Selling my Business after 25 years..

#31
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Goin on ten years now....
If I knew retirement was this much fun. ...
Id'a done it way sooner

10:00 am...Let's make a deal
11:00 AM...Price is right
12:00 pm ...millionaire
12:30 pm Young and the Restless
1:30 pm....garage break
2:00 pm ..Fox news
3:00 pm...nap
4:00 pm..Judge Judy
5:00 pm early bird special
6:00 pm..Hawaii Five-0
 
#39
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ya they stopped making my Atenolol
and getting the doc to script something else ain't working

my wifes BP was 209 over ninety something a few days back
would NOT go to the hosp...stubborn as they get.
 
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#44
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Nusteem
I have purchased 2 very small O/O companies in the last 3 years. I looked at a 3rd and could not make it work.
If I where looking at your business to purchase here are the things I would be looking at.

1. How clean are your books? Do you run your personal finances from your company? I hope not, I have seen it.

2. How accurate are your customers records? Do you have the full contact info for every customer including email? Are your records on a scheduling system like Camelot or Service Monster?

3. What is your client count for the last 3 years? How many customers have you served? I do not really care how many people you have serviced in the last 25 years. I would be looking for 1500-2000 customers that repeat every 15-18 months.

4. What is your repeat customer rate? Can you prove it with accurate records? I would be looking for 60-70% for a 25 year old company

5. How strong is your internet presence? Do you have a mature web domain? Do you have multiple phone numbers? Do you have a business location with a strong Places listing? I would be looking for first page listings. Do you use a cell phone or a land line. Cell purchases are a pain in the butt for multi trucks to buy.

6. How systematized is your sales and marketing process? Do you have records of the results of your marketing campaigns?

7. What is your Gross for the last 5 years? Are you growing or flat? What is your net? Can this be seen in Quick books and your tax returns without the comment I take another $25k in cash. I can't buy that.

8. How clean is your equipment? How old is it?

9. What is your average residential job? I would want $260 or up What is your average commercial job? I would want $350 or up.

10. How much monthly regular commercial work do you have? Not a they call me regularly. I am talking you show up the first Tuesday of every month type of stuff and you have been doing it for 2-5 years. I would be looking for a good one truck operator having 4-6k of this per month.

11. Do you do all the work or do you have employees if it is just you I would think 20-30% will leave my when I buy you out.

So let's say you did $175,000 last year and could say yes to most all of these questions. Lets also say your net is $110,000 without trying to add in a bunch of I take 2 vacations , car lease or other stuff.

So $14,500 monthly

You have a truck that is less than 4 years old. a bunch of well taken care of equipment. Which I have yet to see. Your truck is a national brand not some piece of junk you built with some buddies.

Lets also say you have 4 k of monthly commercial work.

Here is what I would be willing to pay for a company that could say yes to 95% of those questions I just asked.

30% of the first year commercial $14k . This means I will manage or work this for the first year for no profit. I will have to pay myself or a employee to do the work. I will have equipment and overhead.

A 4 year old truck $32k for top of the line CDS 4.8 less for other stuff. I would pay cash up front on this.

$5-8 k for misc equipment if in great shape. I mean great shape $2k if it is all dirty and aged. Most of this I would probably not want and you would do better to part it out.

So here is my offer if again you could say yes to 95% of the questions I asked.
Money up front for your truck cash $32,000
1 months revenue $14,500
30% of 1 years commercial $14,500
Strong brand and internet misc equip $5,000
Total offer $66,000
paid in 3 installments over 90 days to insure a good transition. With performance clauses

This means if you where a owner operator and you bought your company you would earn $44k your first year. If I were a multi truck I would be able to pay an employee's salary for one year. After one year I am not managing your business for free.

Now if your records are bad you have no commercial and you tell me I don't need to advertise and the business is built all around you.

Cash for your van and one month's revenue. Too much risk. I would part out your equipment gut it out for the first 2 months and hope for the best.

If you cannot answer yes to most of the questions I asked maybe you want to spend 18-24 months getting your records together so you can ask more.

The sad things in this business is that the entry level into the industry is so low. If someone who would be a O/O had say $200k (which many on this board would say there company is worth by saying 1.5 annual sales) why would you just not buy a used truck and go for it yourself someone with that amount of cash they earned probably has some smarts.

If you are a multi truck and you had $200k you could be on tv on 4 channels monthly and most certainly increase you business $175,000k.

The honest fact is most O/O companies are worth the wholesale cash value of the equipment and 1 to 2 months revenue no more.I do not care what some CPA has to say they don't pay the bills.

It would be the rare company that can get one year's revenue for a sale price. If I where selling I would go look for solid 2-4 truck companies to approach selling to. The big boys 8-10 trucks will not want to pay and the guys off the street will want you to hold the note. If you have set a realistic selling price just like real estate things go fast.

You might be able to transition as an employee for a period of time to help your transition. They are also the type of companies that could benefit the most.

I would have cash tomorrow for the right deal in my town.

Good luck in your next endeavor and selling you business. I am sure you have worked very hard over the last 25 years.
After reading this list, my business will be dissolving when I turn 62...(just 10 years) But just for the hell of it, anyone interested in my domain name in 10 years www.lasvegastileandgroutcleaning.com call now to reserve!
 
#45
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Probably better to train someone to run the business before you kick the bucket and take a % of business from him on every job and an option for a balloon payment when ready to lose you as a partner...That's what I'm thinking...It's hard to be a hustler, and hustle someone to be a hustler like me...When I play poker my line to the fellas at the table is "you cant fake a faker"...LOL
 
#46
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bob vawter
the secret to selling yor business is finding some dumb smuck wit enough money to buy it.......
i been using that line for a while now....and still think it's as funny as when i first came up wit it...HOWEVER
it helps when the person thinks he knows more than the seller,,,,,
no way would i let a stranger root his snout thru my numbers and customers...no frickin way!
Ride along......see how many jobs i do a day..and how many chems it takes to do it....you can glean enough info from that ..OR MOVE ON!!!
 
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#47
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Land lines are going to be a thing of the past. Att is phasing them out. They are moving every one to these cell boxes you put in your business. They are working on a 5g system right now. Talked to a old att line guy and he said in three years he will be out of a job. In January I'm going to move my number over to one of these boxes because my land line keeps going out and they are not going to do any repairs. $90 a month vs $30 a month and I can move the phone with no wiring mess.
 
#48
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Is there anyone here who doesn’t understand why Bawbs wife's blood pressure is high?
I'm pissed. I cut back on the junk I eat, and i'm still gaining weight WTF!! I don't get it. I work my ass off sweating like a horse pushing a wand all day, I should be skinny. I think my body is revolting on me. The more granola I eat, the fatter I get.

upload_2017-11-26_7-17-48.png
 
#53
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I'm pissed. I cut back on the junk I eat, and i'm still gaining weight WTF!! I don't get it. I work my ass off sweating like a horse pushing a wand all day, I should be skinny. I think my body is revolting on me. The more granola I eat, the fatter I get.

View attachment 75977
Calories from the liquids you drink.... Many Americans get more calories per day from their drinks than from their food....

I made a deal with myself----if I never eat until I am full I will never be overweight. 6'3 199#....
 

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