How do I sell my business?

[SHADES Limousines]

Hi folks

After a little bit of bad health recently (nothing serious) I'm now thinking about selling my business.
The trouble is, I have no idea as to how to go about this or even where I would need to start. I have someone who is interested but not sure how I value the business. I have a limo to sell and booked in work for 2017/18. Not sure whether to add the name, website etc or whether to just sell the car and work. It's not worth a lot atm (£2,200) but it's still early and this can easily treble if not even more.
The person who has said he's interested is in the same business local'ish, so is probably only really interested in the car and work. I don't really want to go through a broker as this will eat in to what ever the total could be, also I don't think it's big enough or makes enough for those to look at it.

It's hard for me to try and work out what to do, which way to go etc.
Any help would be greatly appreciated!

 

[SteveHa]

Valuations of a business are always going to be subjective, the true value being whatever someone is prepared to pay for it.

However, there are established methods for valuing, one of the most common being a multiple of EBITDA. You will need accounts in order to be able to do this, however. Though as I said, the only true value is what someone is prepared to pay.

 

[Alan]

In reality its worth about the value of the car plus a very small amount. The advanced bookings (£2,200 ) are not worth much as the work needs to be done. The website and name have little value as creating a website is inexpensive.

 

[bathuy]

You want to sell a car to get business money? 1 bold idea

 

[bathuy]

If you do not have any products for your business that you can use other people's products, that's the form of affiliate marketing, you ask the vendor to promote their products and set up a website promoting it. , you sell and you have roses, i'm also going that way, but have to try harder to get results

 

[SteveHa]

In reality its worth about the value of the car plus a very small amount. The advanced bookings (£2,200 ) are not worth much as the work needs to be done. The website and name have little value as creating a website is inexpensive.

You may be surprised. Planned work does have value, as does goodwill. That's why it works on multiples of EBITDA, to allow for intangible assets.

 

[SHADES Limousines]

You want to sell a car to get business money? 1 bold idea

I'm sorry bathuy but I'm not following you on your post!

The business I'm selling is preferably as a whole. Limo, bookings, reputable company with 5* reviews across the board. Website and all the bits. Basically, if someone in my area had a private hire badge all they would need to do is insure it and change the name for the limo license. And they would be the only ones under our council to be licensed.
I'd sell the limo and bookings separately if need be and just fold the business and the extras. But it's a going business with just over 5 years now

 

[SHADES Limousines]

You may be surprised. Planned work does have value, as does goodwill. That's why it works on multiples of EBITDA, to allow for intangible assets.

What does EBITDA mean please SteLacca?

 

[Scalloway]

EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortisation

 

[The Byre]

Very, very, very roughly speaking, you should be aiming at 4 x real EBITDA (i.e. after subtracting your own pay) plus tangible assets, minus liabilities. That is, however, a very Mickey Mouse calculation and there are many other factors to take into consideration, such as industry growth and future possible developments.

 

[Matthew1982]

I think @Clinton has a guide for people looking at selling small businesses themselves. I can't be certain but I'm sure I saw it mentioned on here somewhere before.

 

[MBE2017]

Instead of valuing your business why not turn it round and suggest to your potential buyer what sort of offer do they wish to make? If you feel it way to low you can simply ignore, he might however make you an offer you find hard to resist.

By buying you out he kills off at least one competitor.

 

[Clinton]

Thanks, @Matthew1982 , I've been working on a DIY guide to selling your business... but it's far from complete. Whatever I have done on it is already public (for free, no email address required) and I'll keep adding to that when I get a chance. Promise. It's been crazy busy here.

However, I don't think that a 20,000 word guide is necessarily useful for a micro business of this nature. For the kind of money we're talking here it's not even worth paying £150 pm or whatever to the likes of businessesforsale.com to run a nationwide campaign. The OP is best off finding local parties who are in a position to take this on and he's probably best off speaking directly with them.

 

[SHADES Limousines]

I am trying to sell privately Clinton. Due to the fact of what you have described in your post. It's too small for those that sell business's for others.

tbh I have put a price forward for the limo and bookings only of £7,000. Not a bank breaker but tbh the cars you can pick up quite cheap and then with all the glass's, ribbons etc and bookings on top. Not the business name, reputation and website though

 

[JEREMY HAWKE]

If the trade is there ,There must be enough good will to put a package together .
The value of the car is irrelevant the OP is not just selling a car he is selling an established and working business .

I have always said it does not matter if you don't have any vans The most important thing is getting the business in . I can get 6 vans in the next hour from the hire company if I suddenly need them .
This renders a vehicle the least important asset in my view if established trade is with the business .
I'm guessing limos are a lot harder to come by than transit vans but you could probably get one quick if you need too !

 

[Sean Mallon]

Shades, someone will probably buy this from you - the key at this level (sub 10k) is to have low/no expectations and accept the market will decide what it's worth to them.

 

[SeanQ87]

You could probably get someone to do it for you for a fee.