I'm asking for advice on behalf of my step-sister. For the last 20+
years she has run her own small business in the green energy/
construction sector. (PV, solar thermal, heat pumps, underfloor heating
etc). She fell into doing this almost by accident: a former boyfriend
imported PV systems and she recruited and trained teams to fit the kit.
For the first decade she worked 24/7 and made serious money in the PV
boom. Then she scaled back in order to take care of family commitments
and after a health scare last year she wants to retire later this year
at 58 and enjoy life. She hoped that her son would be interested in
joining the business and would have been prepared to work with him for a
year or two to get him going, but he has other plans. There are
currently no employees — all the work is done through trusted
sub-contractors. She assumed she'd just finish all the outstanding
contracts and wind up. There is no office, no fleet of vehicles — just
the content of her head, her contacts list and trading record, a good
company name, a decent reputation and her MCS and other accreditations.
She's turning down potential clients each week. She hasn't advertised
for some years. Clients come via the architects, surveyors and planners
she's worked with over the years, and through word of mouth.
Recently one of her former clients heard she was winding down and
suggested she should sell the business. She didn't think it was worth
pursuing, but she made a couple of calls and was surprised at the
valuations she received, in the region of £150-250k. However, she was
very aware that she was talking to salespeople and having met many
sharks in her own sector, she is wary both of the valuations and the
requests for payment in advance. Both the people she's been in
discussion with are looking for money upfront to sell the business —
£2-4k — and then take a 5% cut.
Any advice on how to value the business and how to sell it (if it's
worth selling) would be gratefully received. Is it normal in these
circumstances to pay a fee upfront?
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Selling a business | Forum
Patty Long
Jul 12
The only value in the business at size is what someone is prepared to pay. and in the current market unlike to sell for anything - maybe a competitor might take it for the customer database.
Sonia Ellison
Jul 12
It sounds like your step-sister has built a solid business over the years in green energy and construction. Valuing a business like hers can be tricky but important for a fair sale. Since it's mainly her expertise and reputation driving business, focusing on her client base and ongoing contracts is key. Considering the offers she's received, it's wise to be cautious about upfront fees—often, reputable brokers or advisors take a commission after the sale. Exploring resources on how to sell your business might offer insights into fair valuations and negotiation strategies.
MatthewMorgan
Aug 6
Selling a business can be a complex process, especially when it comes to addressing potential buyer concerns. One critical aspect to consider is the history of hotel complaints. Buyers will want to know how you’ve handled issues like noise disturbances, cleanliness, or customer service. Being transparent about past complaints and demonstrating how you’ve improved operations can build trust. Additionally, showcasing a solid reputation through positive reviews can make your business more appealing. By proactively addressing hotel complaints and highlighting improvements, you can present a more attractive proposition to prospective buyers, increasing the chances of a successful sale.
