Thinking of selling up, any advice?

[voj maintenance]

In a nutshell I want to know if any one has sold a small business and how they went about it, how do you put a value on it? I'm a sole trader, been going for around 10 years. Although there's no property to sell and the business is debt free. I do have a van, trailer, and a fair amount of kit and a decent customer base. Any thoughts please.

 

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[Mike Hill]

Appraised value of all kit less 20% to the bulk purchaser.

The good will is only work what someone is prepared to pay for it.

[arbmark]

Its very hard to say without literally doing it. Essentially its probably the value of the kit and a bit of good will which would arbitrarily be based on turnover.

If I was starting up over again I would buy a business, take on the debt and hit the ground running. I was surprised when a local guy to me sold up a good business and had no takers.

[departed]

Not sure if this will help you, a couple of years ago I sold my gardening and landscaping business that I'd built over 3 years.

I sold the business to a friend of the family as I was offered a job I couldn't refuse.

I sold the assets, i.e. Van, trailer, tools for part ex price & I wanted him to get up and running asap so I sold the client base for 3 months turnover.

I definitely undersold the business but it was a quick and fair sale that I was after, I didn't want the friend to struggle and I didn't want 'my' customers messed around.

I don't know your circumstances but I'd advise you to think before selling up, I regretted selling almost as soon as I started my new job! I will be self employed again once funds allow, hopefully in 1-2 years.

 

I don't know how much that'll help you or even if what I've written will make sense!!

 

Cheers,

Sion

[skyhuck]

In a nutshell I want to know if any one has sold a small business and how they went about it, how do you put a value on it? I'm a sole trader, been going for around 10 years. Although there's no property to sell and the business is debt free. I do have a van, trailer, and a fair amount of kit and a decent customer base. Any thoughts please.

 

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This will be your biggest problem in realising much value from your business. Basically YOU are the business and you're not for sale.

 

Sure someone may be willing to take a punt, in the hope YOUR customers like them as much as they liked you.

 

To realise real value you need to scale it up and have staff doing the work, these staff can stay with the business when its sold, so from the customers point of view little will change.

 

But then if you get staff, you may not need to sell

[aspenarb]

Its "worth" 80% of the annual gross profit taken as an average over the last three years minus any liabilities, finding a buyer is another matter .The kit as a separate entity would need an independent valuation, probably best sold off privately.

 

Bob

[voj maintenance]

Good advice so far thanks. And yes departed I see what you are saying. As far as growing the business, there is definitely scope for that, but as an earlier post on the forum discusses, I can't seem to find good staff. I'm p**sed off people who just turning​ up and expect to get paid for being a Muppet. I could through the summer do with something​ one in another van going off to do jobs. But if they are no good I'm going to end up losing trade. Maybe I'm expecting to much. Maybe I'm going on a bit. I suppose it's a conundrum that lots of small business face.

 

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[departed]

Shame you're South Wales and not up north like me, I'd either buy it off you or come and work for you!😉

It's such a shame that there's a shortage of decent lads. All the good ones are self employed I guess.