Firewood business for sale in Bristol

[sandspider]

No connection to the seller - just cropped up on one of my saved ebay searches.

 

Firewood logs Business for sale Bristol | eBay

[doobin]

He's having a laugh at that money. Importing logs by the container anyone can do.

 

62k a year profit sounds good but 13k then 19k for the previous two years seems funny.

 

A good website is all very well but if the competition wise up and run an aggressive SEO campaign it will go sour quickly. No mention of any customer lists either.

[Alycidon]

Turnover jump would imply a big contract for shops/garage chain. Web site says its pretty well all supplied in nets !!, yet crates are also for sale. No way with his gear can he handle a 2 cube crate at point of delivery without hand balling it. Mind you it says free stacking included !!.

 

Good businesses are usually valued at last 3 years audited profit + stock and machinery at current book valuation. As Doobin says there is nothing to stop anyone buying from the Baltic and doing the same. At £160 or more for a cube crate all be it stacked he is at the top end price wise.

 

If he can get it good luck to him.

 

A

[kindlett]

I'f he get's £90,000 for that i'll be shocked .so you are saying the value of your buisness is 3years audited profit is that before tax?+stock+machinery ,is the stock valued @ what it has cost to produce or @ the selling price ?

Edited September 9, 2014 by kindlett
spelling mistake

[Inoff the Red]

I could write a book on the various ways of valuing a business and strategies for acquisitions and disposals but ultimately a business is worth what someone will pay for it and there is no standard multiple.

 

One curious aspect of this sale concerns the domain names. The advert specifically refers to the sale of "4 websites" and lists 4 domain names including Firewood Bristol supplies Logs, Firewood & Kindling to the Bristol area. There is however,no mention of Firewood Bristol supplies Logs, Firewood & Kindling to the Bristol area (which appears to be owned by the same person and currently points to the .co.uk site) .

 

Similarly, the advert refers to http://www.firewoodlogsbristol.co.uk but there is no mention of http://www.firewoodlogsbristol.com which also points to the .co.uk site

 

I suspect a potential purchaser may , as part of their due diligence, ask why these domains appear to have been excluded from the sale.

[Duffryn]

I could write a book on the various ways of valuing a business and strategies for acquisitions and disposals but ultimately a business is worth what someone will pay for it and there is no standard multiple.

 

One curious aspect of this sale concerns the domain names. The advert specifically refers to the sale of "4 websites" and lists 4 domain names including Firewood Bristol supplies Logs, Firewood & Kindling to the Bristol area. There is however,no mention of Firewood Bristol supplies Logs, Firewood & Kindling to the Bristol area (which appears to be owned by the same person and currently points to the .co.uk site) .

 

Similarly, the advert refers to http://www.firewoodlogsbristol.co.uk but there is no mention of http://www.firewoodlogsbristol.com which also points to the .co.uk site

 

I suspect a potential purchaser may , as part of their due diligence, ask why these domains appear to have been excluded from the sale.

 

Now there speaks the mind of a person who has been through the process a couple of times. A non compete clause in the SPA would be critical. Organic positions on Google can be lost with the next Penguin update and valuing them at more than 1 x EBITDA is a very high risk strategy.

[Tom87]

'1M3 DUMPY £85' for kiln dried ash.

 

That is so cheap.

[Billy68]

Give the man a break at some point you may want to sell your business will you not want the best price possible

[Inoff the Red]

Give the man a break at some point you may want to sell your business will you not want the best price possible

 

Billy,

I don't think anyone is complaining about his asking price, a vendor has the right to ask for what they want (and good luck to them), but anyone selling a business should expect to be quizzed on what it is they are selling.

Anyone buying a business without understanding exactly what they are getting and the associated risks is taking a huge gamble.

 

If, as Tom says, the selling price of firewood is cheap then that is a relevant and valid comment to the assessment of the business not a criticism of the vendor. You only have to look at supermarkets and compare Waitrose with Aldi…both in the same business but with different business models. Integrating a pile 'em high sell 'em cheap operation with a high margin lower volume business is fraught with risk.

 

Anyone with an existing business will doubtless consider the potential benefit of bolting on the web sites and customer base and compare it with the cost of the goodwill (i.e. fresh air) that they are paying for and whether that money would be better invested in organic growth.

 

Advertising a business on ebay is an interesting strategy and I suspect it is aimed at noobs who may not understand the arb world rather than existing operators.

[Alycidon]

I'f he get's £90,000 for that i'll be shocked .so you are saying the value of your buisness is 3years audited profit is that before tax?+stock+machinery ,is the stock valued @ what it has cost to produce or @ the selling price ?

 

 

Never sold a business in this field but did sell one some years ago, heavy truck parts wholesaler, est 22 years from a zero start, staff of 20 so a decent business.

 

Deals in my old industry were usually agreed around 3 years profits, its usually argued that as these can be adjusted then its pre tax. Stock is valued at historic cost price, anything held in stock for over a given period (say 2 years) has zero value. Machinery at current written down book value.

 

Goodwill is included and the old owner is expected to continue to work in the new business for a month to two to smooth the transition.

 

But its a matter of what a willing buyer will pay for it.

 

A