[Adam P]

was called today by someone saying they're moving away and no longer can run their small domestic cleaning business so would like to sell them off.

i'm interested in the idea but i've never done anything like this nor have any clue how this would work. We're meeting in a week to discuss and i'd like to get some advice before that meeting so i can be best prepared.

anyone with any advice on this?

[BDCS]

Does this not shout SCAM ? If it sounds too good to be true ........... Will you meet every client in their home and hear from the horses mouth how much and how often the jobs done ? Have you ever heard of the company in question? Are they in the phone book/internet/anywhere? Ask to see previous accounts and the accountant who did them and search him/her. I'd be asking allsorts of questions before I parted with any money - best pay for it on your credit card as well. Who's going to do all the extra work? Tupe ?get a proper contract and only pay for clients that last 3 months I did you expect good replies or am I just a doom merchant ?

[Adam P]

it's a small company so i had not heard of them previously but i have now had a look and they seem legit. of course it does seem kind of like a scam but the reason could be completely true and the person is really moving away. i know of plenty small cleaning companies in the area that do it to earn money and not as a proper business that they're trying to expand, so eventually when something better comes along they need to get rid of the clients.

as you mentioned no money will be leaving my hands until i'm completely satisfied it's legit and i don't risk losing any money paying for a customer to find after one clean they don't want to go ahead with our services.

we need to take on more staff but keep holding back as there isn't loads of extra work for them, so this seems like a good way to take on staff and immediately have plenty of work for them.

it's only a small business (afaik just the owner that runs the business) so no staff to tupe across

[martin19842]

hi there

even if this isnt a scam it is frought with issues.

what exactly are you buying ?? in truth not a lot.  most domestic clients arent tied into 12, 24 or even longer month term contracts, with full t and c's.

therefore as soon as you start the  cleaning, what is to stop them terminating immediately.

at best these clients can be approached as warm leads, ie they need to be converted by you to your clients, and work your way and to your costings.

therefore what is the value ?? worst case scenario its a mailing list .

at best assurances from the clients that they will stay with you for say 3-6 months, then invoice less expenses = profit x a multiplier calculates the value of that client and therefore starts to create a purchase price.

are they selling the kit. the phone number, website etc, any existing advertsing, all of these items will add up to another value, plus GOODWILL.

so let us know where you get with this

regards

martin

[derek west]

i've not got a clue on this one but heres a shout.

offer her a percentage of the monthly takings for as long as there your customer?

just a thought, don't shoot me down.

[Alan McTernan]

Something like this is classed as Goodwill and is only worth what someone is willing to pay for it. Unless you can get them all to sign a 12 month contract!!!
One way to go about it is to maybe pay the company a percentage of the money taken over a certain period?
I had a local guy call me last year and asked me to buy a contract off of him as his accountant said it was worth x amount, i refused as it was a goodwill contract, i offered him a percentage over 6 months he turned it down, i was contacted by the people independently. So maybe it may be worth sitting on it as if they loose there cleaner they will then search for a new one!!!

Just a thought

[Adam P]

So maybe it may be worth sitting on it as if they loose there cleaner they will then search for a new one!!!

Just a thought

exactly my thought. thought she is in contact with more then one company so this would mean none take the customers.

i've not got a clue on this one but heres a shout.

offer her a percentage of the monthly takings for as long as there your customer?

just a thought, don't shoot me down.

great idea! i will suggest it and see what she says. if she's against it then only more alarm bells for me to walk away