• PRO

    This has been discussed quite a few times on here (search for 'selling a business' and have a read) and you will find a range of opinions. I sold some of my customer base when I relocated about two years ago. It worked out well for both parties, so yes it is possible and yes I might consider it, but the money would have to be right - both his rates and the price he wanted. I suspect he might over value it. I can't see there being a huge clamor to buy it so the price should be low.

    Also just really make sure the customer base is what you want. Is the money good? Try to visit all the sites first and see whats what. And don't take on the customers blind. Get some assurance that they are at least willing to try out a new contractor. 

    Just found my original post from a couple of years ago which explains how I went about pricing and selling what was then a part-time round. (don't know if that link will work?)

  • PRO
    Have been offered one today but turnover is £75K with 2-3 people so sounds low?

    35 customers, 2 staff, tools, but unsure how to value?
    • This doesn't sound too bad. The average employee should have a revenue of about £40,000pa so if it employs two staff then it is only a tad under the norm.

      • PRO

        How many staff do you employ if I could ask please Adrian?

        Im interested to know as the £40,000pa you mentioned has got my attention. 

        As I am looking to employ part time next year.

        Thank you,


        • Hi Craig

          If you employ someone on a normal wage of between £8 - £9 per hour, then the rule of thumb is to charge the customer 2.2 times as much to be sure of making a gross profit of 40%.

          • PRO

            Cheers Adrian, much appreciated. 

  • with regards to the commercial contracts i'd check to see if by changing company name & who payment is made to, will this cause contract to be re-tendered for again?

    I'd expect to be taken around all the customers & introduced so my terms & hourly rate can be discussed, then like someone else said pay a percentage of each customers payments received

    As for the tools if there this years models & look as if  been well cared for then maybe.

  • PRO

    Pro's: (to buying any business) is the rapid expansion. If the product / service is in short supply in a rapidly growing market, then you want to go for it. 

    Con's: 80% of takeovers are deemed as failures, and most are paid over the odds for. 

    All in all, masses of homework are required. How much do leads (rather than conversions) cost you at the moment, and how much would this set of leads cost. Are they quaility leads or is it poor paying work scattered around which only loosely fits your service offering? 

    If such a takeover came with a member of staff which looked after many of those customers anyway, and they're just changing uniform / van etc then it would be far more appealing than attempting to build new relationships quickly before they call someone else. Would it be too many to handle in one go? 

    An exciting opportunity but only if its the perfect fit.

    • PRO
      I’m presuming that’s from a uni/college course or a book?
      Not saying it’s completely wrong but it’s throwing figures around with no real meaning to this particular trade.
      Who is deeming things as failing?
      IMO it’s a far too simplistic way of looking at it.
      • PRO

        Not sure i would want to buy a business which includes staff regardless of turnover .  How can you be sure the present staff are compatible , not working resentfully or with hidden agenda's ? , possibly a negative outlook but if the human element becomes dysfunctional your business is up the creek , It seems very difficult from what i pick up on here to find good replacement staff .   

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