Hi all,
Its been a while since I have posted a discussion on here, things have been hectic work wise!
I have been doing a lot of thought over the last few months and I am considering selling my grounds maintenance business and starting a new career. I started my gardening business up in Bromley, Kent about 8 years ago from nothing doing just doing local gardens to now where I'm maintaining mostly contractual work, from grounds for large housing estates to commercial companies etc. I employ 2 other gardeners full time and one part time. We have two 2004 Renault master vans MWB, ride on Etesia mower, 5 self drive mowers (Honda, John Deere and toro's), Stihl long pole hedge cutters, strimmers and blowers etc
I would be interested in any advice from anyone on how I could go about selling my business, where I should advertise etc and any other advice related
Thanks
Gary
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Replies
It very much depends on your turnover, profit margin, and NPV of your assets that you are selling.
If you're making a net profit of £50,000 a year, you could be asking £200,000 +.
I am not sure the textbook NPV holds up in UK, in the US maybe yes, where landscape maintenance is more established
The market is 'awash' with potential businesses to buy and many are overpriced using old methods of valuation from when we had a buoyant market. Sole Trader businesses are especially problematic to sell.
I wonder how many business have written contracts for the services they supply to their clients?
In the current market, the value is more to do with your 'contracted' customer base. Many domestic business clients 'buy' services on a personal level and often do not take well to being 'handed' over. So really you are buying assets and a % of potential goodwill based on a lower value.
I have looked twice in the last 4 years to buy additional business and from conversations with the sales agents often the most successful method is a phased payment handover based upon an agreed value.
I would approach one of the specialist agents who can assess your business and give an approx value.
Here you go, some examples of what is up for sale at the moment;
http://uk.businessesforsale.com/uk/search/Gardening-Businesses-for-...
Note the correlation of profit to sale price (or not as the case may be..)
n.b. Also notice the number GT Franchises up for sale ;-) ?
Gary RK said:
My point, Colin. It does cause a sharp intake of breath...
The business I tried to buy was (ultimately) overpriced according my Accountants. The deal (which included premises, a retail side and profitable service side) fell thru, and within 18 months it had closed down as the current owners held out for silly money and let it decline.
Perhaps, some people who have successfully sold their business can comment further.
Gary RK said:
Thanks for the comments so far, any idea Gary RK of a good specialist agent?
I can't recommend anyone in particular (trying to find who I dealt with years ago), but on that website should be a list of agents..... BUT don't, don't part with any money for fee's and don't sign any contracts etc until you know the situation (and/or have spoken to a Solicitor/Accountant) . That area is a bit unregulated and can lead to loosing money on non-refundable fees....:-(