Noticed on craigslist a business for sale that is a franchise asking price 4 million with annual sales of 3 million. Around + $100,000. In OSHA violations since 2011 agreed payout being $20,000.
This is a crazy asking price.
Company is a franchise, 2011 had a highrise fatality with more violations following the fatality.
Curious on thoughts on the price?
https://minneapolis.craigslist.org/ram/bfs/d/top-of-the-market-window/6632112769.html
Sounds reasonable to me…after all who doesn’t sell things valued at 4 million on Craigslist? Gots to save your pennies where you can.
Seriously, seller might be hallucinating a bit.
Probably thinking that assets are worth about $1mil. So might as well add revenue to assets and try to sell for that much. Worth a shot.
Assets listed are less than 500,000.
I guess I typically see half of annual sales as asking price.
Oops I didn’t add it all up. Well then they, as all sellers, think it’s worth more than the market does. Or maybe $4mil is what the owners need for their new venture, gambling debt, or whatever.
He’s not going to get that. From what I know it’s worth less than that. They do gross a lot but it’s not how much you make, it’s how much you keep.
I wonder how much net income this business makes after paying out all expenses including franchise fees and taxes.
A rough guess would be 150-200 thousand per million of gross.
If a guy paid four million for the business it would take almost seven years to break even.
The seller optimistically claims there is much more room for expansion of gross income.
Which brings to mind the question why he wants to sell. Maybe he is tired of running a service business with lots of risk.
The fact he is so slow to pay the fine indicates a possible mismanagement of cash flow or a troubling low cash flow.
If an inspection proves all is well with this company, what would be a fair price to pay? With all the risk and the fact franchise fees eat away at the profit, $1million would seem appropriate. With this price, the investment could be recouped in a year and a half then the net profits start rolling in.
I’m not trying to be an apologist for companies with OSHA violations but it is very easy to be in violation. once any regulatory agency starts finding violations they keep looking for more. I have been awarded the OSHA General Supervisor Certificate (30 hours of training) and numerous Army safety certs and I was my unit’s Safety Officer when we were deployed for more than 15 months.
In spite of all my training I still have violations: I lift more than 40 lbs. by myself, I have two rebuilt cords, etc. So I don’t know if this company’s OSHA violations reflect chronic abuses or if they are just getting nitpicked by regulators. As far as the timeline for paying their fines a lot of agencies accept payment plans in order to be able to make a point but not be too onerous.
I was asking $100k on a 500k company and couldnt get it.
This guy is dreaming.
This seems like the owner is getting tired of running the company (burned out) threw this ad on CL and is testing the waters to see if anyone is dumb enough to take his offer.
Keep in mind, it’s a franchise, and all the strings that come with that.
I would pose to be interested in the company just to get a look at the P&L though.
I totally understand what you’re saying.
Although this company had a fatality, an employee died. A week later they received many serious violations. If a fatality doesn’t straighten you out what will.
The final violation amount is the amount that was agreed to pay. The cited violations totaled over a $100000, the agreed amount to pay was around the 20000 sorry if I confused anyone.
The seller may be using a broker or just gauging interest by posting on CL. Even if this company is worth $1mil. That means his pool of buyers is quite limited. Anyone here have $1mil in cash? Or access to $1mil financing? I certainly don’t and I assume most on this forum (probably all) don’t either.
The seller is probably going to need to sell to a large janitorial company, a large competitor, or a large franchisee within the same franchise that can operate multiple offices.
I’m sure the franchise is selling this and will also finance.
I’m sure they’re asking for a percentage down then monthly payment.
Is this a squeegee squad franchise?
I wondered the same thing. Not aware of any other high-rise window cleaning franchises. I thought squeegee squad was HQ’d in Texas or somewhere in the South. But I’m probably wrong.
Yes, headquartered in mn
Likely half sales is window cleaning with remainder split pressure wash and snow
Who uses a square bucket on a chair…
Plastic handle working on tall buildings not the smartest idea
Seriously made me think about “owning” your (solar) power although off topic. Actual power portion of utility bill approx $150 (total utility bill $250).
That’s $18,000 after 10 years let’s assume 3% increase annually just ball park $1800 So total cost of “renting” power. $19,800 every 10 years just an average let’s say. That’s $40 thousand after 20 years. With no depreciating asset and 0 debt. Now the solar companies come in…
They sell you $10,000 worth of panels and wires and boxes to replace no off grid batteries (that’s an extra $10,000 every 10 years). They realize you will get a $10,000 credit so they markup to $30,000. And they fluff $10k while telling you get a rebate oh goodie!
Then the install is $10k for 2days work with a decent crew. $40,000 so it would take 20 years to break even if that was the end. What about the, ROI??
After 20 years you pay $3,000 to the utility company just to stay on the grid so you’re negative so far. Then lol, hopefully the loan was interest free? Otherwise you’re even further in the hole. Well at least you have equity when you sell right? No it’s a depreciating asset no resale value darn. Well at least they maintained themselves right? No you spent another $250 (?) per year to clean them. Ok well at least after they are paid off I have free power for life?
Actually no, your solar panels are 20 years old. They are practically worthless and produce a fraction of their original output. Warranty is over and you’ll have to start all over if you want to own and produce your own power for the next 20years. Oh and you still pay $15-$20 per month to stay on the grid.
The silver lining, having me clean your solar panels regularly will maximize their output and performance and longevity!!
WOW, just WOW, the power portion of my last bill was $850 for 3 months…
Why if you have an off grid set up would you still want to be connected to the grid?
