Selling buisness
#3294575
08/28/12 08:21 AM
08/28/12 08:21 AM
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DaveK
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DaveK
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I was just recalling the recent WCT article about valuing a business. I started thinking about the guys on this board looking to break into ACD work. Anyone out there thinking about getting out? This might be a good place to get some interest in your business.
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Re: Selling buisness
[Re: ]
#3295253
08/28/12 05:28 PM
08/28/12 05:28 PM
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DaveK
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DaveK
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Re: Selling buisness
[Re: ]
#3295435
08/28/12 07:20 PM
08/28/12 07:20 PM
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Joined: Jul 2007
Posts: 25 Nashville, Tennessee
John Pearson
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Posts: 25
Nashville, Tennessee
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Dave, That's a great post.
Just think, a turnkey operation with equipment, vehicles, trained technicians, customer base, referring partners and advertising already in place. You just have to have to keep it going!
I've thought about possibly doing that and teaching/mentoring the new owner for several months until things ran smoothly. Of course you can't learn this biz in that short amount of time but if you have great people working for you it sure helps.
John
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Re: Selling buisness
[Re: ]
#3295487
08/28/12 07:45 PM
08/28/12 07:45 PM
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DaveK
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DaveK
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It definitely takes a solid year to experience all the seasons.
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Re: Selling buisness
[Re: ]
#3295561
08/28/12 08:23 PM
08/28/12 08:23 PM
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Joined: Dec 2006
Posts: 8,329 NWWA/AZ
Vinke
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Your business will not be worth as much as you expect...... b John Constalinie (sp) who had been in business since the 80's in Seattle did not get NEAR what I would have thought it was worth,,,....
Slightly used Shoes 4 sale
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Re: Selling buisness
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#3296283
08/29/12 07:42 AM
08/29/12 07:42 AM
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Joined: Mar 2007
Posts: 1,875 Gainesville, Alachua, Florida,...
Robb Russell
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Gainesville, Alachua, Florida,...
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As discussed in the May/June 2012 WCT Magazine In The Spotlight article, there are 4 common evaluation methods: sales, assets, cash flow, and market valuation. x2 I held a real estate license in Florida and sold a few business'. Much of what Eric wrote is very real world and much of that I also discussed on July 25, 2010. What Is My Business Worth? 7/25/2010Many times in the business the question of selling one's business or what a business may be worth. We will spend about 30 minutes and discussed some principles of nuisance wildlife control business appraisal. http://animalremovals.net/what-is-my-wildlife-control-business-worth/ I just remembered I have a podcast about that at least related to this topic. This was the first time I interviewed Dave Schmidt CWCP of St Louis MO who also posts here and has done several podcasts with me since. Duane "Dew" Haske, Reginald Murray were also part of the podcast. I also gave a class on how to use spell check on trapperman " Pesky " !!Dave caught St Louis's first armadillo yesterday. Congrats Dave !!
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Re: Selling buisness
[Re: trapper4hire]
#3296296
08/29/12 07:59 AM
08/29/12 07:59 AM
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Joined: Dec 2006
Posts: 982 northeast ks
conejo
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northeast ks
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I have heard more than once the generic formula is the last 3 years average gross, and I think there is an equipment/vehicle depreciation variable as well. I know this has been the case around here twice. that doesnt mean that all adc bus will sell for that price as with any bus. acquisition ther are many variables; outstanding debt, potential for gowth etc. I'd be gone in a heartbeat if I could get that!!!
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Re: Selling buisness
[Re: ]
#3297458
08/29/12 10:15 PM
08/29/12 10:15 PM
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DaveK
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DaveK
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For what it is worth, here is an opinion. There is a difference between being self employed and being a business owner. The value of a business will be greater for a investor that is not required to work in the business (just on the business). Perhaps, this is another reason why ADC businesses do not sell for the value that owners believe it is worth. Your buying cashflow, goodwill, some trucks, and a bunch of traps with raccoon poo. The value is the cashflow and goodwill.
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Re: Selling buisness
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#3297791
08/30/12 08:35 AM
08/30/12 08:35 AM
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Joined: Nov 2009
Posts: 843 NH
sgs
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NH
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There is a difference between being self employed and being a business owner. The value of a business will be greater for a investor that is not required to work in the business (just on the business). Well said Dave. The self-employed tradesman owns a business but not one that can readily be sold because *he* is the business. The rest is just a pile of used tools. Out of the list of assets that John Pearson listed, the only things valuable enough to be important to a businessman are the trained techs and you can't really sell them. They're free to leave at any time.
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Re: Selling buisness
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#3297800
08/30/12 08:48 AM
08/30/12 08:48 AM
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DaveK
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DaveK
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How could I forget the people! There is value...assuming a good chance of retention.
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Re: Selling buisness
[Re: sgs]
#3297831
08/30/12 09:18 AM
08/30/12 09:18 AM
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Joined: Jul 2007
Posts: 25 Nashville, Tennessee
John Pearson
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Nashville, Tennessee
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I agree. The trained employees of a company are the company's greatest asset. Knowing the tried and true methods of solving problems, and having a personal rapport with your established commercial accounts, and being able to communicate with potential new customers. In my opinion having the advertising in place is also very important. SEO takes a while to make an impact and creating effective print, internet, radio and TV ads take some trial and error. Also it doesn't hurt to have "pre-scented" squirrel, skunk and raccoon traps
John
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Re: Selling buisness
[Re: ]
#3297885
08/30/12 10:05 AM
08/30/12 10:05 AM
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Joined: Nov 2009
Posts: 843 NH
sgs
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NH
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In my opinion having the advertising in place is also very important. John, I was going to mention that. I don't know why I didn't. lol An advertising history is valuable as long as the new owner is going to keep the company name but I'm really not sure how you can determine what that value is. Years ago I was friends with a guy who had a retail business. He had been in business for twenty years and when he went to sell found his business was worth the sum total of his inventory plus equipment (shelving, counters, cash registers, time clock, etc.) At first he was a little bitter at being told that all the work that he had put into the business had no value. After a while he got used to the idea and admitted that it really didn't have value....to a prospective buyer. It had great value to himself and his family and he was satisfied with that.
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Re: Selling buisness
[Re: ]
#3297988
08/30/12 11:45 AM
08/30/12 11:45 AM
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DaveK
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DaveK
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Kinda the same as cash flow history...
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Re: Selling buisness
[Re: ]
#3698606
03/12/13 08:22 PM
03/12/13 08:22 PM
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DaveK
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DaveK
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Re: Selling buisness
[Re: ]
#3699024
03/12/13 10:25 PM
03/12/13 10:25 PM
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Joined: Jul 2007
Posts: 25 Nashville, Tennessee
John Pearson
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Nashville, Tennessee
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Interesting post and website Dave.
I'm not familiar with that part of NY, but it appears the population of that town is around 1700. I don't know that I could make that kind of money with a small customer base like that.
John
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Re: Selling buisness
[Re: Anonymous]
#4652555
09/18/14 06:01 PM
09/18/14 06:01 PM
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Joined: Jul 2008
Posts: 1,361 mequon, wisconsin
Paul Winkelmann
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mequon, wisconsin
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I'm going to try and be the tie-breaker between Bob's post and Dave K's boo. In real life I am actually Bob. I have done this long
enough that I pretty much know what a normal animal will do before he does it. Besides that, my wife has noted that since a large
portion of our customers are even older than me ( If that's possible ) they actually prefer me to some of our younger techs. (After
all, who else are they going to be able to discuss "Prohibition" with? ) On Dave's side of the coin, I've said this before and I'm
proud to say it again; My son P.J. doubled our business gross the very first year that he joined us and if we could clone him, we
would be a Fortune 500 company in a year. I truly agree with Bob that we cannot easily be replaced but I've been catching critters
since 1955. Even some of the animals have asked me to "hang it up already"! Don't worry Bob, I do enough worrying for both of us.
Last edited by Paul Winkelmann; 09/18/14 06:03 PM.
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Re: Selling buisness
[Re: Anonymous]
#4654682
09/20/14 09:28 AM
09/20/14 09:28 AM
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Joined: Jul 2009
Posts: 193 Tipton, IN
Travis Wolford
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trapper
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Posts: 193
Tipton, IN
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When I cross over Jordan I will be retired....not much of a strategy but its an honest one. Never been able to sit around.
it is not a stupid question if you do not know the answer
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Re: Selling buisness
[Re: Anonymous]
#4655125
09/20/14 06:14 PM
09/20/14 06:14 PM
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Joined: Jul 2009
Posts: 193 Tipton, IN
Travis Wolford
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trapper
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Posts: 193
Tipton, IN
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Cure? There are cures out there but we aint gonna hear about it. Aint no money in cures, gotta treat for the money! JMHO
it is not a stupid question if you do not know the answer
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Re: Selling buisness
[Re: Anonymous]
#4655467
09/20/14 11:05 PM
09/20/14 11:05 PM
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Joined: Aug 2007
Posts: 522 North Branch MN
Lundy
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trapper
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Posts: 522
North Branch MN
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Well no body makes it out alive. You may get Cancer, you may get treatment that prolongs your time, but you are going to die. You can eat all the right foods, never get close to tobacco, alcohol, drugs or any Cancer causing agents. But get hit by a bolt of lightning. Or die in a freak accident. Or get hit by a car while crossing the street. No body lives on Earth forever. I have come up with a new theory on what Heaven or He.. is like. You experience many things while on Earth. When you cease to exist here you go into an afterlife. If you spent your time trying to be good to fellow people, live happy and ask for forgiveness for your mistakes then you will spend the rest of time remembering the things you did and the people you did them with. If you do bad things to people and yourself, do not ask for forgiveness then that is what you will spend eternity remembering. In our Human form we are free to make choices. We can do bad things, we can chose to continue to do bad things or we can see the error of our ways and decide to change. When we decide to change, we basically are asking for forgiveness, for what we have done wrong and we get to remember the good things we did. Doesn't this sound like the answer to LIFE? It does to me. It just has taken 54 years to figure it out.
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