of £200 a day.