Change of Direction

[Treemon]

After 25 years in the firewood game im considering a change of direction just was wondering what my business may be worth ? Ive got the following-

 

Ecommerce website with well over 200 customers

 

Japa 320 processor with log deck

 

David Brown 1210

 

Manitou forklift

 

Compact timber trailer

 

Ifor Williams tipping trailer

 

Approx 100 vented cube sacks

 

Approx 50 barrow bags

 

Shipping container

 

Sawdust extractor / baging unit

 

Petrol Riko saw bench

 

Various promo items

 

Bag stand and bag loader

 

Approx 80 ton of seasoned hardwood in cord lenght (elm/ash/sycamore felled 18 mnths ago)

 

Approx 2000 nets of kindling

 

Various sundries -nets, spare chains & bars , etc

 

 

Its all you could want for to get started , still not sure i want to sell - very reluctant. What would you want for this lot money wise as im at a loss how to price it.

[muldonach]

What is it you are actually proposing to sell? You have listed a series of individual assets which I am sure with a little research you could put an individual and cumulative value on.

 

What you do not mention is the business as a whole - is turnover / profit margin / customer base growing or shrinking over the last 3 years?

 

Sorry if I am being dense but are you looking to sell a going concern or are you looking to shut up shop and break the business up?

 

Cheers

mac

[Treemon]

What is it you are actually proposing to sell? You have listed a series of individual assets which I am sure with a little research you could put an individual and cumulative value on.

 

What you do not mention is the business as a whole - is turnover / profit margin / customer base growing or shrinking over the last 3 years?

 

Sorry if I am being dense but are you looking to sell a going concern or are you looking to shut up shop and break the business up?

 

Cheers

mac

 

No good point as a going concern as a whole - if anyone is interested it as been making a profit and will show figures

[davetaz]

any body looking at buying a business would be more interested in your accounts and books first with assets a close second

you would need to show how much work needs to be put in for the level of turnover and profits you make

[Yorkshireman]

assest = £

 

turnover = £

 

Profit = £

 

any director or s/trader remuneration = £

 

proof of any contracts or guarentee market share at least consistant turnover last 3-5 years

 

 

then look at the praticallity of who could buy it is it transerfable ? beyond a certain geographic area before travel makes it un sustainable

 

asset value + profit is a base line however any investor will look at the cost and how long to breakeven & see a profit

 

iain

[Farmer Tom]

I reckon Treemon is quite correct not to disclose his trading figures on a public internet forum.

 

The data he's given is a good indication of the scale of his business, the figures should only be disclosed in private to those genuinely interested in buying his business.

 

Otherwise, for example, his existing customers may decide his margin's too great and go elswhere, his competitors may find a way to underbid him;

and as to what happens if his wife finds out the real figures........

[Treemon]

I reckon Treemon is quite correct not to disclose his trading figures on a public internet forum.

 

The data he's given is a good indication of the scale of his business, the figures should only be disclosed in private to those genuinely interested in buying his business.

 

Otherwise, for example, his existing customers may decide his margin's too great and go elswhere, his competitors may find a way to underbid him;

and as to what happens if his wife finds out the real figures........

 

[muldonach]

I reckon Treemon is quite correct not to disclose his trading figures on a public internet forum.

 

The data he's given is a good indication of the scale of his business, the figures should only be disclosed in private to those genuinely interested in buying his business.

 

Otherwise, for example, his existing customers may decide his margin's too great and go elswhere, his competitors may find a way to underbid him;

and as to what happens if his wife finds out the real figures........

 

Quite right and fully agree - I would not put actual figures up either but an indication of the health of the business and the way it is headed would be essential in considering its value.

 

e.g. there is mention of I think 200 customers if that is the same as or more than it was last year it denotes a healthy business, if it is half of what it was last year then it is a different matter altogether.

 

In days gone past we have looked at other businesses and it is reasonably common to see a comment like:-

 

"Sales up 10% year on year over last 3 years, gross profit margin 8% (steady over last 3 years".

 

Cheers

mac

[chilli]

gross profit margin 8%

Did you mean 'net' profit?

8% gross (sales - cost of sales) would be appalling.

[renewablejohn]

Whatever you do dont wait until you are in a forced sale situation. I have done quite a few administrations and the reality has been 10% of asset value and nothing for the order book or customers. Slightly different if you have a unique product unfortunately log sales every man and his dog is jumping on the bandwagon.