Sole trader to Ltd Co

[Arborist Sites]

You only have three posts to your name, maybe if you lose the attitude you may get a better response...

[RPA]

Number of post have nothin to do with it. Asking a simple question where someone then gets the wrong end of the stick (intentually or un-intentually) can be frustrating.

 

If people RTFQ and asked if they did not understand it would help stop pointless posts like this one.

 

My rant over.

[Arborist Sites]

Number of post have nothin to do with it. Asking a simple question where someone then gets the wrong end of the stick (intentually or un-intentually) can be frustrating.

 

If people RTFQ and asked if they did not understand it would help stop pointless posts like this one.

 

My rant over.

 

His/her reaction was the point for me actually, i was going to post to answer the question but didnt like the attitude coming over in the post. If they had lots of posts under there belt then maybe i wouldnt be so bothered but the person in question (not in our industry and most likely has no interest in it) will probably never post on arbtalk again after getting what they want...

 

So for me it actually wasnt a pointless post but thanks Edenarb for pointlessly pointing out that my post was pointless when there was a valid point for me and therefore making my post completely pointful and not pointless.....

[RPA]

Thought arbtalk was here to help people learn about the industry. His client is in the industry and by posting on here he to me is trying to do the best for his client - how many accountants would go that far?

 

Excuse me for not realising that there is a level of industry knowledge/experience required as a pre-requisite for posting and for being so ignorant as to believe people actually come on here to try and learn things and gain information to help them and others.

 

We are obviously giving a shining example of the industry to 'outsiders'

 

I for one would actually have liked a structured answer to the question because Ltd has crossed my mind a few times.

[ashawandco]

Thanks Edenarb. Never intended to offend anyone (and don't really understand how I seem to have - apologies to those I have offended) and won't comment further on that, tempting though it is.

 

I'm just trying to learn what I can about the industry so I can help someone who's in it.

 

If anyone can help, it'd be great to hear from you.

[Justme]

Do small one man band type businesses actually have much value? It would be easy to just start up yourself (as you would have to have all the skills already) rather than buying some one out.

 

Unless his order book is full for the year. I think I would contact a few company valuers / selling brokers & see what value they put on it. Then you can use that to justify your numbers on the accounts. Just stick the written quotes that help in the file. Just like you would with any company. You could also get some one to make an offer in writing to buy the company but you turn it down as not being for sale or not enough. Some thing is only worth what some one else is prepared to pay for it.

[ashawandco]

Thanks Justme. No, probably not much value at this stage but every little helps.

 

Your points are all well made and good ideas.

[arbclimber]

When I sold my business I got very little for the goodwill. As a small business I seemed to find that all the repeat customers were coming back because they wanted ME to do the work. There is, however, a certain amount of goodwill value as far as advertising etc goes imo. Obviously advertising I had arranged which continued into the period of new ownership was a direct benefit to the new owner.

 

However, (please dont take this as an insult it is merely my thoughts on the situation)if i went to my accountant tomorrow for advice and found he was googling and searching forums for answers, I would be a little concerned. I cant see how, from a goodwill point of view, our industry is any different to many others.

 

As said this is just my take on the situation and if, as a person who recently sold a business in this industry, I can offer any more information, I would be happy to do so.

[welwell]

I'd offer some help mate if I knew anything

[ashawandco]

No insult taken arbclimber. There are similarities to other businesses of course, but there are differences too; for example, an accountant with a turnover of £100,000 as against a lawyer with the same turnover might be worth more because an accountant tends to have repeat business whereas the lawyer doesn't. Industries tend to have their own 'multiples' of earnings, i.e. business is worth X times its earnings.

 

Valuations are tricky and no two people will come up with the same number. I'm just trying to gather as much info from as many sources as I can so that if HMRC does try and argue with me about the value I can give him something to back it up, even if some of my info is only anecdotal.

 

Wouldn't you want your accountant to be interested in your industry? I reckon the better I understand it the more helpful I should be.

 

How old was your business when you sold it? Did you operate alone or did you have help/employees?