Need help to price my company (1 Viewer)

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Good afternoon,
I've been running my company for 10+ years now and we're doing ok if a little quiet at the moment. I have been approached by someone who wants to buy a scaffold company that is a going concern, I am giving this serious consideration but I have no idea about how to value it. Can anyone offer me some advice on where to start? I rent the yard so basically it would be a price for 2 x 7.5 ton Lorries, all the equipment, my client base and our good name. Any advice would be gratefully received. Pete
 
I think you need to be realistic but at the same time not give it away & it depends on how much you really want to sell. But if you were trying to make it atractive to a purchaser - i think total your stock ,vechiles & assests the reduce there cost by 20% - any current contractual obligations you may have with monies coming in but not done yet i think youd be a fool to give away for less than 50% - that way any potential purchaser knows he's gonna have immediate returns to his investment
 
Selling business

I've been told that as a general rule of thumb you charge for all your equipment plus the previous three years takings, what do you think?
 
Ive never heard of that tbh but there again i have never looked into it as i dont want to sell up but tbh i cant see how that would be valid- if you had 3 good years but FA on your books for future work due to losing contracts all your selling would be your stock & good will - where as lets say your assests are worth 100k but no future work ,then why wouldnt they just buy 2nd hand gear & a lorry from somewhere else - whete as if you say your assests are 100k & youve got 60k worth of work on your books then i would of said offers circa 110k would be more realistic.but what are you going to do with yourself once u sell up....leave the game or stay in & work for someone else & watch them earn off your hard graft & experiance
 
Your accountant will probably give you the value of your company so best talk to him. Check the cost of used gear and trucks to see the value of it compared to the value the accountant gives. I know a few who sold up and part of the deal they were kept on as managers. It can be hard watching someone else running what you have built up as Sp said so make sure it worth your while
 
Thinking of selling to start up something else, getting too old for scaffolding! I don't want to retire, I just want to do something less demanding.

---------- Post added at 05:20 AM ---------- Previous post was at 05:16 AM ----------

I spoke to my accountant yesterday and he said it's not really the sort of thing he does. He said it would take him a couple of weeks to get the information I needed and he hasn't got that sort of time to spend on one company, so no help coming from him. We looked at a site called 'We buy any company' but they don't really help without you committing yourself. It looks like I'm just going to have to count everything I have and work it out from there.
 
Surprised your accountant does not know the net worth of your company as surely this is something he puts on your tax return every year?

1. Work out how much you have roughly in gear.
2 Work out what you want for your two wagons their current re sale value.
3 Work out whatever other fixtures/fittings stock etc. you have to sell including all assets.
4 Put a price on your SAV - goodwill value.
5 Price whatever contracts you have along with ones coming up and your client database.

Put this all together and you should be there or thereabouts. You can't be too over the top as there is nothing to stop the person just buying a load of gear, couple of wagons and starting up themselves!!
 
Thanks for all the replies, some really good ideas/links there. I'll definitely contact someone who can help me with a valuation.
 
Average nett profit from the last 3 years X factor of 3 + value of assets will give you a starting point
At the end of the day it is only worth what someone will pay, good luck

I will be selling in 6 years time when I reach the big 60
 
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