Hi, My name is Michael. A. I am new here. I am seroiusly considering pruchasing a window cleaning business here in Toronto, Canada and my research led me to this forum. I find this to be a wonderful resource for a guy like me just trying to get his feet wet. Thank you.
Welcome Michael. I hope that works out for ya.
Great name, man. Represent it well.
Hey Michael, welcome to WCR. You’re right, this is a great place for window cleaning information. Use the search bar and soak it all up.
Here are the terms of my pending purchase:
33% for $270,000 or 33 cents on a dollar
Equipment for 4 teams
Training for 2 weeks.
Total price: $89000
I would appreciate feedback on these terms, please. Are there particular areas missing in this arrangement. The $270.000 is based on last year’s revenue. I understand from the seller That I would loose 25% of last year’s revenues this year based on industry standard. I would have to market my services to maintain last year’s revenue figure. That is if I don’t do any marketing my revenues for this year would be around $202500 ($270,000- $67,500 or 25% of $270,000).
So is this turn key style buy/sell? I think, if he was smart, he would make a big part of that sell as a business consultant. It would save him on taxes and give you a chance to still contact him with questions which are sure to come up after two weeks.
Do employees come with?
No employees. Just independent contractors on commission. The sale is structured such that the seller is a business consultant. The consulting/training period is limited to two weeks. I would be reponsible for the taxes- 13% HST. Would you consider the this a fair price -$89,100 + 13% taxes =$100,683?
I could not with a good conscience give you a Yes or No to that question. That is definitively yours to answer
I am curios why the owner uses IC to do the work. In the States that’s usually only done when people are trying to avoid the taxes and workers comp that is required with employees.
Seems like a pretty good amount of yearly gross income though, I would certainly consider it if I were looking to buy. I know others who have bought businesses similar and some ended up paying more than fair some didn’t. But you might check out some of the threads on here that mention what a window cleaning business is worth to get some more views. It seems like 30% of yearly gross was pretty common if I remember right. I will also say this, window cleaning done right can bring very nice financial rewards.