How Much Could You Sell Out For?

Scott Stone said:
It depends on the day and the cash. Right now, my business is pretty valuable. I would have to get 7 figures just to think about selling.
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curious, with GOV agreements hows that work? The city would have no issue with ownership transfer?
 
Tony Shelton said:
Be careful about hiring a professional. I hired one for Vegas Valley Valet Cleaners. He was charging me $18k to help sell it with a one year term agreement. In exchange for that he advertised the sale in two places in the middle of about 50 other businesses he had for sale. He already had the ad block paid for. After a month he never returned my calls.

At the 10 month mark I called him with this message "I found a buyer for the business".

THEN he called me back and wanted to "meet" the buyer. (to ensure he got paid his $18k)

I told him met the buyer by talking to one of his delivery drivers and following him back to the owner's office. The owner wasn't looking to purchase another business, but I was able to convince him it was worth his while. The guy demanded his commission. I told him I'd be glad to pay him for our portion of the ad space, but he had really done nothing to deserve $18k and hadn't even returned my calls in months. I got no where with him but a threat of a lawsuit.

So we delayed the sale for two months and I didn't send him jack for his ads and never heard from him again.

Just be careful with these guys, they will tie you up so you can't sell it yourself if you're not careful.
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Good advice Tony. As with any important decision.......Do Your Homework!
 
If they are assigned to the company (and not the individual) it should not make a difference with gov contracts. I've sold a couple businesses as well and they are only worth what someone is willing to pay for them. In both cases they were ran into the ground unfortunately. People buy into a business thinking its all easy money and find out otherwise real quick. One I wish I would have never sold but such is life...
 
Greg is right. If you are a sole proprietor, you can sometimes run into problems. I am incorporated. The corporation is the entity responsible for performance of the contract.
Greg is also right, that if someone doesn't have deep enough pockets to cash me out, I am not interested in selling. It would be too easy for someone to mismanage it and run it into the ground.
 
Greg Rentschler said:
If they are assigned to the company (and not the individual) it should not make a difference with gov contracts. I've sold a couple businesses as well and they are only worth what someone is willing to pay for them. In both cases they were ran into the ground unfortunately. People buy into a business thinking its all easy money and find out otherwise real quick. One I wish I would have never sold but such is life...
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So you know most master service agreements in private sector say no. All my 500 companies do not care. Nearly all have exclusion for sub contracting.

I have had a couple gov accounts, nearly every city in metro area. I have never seen on that would stop anyone from selling. I actually seen a companie sell a contract to another bidder once.


Text me anytime for question 480-522-5227
 
Ron Musgraves said:
I was bating the question , I wanted to see the answers. We all want to know the contract Greg how large did it become?


Text me anytime for question 480-522-5227
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Contract? I don't have any long term contracts - just a lot of 3rd year repeat customers. Someday I hope to break out all of the pressure washing into a separate entity (the company is already there) and go after that stuff more but for now we just do it through TimberSeal. Still 95% wood care though... Complete some decent size projects for several of the municipalities and HOA's every year and I like that stuff :)
 

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Greg, the jobs for the municipalities and HOA's, do you have to put in a bid and they do the whole bidding process with a lot of contractors or do they just use you as you give them professional results consistently? Just wondering.

Thanks.
 
Greg Rentschler said:
Contract? I don't have any long term contracts - just a lot of 3rd year repeat customers. Someday I hope to break out all of the pressure washing into a separate entity (the company is already there) and go after that stuff more but for now we just do it through TimberSeal. Still 95% wood care though... Complete some decent size projects for several of the municipalities and HOA's every year and I like that stuff :)
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Greg, that truck is awesome! Looks good man keep up the good work.
 
Greg Rentschler said:
Contract? I don't have any long term contracts - just a lot of 3rd year repeat customers. Someday I hope to break out all of the pressure washing into a separate entity (the company is already there) and go after that stuff more but for now we just do it through TimberSeal. Still 95% wood care though... Complete some decent size projects for several of the municipalities and HOA's every year and I like that stuff :)
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Greg you have always been the real Deal, I have known you over 12 years now. Time Flys, you bought one of my first machines by accident...LOL thats pretty funny. My brother lives a few blocks away from you.

I wanted to say Greg you have always been a very impressive helpful person. I like your attitude with Family an business, hope we get to have another cup of coffee one day soon.
 
Christopher said:
Greg, the jobs for the municipalities and HOA's, do you have to put in a bid and they do the whole bidding process with a lot of contractors or do they just use you as you give them professional results consistently? Just wondering.

Thanks.
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Started out as a typical bidding process like anyone else. We have a several that just call us out for service now though and don't pull bids. Two local cities in particular give us the post event clean up for the festivals each year. Another has us take care of all of their water towers, storage tanks and community center (wood) on as part of their routine every couple years. They alone send us almost a 70K in work every other year which is nice.
 
Thanks Ron,

Still have that machine in one of our stain trucks as a back up unit. It's still like new practically. Slowly weeding out the cargo vans so it will probably go to another home soon. Still have the Water Jet as well - need to put it to use more :)
 
Greg Rentschler said:
Thanks Ron,

Still have that machine in one of our stain trucks as a back up unit. It's still like new practically. Slowly weeding out the cargo vans so it will probably go to another home soon. Still have the Water Jet as well - need to put it to use more :)
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We all can use more Hard surface cleaning for sure. Do you wash and seal Pavers?
 
Ron Musgraves said:
We all can use more Hard surface cleaning for sure. Do you wash and seal Pavers?
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Yes we do - got a message that you called. I'm actually leaving with the family to go to the lake for the day in a few minutes so we'll talk later.
 
Just so everyone understands, most cities have a bidding process. Around here, everything over $25,000 a year needs to be bid. Under $25,000 needs to be a quote, and under $5,000 can just be awarded. Other areas and states may be different. They also can attach to another contract that has been bid out, and can renegotiate the terms to fit their particular city or project.
 
Thanks for the info Greg and Scott.
 
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