Success in selling the company

I was just wondering if anyone has had any success in selling their company? I am looking to sell in about 1-2 years and just looking for some advice. Thanks

Sam Moseley
M&W Pressure Washing LLC
Lakeland FL
 

junker1

Roundtable Host 2009
I believe the only part of the business that is worth anything is the equipment. And after 5/8 years of use that isn't worth much.
 

Scott Stone

New member
It depends on what type of work you are doing. Are you doing recurring work like commercial? Do you have to do the work, or do you have a crew based operation? What kind of margins are you turning? If you are only making $80,000 a year, and you are doing the bulk of the work yourself, I would be surprised if you can sell it.
If you are in the Million dollar range, and have crews doing the bulk of the work, all with recurring income from established contracts, you might be able to sell it.
 

Scott Stone

New member
Figure a year net, maybe two, if you are lucky. I know of a guy trying to sell his pressure washing business at 3.5 times his annual net. He does have a lot of equipment, though.
 

AZ PowerWash Pros

New member
I have spoken with a handful of brokers in the Phoenix area. My goal is to eventually sell.
I have been told between 2.5x's to 3.5x's your net income. Right now most businesses are selling for 2.5x's and its ALL TIME LOW capital gains tax. But I believe its rocketing back up next in the new year. Most companies cant sell without at least 4 years of clean books and an effective system in place so the owner does not have to do much more than make decisions. If you have an operation that runs itself people love those types of businesses. They are more simplistic to learn than some other businesses and people like buying service companies in general.
 

GrassButler

New member
Its worth what the market will bear… if someone is willing to pay….. It can be done.. You can sell the business, accounts, and equipment and offer to work in the transition for 4 weeks. People are always looking to spend their retirement savings on what they think is their golden ticket…… And they have the cash to purchase it, but not the knowledge to make it work….. ( of course this may never happen too ).. They can buy it from you or buy a franchise of some sort.. either way they will spend their money!!
 

Johnson

New member
can your contracts be voided if you sold your company? I ask this because what happens to someone that buys a company and the customers don't like the way the new owners do business?

Then that's the buyers fault. If you can keep them happy for X amount of time them there's no reason the buyer shouldn't be able too.
 

Tony Shelton

BS Detector, Esquire
Service companies vary a lot with the economy. I've sold two of them. The state of the economy made a HUGE difference in what I got for them. We did much better on the one sold in 2006 than we did on the one sold in 2010.

And don't listen to brokers. I went through five of them.
 

AZ PowerWash Pros

New member
Service companies vary a lot with the economy. I've sold two of them. The state of the economy made a HUGE difference in what I got for them. We did much better on the one sold in 2006 than we did on the one sold in 2010.

And don't listen to brokers. I went through five of them.

Tony you sold on your own without a broker? I am thinking about doing the same. But I did want to hear what they had to say. I will probably try to sell on my own when Im ready.
 

Tony Shelton

BS Detector, Esquire
Tony you sold on your own without a broker? I am thinking about doing the same. But I did want to hear what they had to say. I will probably try to sell on my own when Im ready.

Vegas Valley Valet Cleaners was on the market for 2 years. Sold it on the third phone call to competitors 20 days after the last broker contract was up. Got 1/2 cash and 1/2 in pre printed checks over a year. Also kept jobs for some of the employees.

Sent from my DROID RAZR HD using Tapatalk
 

AZ PowerWash Pros

New member
Vegas Valley Valet Cleaners was on the market for 2 years. Sold it on the third phone call to competitors 20 days after the last broker contract was up. Got 1/2 cash and 1/2 in pre printed checks over a year. Also kept jobs for some of the employees.

Sent from my DROID RAZR HD using Tapatalk

Sweet! I want to save the 10%!! That is big money when you are selling your entire company.
 

junker1

Roundtable Host 2009
Then that's the buyers fault. If you can keep them happy for X amount of time them there's no reason the buyer shouldn't be able too.
Understood. Do most contracts have a termination clause or can they dump you for any reason? It would just make me a little nervous. Joe shmoe might have been servicing all the subways for ten years but when he sells the company subway decides to put all 25 locations up for bid again.
 
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