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Posted by Bubba on June 14, 2007, 6:39 pm
>wrote:
>
>>> Speaking as one who sold their hvac business back in 99 to a large
>>> company, I dont have any magic as to what you can ask for the
>>> business. In the end, the purchaser is only going to pay what they
>>> think it is worth.
>>> I can tell you that what they are interested in is:
>>> Service Agreements
>>> Customer base (made up of actual useable customers)
>>> Your phone number
>>> Your company name
>>> Tools and trucks are considered minor unless you have a fleet of brand
>>> new vans.
>>> You building is usually worthless to them.
>>> Bubba
>>
>>Excellent Bubba
>>
>>Service Agreements - NONE...never believed in them for the 33 years I have
>>been in business. I do have a reasoning for this
>>Customer Base - 2800 customers on the books....most likely 65% repeat
>>customers. A few large Real Estates as customers...brings steady business
>>My Phone number - they can have it
>>Company name - They can have that....they won't keep it long
>>Tools & Trucks...have value anywhere
>>My building ....very profitable...it brings enough to offset just about
>>anything...10 units...4 commercial (I take up 2) and 6 nice apts located on
>>MAIN highway
>
> The hard assets must be valued individually and is not a problem,
>just time consuming, so start making a list.
>
> The value of your business is determined after you let the buyer or
>representative look at your books for the last few years. You can
>usually figure the value as a multiple of 2 to 4 times gross NET
>annual income. So if you have had a gross net of 80,000 before your
>imaginitive tax calculations, then your business is worth about 160k
>to 320k plus all the used assets value.
>
> Intangibles such as good will are impossible to value which is why
>the multiple of gross net is so attactive.
>
>HomerS
>.
>
Homer,
Your post is late and your calcs are way off? Have you actually sold a
hvac business before?
Here's a big big clue.
When you go to sell a hvac company there is not a list of 50 companies
beating a path to your door to hand you a million dollar check.
If you are lucky, you will find ONE company/person interested. I got
even luckier. I had two. One was very interested and was ready to hand
me that check almost immediately. Only problem was, it wasnt a million
or even close. The other co was interested but kept dragging their
feet. I wasnt interested in waiting a few months. It was gone in less
than a week.
Bottom line is, ........your company is worth what the buyer is
willing to pay.
Bubba
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