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PRO

Selling on maintenance runs

Hi allI'm thinking of next year passing up 2 of my domestic maintenance runs. Both bring in 500 roughly a day with 3 men. Both these runs equate to £7000 roughly through the summer months (15 cuts) with the odd bit of work through the winter, some ad hoc summer work and always friends and family joining the maintenance run.What kind of value could you put on this to pass them over to another business?

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Replies

  • PRO

    Hi Matt, perhaps one for the BOG.

  • PRO

    I seem to remember James McKay on here bought a round off of another member with quite a long thread with the discussion.

  • there is a big difference between turnover and profit as your figures I would think you make about £3000 profit on them also is there any written contract for the jobs ? if not it will not be worth a great deal as the customers could turn round and say do not come again I have got someone else

  • Hi Matt<br />
    as you realise it's just so hard to value. Unless hard contracts are in place which could command an almost guaranteed income for the purchaser then personally think it's a case of how much would you pay taking into account the risk element without contracts. I would think the longer you have been doing the work then the higher the value to a potential buyer. <br />
    If I was starting out or building up a business then I may take a punt at £1000 but would need to meet the customers personally to hear how they viewed a hand over before parting with any cash.
  • PRO

    You have to be realistic. The customers may well not like the new owner. You have no contracts. There's nothing to stop someone who knows you want to sell from approaching your customers themselves.

    Generally speaking, local gardening businesses are worth the value of the tools and any goodwill you can get is a bonus. If it's profitable, people will ask why you are selling? Especially as you already have staff. Why wouldn't you just employ another member of staff to work on them, if you want to free your time up? Or are they the sort of customers where they expect you personally? This is a pitfall many young businesses fall into in this market. Took me a few years to get past this.

  • PRO

    Hi Matt, how many customers are there, and whats the annual figures for average revenue (net) per customer, and what do you think you're making profit per customer (net).

    What is your reason for passing them on?

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