Would like to sell my business through an agent

[Matz18]

Good morning

General advice on selling a small business please

I have an exterior cleaning company since 2019 called ocean exterior cleaning . Which offers all exterior cleaning.
Roof cleaning, pressure washing, building cleaning etc.

I would like to sell the business which would be the van equipment but mainly the website which gets around 8% conversion rate which resulted in 194 conversions since jan 2023. By submitting there details for quotes etc.

I turned over 43000 last year and have really good profits. I cleared around 30k.

I would like advice please on which agents would be good for a business like mine and what’s the best route to go down.

Any advice would be appreciated

Thanks

Angelo

 

[pentel]

Is this a sole trader business or a limited company?

I would be wary about using an agent for this. They will usually tie you in by giving a very high valuation with a fee payable to them whether they sell your business or not. around 80-90% of small businesses do not sell.

Your best bet would be to find a buyer yourself.

 

[Matz18]

Is this a sole trader business or a limited company?

I would be wary about using an agent for this. They will usually tie you in by giving a very high valuation with a fee payable to them whether they sell your business or not. around 80-90% of small businesses do not sell.

Your best bet would be to find a buyer yourself.

Hi

Thanks for the reply.

It’s a sole trader business. I have spoken to Knightsbridge and the and a few others but got the feeling it’s just going to sit on the shelf for a long time. Apart from Knightsbridge who seemed a bit more professional. Even though there fee was 1200 to join plus 4600 final selling fee.


Wow 80/90 % is a high figure, I just don’t want to pay 1200 and it’s just a waste of time.

Thanks

 

[Mark T Jones]

It's something of a shark pool (to put it mildly) @Clinton - formerly of this parish had some great insights.

As a broad rule, ignore high valuations and silly promises and pay close attention to how they challenge and manage your expectations.

Above all RTFC!

 

[Frank the Insurance guy]

I turned over 43000 last year and have really good profits. I cleared around 30k.

Hi @Matz18 ,

Well done on getting your business off the ground and getting to that level of turnover.

I assume you have taken salary/earnings from the £30K - how much is left? This is likely to be on real interest to any prospective buyer.

I suspect your best bet is to find a buyer for your website and current client list - which may not be much at all.

I can't see an agent being of much value as I think they look at larger businesses.

 

[Matz18]

Hi @Matz18 ,

Well done on getting your business off the ground and getting to that level of turnover.

I assume you have taken salary/earnings from the £30K - how much is left? This is likely to be on real interest to any prospective buyer.

I suspect your best bet is to find a buyer for your website and current client list - which may not be much at all.

I can't see an agent being of much value as I think they look at larger businesses.

Hi frank

Thanks for the reply.

Than you, 43 is turnover and it’s very profitable as it’s a labour based business my main costs are fuel and Google ppc and general running costs.

30k is my wages since 2023. So 13k is about 500 a month Google ppc and rest is fuel. Etc general website costs admin

My client list don’t big and that was my thought as the value is the website and it generates leads etc.

 

[Socio South West]

This is one of those small businesses that falls into the category of effectively being a self employed job and likely to be vastly overvalued using standard business value calculation parameters. Unfortunately with only 4 years complete trading history it can't be considered a mature business.

As a local business the value of the business to a potential buyer will diminish as the distance of a buyer from your current location increases unless you strike lucky and get someone from locality or a near neighbouring area with capacity to expand into your territory.

There are a lot of smaller business brokers out there who won't charge you up front fees but now you have got onto Knightsbridge's radar expect your phone to ring or your email to ping most months with 'follow up' contacts.

You can certainly sell it for a lot less than you have been quoted and probably a lot quicker too. I would second others with the suggestion of finding a buyer yourself which can be done for a couple of hundred quid with well prepared particulars and information. I have sold and bought several businesses through this route.

As to value... What would it cost someone to get to the level you are at? What is the vehicle and the equipment worth? What is the level of repeat business? Do you have analytics or other stats to back up your claims on the website performance?
The final and biggest question is... what is the reason for sale? Will the business be 'for sale' or just 'on the market' ?

Happy to have a discussion with you without obligation

 

[Matz18]

This is one of those small businesses that falls into the category of effectively being a self employed job and likely to be vastly overvalued using standard business value calculation parameters. Unfortunately with only 4 years complete trading history it can't be considered a mature business.

As a local business the value of the business to a potential buyer will diminish as the distance of a buyer from your current location increases unless you strike lucky and get someone from locality or a near neighbouring area with capacity to expand into your territory.

There are a lot of smaller business brokers out there who won't charge you up front fees but now you have got onto Knightsbridge's radar expect your phone to ring or your email to ping most months with 'follow up' contacts.

You can certainly sell it for a lot less than you have been quoted and probably a lot quicker too. I would second others with the suggestion of finding a buyer yourself which can be done for a couple of hundred quid with well prepared particulars and information. I have sold and bought several businesses through this route.

As to value... What would it cost someone to get to the level you are at? What is the vehicle and the equipment worth? What is the level of repeat business? Do you have analytics or other stats to back up your claims on the website performance?
The final and biggest question is... what is the reason for sale? Will the business be 'for sale' or just 'on the market' ?

Happy to have a discussion with you without obligation

Hi Socio South West

Thanks for your reply

I’m totally aware of the factors of the business such as location etc and as a self employed business which can make buyers think I can just do it myself.

I’m not greedy all the equipment and van is around 8000/9000 to purchase and website and would be around 3000.

Yes analytics can be easily proved as these figures are visible of the Google platform which says this data land that’s where the real value is tbh.

Stats are easily proved to show potential buyers.
The business is for sale as I’m going to pursue a different career which is my passion which has been funded by the profits of this business.

I would happily take say 15/16k which is reasonable for a business with good Google reviews and a a good conversion rate on the website. I’ve made my mind up and definitely want to sell

I would definitely like to chat with you for any advice that would be really appreciated thank you

Angelo

 

[pentel]

fee was 1200 to join plus 4600 final selling fee.

I would happily take say 15/16k

Knightbridge fees would be plus VAT so £6960, almost half of your proposed sale price.

Definitely one where you should go it alone.

Consider who would want to buy your business.

A competitor?

A cleaning company that could add your services as a bolt on and cross sell their service to your customers. This would probably be the best bet. Look for a company doing a six figure turnover, not a one or 2 man band. and approach them directly. Approach them under the "work together" idea initially.

 

[Paul Kelly ICHYB]

Put posts on local FB groups and Nextdoor to sell the business.

As mentioned, speak to some of your regional (not local) competition who might want to expand. £15k for £43k t/o (their average costs will be lower if your business is included) and another mobile unit might end up being good value!

You might even start at a higher rate (£20/25k) with some wiggle room.

 

[DanteMosley]

It's a good idea to have an expert figure out how much your business is worth. Your strong profits and the success of your website in getting customers will definitely make your business more attractive to buyers.

 

[KeithGreen]

Hi, just a few comments from me. I am a business broker or agent or whatever we're called these days. I prefer business sale advisor.

It is an often quoted statistic that 80/90% of small businesses don't sell. I have no idea where this statistic comes from. As Vic Reeves once said, 80% of statistics are made up on the spot.

I checked my own success rate over the last 4 years and it is 48.9%. I could make adjustments for those that were withdrawn from sale, closed down during covid, came to the end of a lease etc. but instructions received versus sales made is 47:23. Some of these are still on the market.

I attempt to give an honest valuation, but valuing a business is not an exact science. Based on your figures, your thoughts around £16k don't seem unreasonable, and as someone has said, ask £20 - £25k and expect to negotiate. Rightbiz might be a low cost option for advertising.

My fees vary depending on the size of business, basically the higher the value, the lower the commission. I offer a choice of a small monthly retainer or an upfront retainer, plus commission. At this level I would be around half the fee quoted in your post. I ask for commitment to sell, but don't lock you in - we're working on trust after all.

You'll need good records, at least 3 years full accounts, plus year-to-date figures and keep these updated. Also a good description of the business and a list of assets included.

 

[Mark T Jones]

I checked my own success rate over the last 4 years and it is 48.9%. I could make adjustments for those that were withdrawn from sale, closed down during covid, came to the end of a lease etc. but instructions received versus sales made is 47:23. Some of these are still on the market.

Did you just make those up?

 

[KeithGreen]

Did you just make those up?

LOL. No.

 

[DanteMosley]

Did you just make those up?

Really looks like! Especially the part 'I checked my own success rate over the last 4 years and it is 48.9%.'

 

[Mark T Jones]

Really looks like! Especially the part 'I checked my own success rate over the last 4 years and it is 48.9%.'

I was using humour.

Machines aren't good at it

 

[Matz18]

Good morning thanks for all the replies, really appreciate it.

Yes I definitely want to sell and get it listed,

thanks Angelo

 

[kordun]

Good morning

General advice on selling a small business please

I have an exterior cleaning company since 2019 called ocean exterior cleaning . Which offers all exterior cleaning.
Roof cleaning, pressure washing, building cleaning etc.

I would like to sell the business which would be the van equipment but mainly the website which gets around 8% conversion rate which resulted in 194 conversions since jan 2023. By submitting there details for quotes etc.

I turned over 43000 last year and have really good profits. I cleared around 30k.

I would like advice please on which agents would be good for a business like mine and what’s the best route to go down.

Any advice would be appreciated

Thanks

Angelo

best options to sell it to someone local to you who can just carry on with your website if its ranking well. if they dont need van & equipment sell that separately. lots of facebook pages for that work

 

[KeithGreen]

Really looks like! Especially the part 'I checked my own success rate over the last 4 years and it is 48.9%.'

Lol. Bantz!

 

[Lisa Thomas]

Good morning

General advice on selling a small business please

I have an exterior cleaning company since 2019 called ocean exterior cleaning . Which offers all exterior cleaning.
Roof cleaning, pressure washing, building cleaning etc.

I would like to sell the business which would be the van equipment but mainly the website which gets around 8% conversion rate which resulted in 194 conversions since jan 2023. By submitting there details for quotes etc.

I turned over 43000 last year and have really good profits. I cleared around 30k.

I would like advice please on which agents would be good for a business like mine and what’s the best route to go down.

Any advice would be appreciated

Thanks

Angelo

please dm me for a recommended agent who can help sell the business for you.