selling

I'm guessing they want $2million to $4million for it.

I'd pay a million, MAYBE 2 million. I would not go over 2 million for it.

If what they are saying is true, this is a fucking killer business. great margins and cash flow, low risk, and mostly recession proof.

I say if you can get it for a million, then go for it. Maybe ask them to allow a forensic accountant to review all their books prior to buying the company.

they actually want to sell for around 850k-1mill and yes there margins are 42%

>>1589174

Dude buy it. Unless here are some hidden risks or scams they are playing on you then this is a killer deal.

They are actually fucking dumb for selling at this price.

I have a business that earns about $50k a year and I would not sell it for a dollar less than $150k.

You'll earn your entire investment back in like 3 or 4 years. And maybe less if you grow the business.

If you really wanna be hardcore, just pay a buddy to go work for them for a few weeks and do a little detective work for you, find out if everything is legit.

well they sent all there paperwork over for the past 5 years to my accountant and it all checked out when he looked at it, i have been taken to some of the sights where they clean and showed all the contracts

the only thing thats throwing us off is that literally everything they own is in the business name there cars there camper there motorcycle and hell they ever shop with the business card when they buy food so the paperwork is a little off because of that

>>1589221

well that's for the tax deductions. And if that's true than the business is likely even more profitable than you posted in your OP (because they turned personal expenses into business ones).

But one huge question: Why the fuck would anyone sell a business that is basically printing money? If I had a business that was making me $250k a year without too much effort (a cleaning business is fucking dirt simple) why would I cash out for a million and then have no cash flow?

Hmmmmmmm

>>1589221

Another thing to consider, if they were buying very clearly personal stuff as a business expense, then they were committing outright tax fraud.

And if they were willing to commit tax fraud it makes trusting them suspect to me.

If this deal is legit it's absolutely killer. If I were near you and aware of this deal I would steal it in a heartbeat.

But you know what they say about something being too good to be true...

>>1589282

*** Tax reduction

Jesus, a simple Google of "ebitda multiple janitorial services" would have given you better advice than you've gotten so far in this thread.

https://www.valuadder.com/blog/2010/02/17/business-valuation-janitorial-services/

Of course, you don't even have a good EBITDA number because the played with the books, something that your account should have corrected for you.

But what really puzzles me is that you claim to have an accountant, but haven't asked for his assistance on valuation? You do know a good accountant can do more than file your taxes, right?

I just don't understand the minds of people here. They'd rather ask some NEETs for serious financial advice than the licensed professions they readily have available to them....