Advice on selling our business
ShelliDowns
Posts: 7 Forumite
We have a relatively successful and well-regarded car body repair garage but, as my husband is re-training to go into IT, we are looking to sell the business if that's possible.
The issue is that the industrial unit is not under a formal commercial lease, only a rolling monthly contract. The estate is family-owned, for hundreds of years, and that is the way they work so no scope to take on a lease from them for the unit.
It has a custom (permanent) spray booth we built ourselves and the necessary tools to carry out car body work. To buy a spray booth new is around £10-15k and used is around £5k, but they are normally moveable. The tools have a value of around £3k.
With these factors in mind, does anyone have advice on what would be a reasonable asking price if we were to list it? Or is it a case of just trying to sell the tools?
Many thanks in advance
The issue is that the industrial unit is not under a formal commercial lease, only a rolling monthly contract. The estate is family-owned, for hundreds of years, and that is the way they work so no scope to take on a lease from them for the unit.
It has a custom (permanent) spray booth we built ourselves and the necessary tools to carry out car body work. To buy a spray booth new is around £10-15k and used is around £5k, but they are normally moveable. The tools have a value of around £3k.
With these factors in mind, does anyone have advice on what would be a reasonable asking price if we were to list it? Or is it a case of just trying to sell the tools?
Many thanks in advance
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Comments
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sole trader?
partnership?
limited company?
you list second-hand value of some assets but say nothing about the turnover and profit.
Therefore the amount of possible "goodwill" which is the basis of any asking price greater than the cash in value of some used assets.
seems to me you are not selling a business, you may as well just the bits on ebay and let the market find their value.0 -
sole trader?
partnership?
limited company?
you list second-hand value of some assets but say nothing about the turnover and profit.
Therefore the amount of possible "goodwill" which is the basis of any asking price greater than the cash in value of some used assets.
seems to me you are not selling a business, you may as well just the bits on ebay and let the market find their value.
Sole trader (husband), turnover £80k0 -
Can the booth be relocated? If not then it might not be worth a lot. In fact it might cost you money to demolish it if you could not find anybody who wanted a car body shop in that location.
There is no formula for coming up with a price. It is just worth what someone is willing to pay.
Does the OP's husband have employees or is he own his own? If he is on his own then the business's success is likely to be largely dependent on him and any value over and above the value of the assets is likely be small or non-existent.0 -
If the premises are under a rolling monthly contract, does this mean the landlord only needs to give the tenant a month's notice? If so, then there is very little (if any) value in the business.If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales0
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Maybe the best way to get any value out of it is to sub-let it on the same (monthly) basis as you currently rent it. You can charge your tenant more than you're being charged by the landlord to reflect the use of the fixed plant/equipment such as car lift, spray booth, etc.
(All assuming the landlord will allow you to sub let).
I have a client who trades with a little cafe/takeaway on a shoreline under a rolling monthly rental "contract" to use the kitchen equipment, tables/chairs, etc. She sub-lets it from someone who has a similar informal agreement with the ultimate landlord. The person in the middle makes a premium/profit on the difference between rent paid and rent received.0 -
Maybe the best way to get any value out of it is to sub-let it on the same (monthly) basis as you currently rent it. You can charge your tenant more than you're being charged by the landlord to reflect the use of the fixed plant/equipment such as car lift, spray booth, etc.
(All assuming the landlord will allow you to sub let).
I have a client who trades with a little cafe/takeaway on a shoreline under a rolling monthly rental "contract" to use the kitchen equipment, tables/chairs, etc. She sub-lets it from someone who has a similar informal agreement with the ultimate landlord. The person in the middle makes a premium/profit on the difference between rent paid and rent received.
Not a bad idea0 -
Whereabouts is the business located?
I think, subject to profitability, there's some value in this.Don't lie, thieve, cheat or steal. The Government do not like the competition.
The Lord Giveth and the Government Taketh Away.
I'm sorry, I don't apologise. That's just the way I am. Homer (Simpson)0 -
inmypocketnottheirs wrote: »Whereabouts is the business located?
I think, subject to profitability, there's some value in this.
North London0
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