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Graham, yes I have more or less completed the sale of my primarily commercial grounds maintenance business albeit with a few domestic customers. Established for over 40 years. Not something I plamned at this time but ill health has forced my hand.
The business had no formal written contracts are you in the same position? If so ascertaining a business value is tricky - what are you selling and what is the purchaser buying? The answer is goodwill. Machinery and vehicles are a separate issue and are if possible included on a TOGC basis ( transfer of going concern) particularly if you are vat registered and the purchaser is not, read the vat rules. As to putting a price on your business this is purely what someone is prepared to pay and how much help you are prepared to put in to reassure your customers that "nothing will change" . I have been lucky in so much a long standing sub contractor who is well known to my customers has bought my business so they had the reassurance of a known quantity, have you an employee who could buy? This will be a large factor in the price, can you offer a pay in instalments deal? I have sold at a figure of 50% of annual turnover for the "goodwill" with the machinery at an extra cost. Could have possibly got more but who to? And my health situation prevents me from months of messing about with time wasters and dreamers. Do consult an (your) accountant as capital gains tax will be payable along with income tax payable on machinery/vehicles . I would make it a condition of sale that the purchaser has to buy the machinery otherwise you will be messing about on ebay/gumtree for months trying to sell. Vehicles are easier to move on. Best wishes.
agreed with Peter here, if you do have the opportunity to 'hand down" a good platform and opportunity to someome young in your area, a current employee that you could see the potential in, or even a sub contractor youve worked alongside for a few years, considering a payment structure on future profits / eventual payments per month to reach a fair valued total would be one of the better routes to take!
you have the opportunity to ease out of the business why giving the next generation a platform that took years to build. good luck whichever route you choose to take!
I did it in 2022...
Its a difficult one without contracts in place.... I think I was lucky - the company that bought the company (clients, van, employee and kit) didnt look after the clients in the way I did.... I know for a fact they had lost most of the clients within a year.
Happy to talk more about the process if you want