How can I SELL an established mobile car detailing business?

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Jul 30th, 2021 11:25 am

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Jul 11th, 2021 3:24 am

chinaboy1021 [OP]: Deal Addict; Jun 12, 2003; 2957 posts; 114 upvotes; Markham

Jul 11th, 2021 3:24 am

How can I SELL an established mobile car detailing business?

Hi all!

I'd like to sell my mobile car detailing business. It's 5 years old and well-established in the GTA.

I'm not sure how I can go about selling it. Is it appropriate to post it for sale publically (ie. FB Groups, Kijiji, RFD)?

I can also contact competitors however there's the risk of them acting interested just to spy on my revenue/operations. I thought that if I post it pubically and the prospective buyer is not a competitor, at least I won't lose any secret sauce if the deal doesn't close.

10 replies

Jul 11th, 2021 10:32 am

imoo2u: Deal Addict; Dec 20, 2006; 2193 posts; 2116 upvotes

Jul 11th, 2021 10:32 am

chinaboy1021 wrote: ↑ I can also contact competitors however there's the risk of them acting interested just to spy on my revenue/operations. I thought that if I post it pubically and the prospective buyer is not a competitor, at least I won't lose any secret sauce if the deal doesn't close.

Make a non-disclosure agreement and signed between parties involved for you don't want any potential buyer to take your business model/idea even if the deal doesn't close

“Ninety percent of all human wisdom is the ability to mind your own business.”
— Robert A. Heinlein

Jul 11th, 2021 10:43 am

Just Confused: Deal Addict; Aug 28, 2007; 2119 posts; 496 upvotes; Calgary

Jul 11th, 2021 10:43 am

Go read the free documentation on business broker websites for basic education. Use Google to get free (or cheap online lawyers) templates of any documents you will need (like the NDA, Letters of Intent, or Purchase & Sale agreements)

Try out BusinessesForSale.com for a free listing

Business brokers will charge you 10% to do it all for you.

Jul 11th, 2021 12:51 pm

gr8dlr: Deal Expert; Sep 1, 2005; 19427 posts; 14399 upvotes; Markham

Jul 11th, 2021 12:51 pm

It's hard to sell a business like this b.c. YOU are the business. The stuff you use is just stuff and that is what you're probably selling (pennies on the dollar) which someone might buy because your customers hire YOU and not your stuff.

Best place to sell it is probably family/friends...but you'll have to hand hold em while they learn the ropes.

We're all bozos on the bus until we find a way to express ourselves...

Failure is always an option...just not the preferred one!

+1

Jul 13th, 2021 11:00 am

tony311: Sr. Member; May 29, 2012; 612 posts; 249 upvotes; Southern Ontario

Jul 13th, 2021 11:00 am

I might suggest something different.
I agree YOU are the business and the rest is materials.
what you might be able to sell is your list of clients to a competitor, they could be willing to pay for that and hopefully take over your clients

Jul 13th, 2021 1:25 pm

Pronoia: Member; Apr 2, 2020; 205 posts; 89 upvotes

Jul 13th, 2021 1:25 pm

Ignore all the "naysayers" who claim that you won't be able to sell your business because "you are the business". Most of them probably have never sold a business before.

I was told the same thing.

I went with a business broker who was very helpful. They charged a percentage but it was totally worth it. I had several interested buyers and the broker was able to deal with the "nosey" competitors.

Good luck!

+1

Jul 13th, 2021 7:49 pm

buysellbuy: Sr. Member; Dec 3, 2019; 561 posts; 525 upvotes; Ontario

Jul 13th, 2021 7:49 pm

My advice would be to try to value the business on your own first.

You will likely have 2 kinds of buyers:

1st type.: Someone who wants to create a job for themselves.
This kind of buyer would be looking more at your Sales minus Expenses(excluding your wages).
If above = 10,000 you can multiply by something like 2x and ask for 20,000.
The buyer would need to work for 2 years just to pay for the business in this case.

2nd type.: Another company like a competitor.
They would really care about Net Profit after all expenses, salaries and taxes.
If profit is 1,000 you can use a higher multiple like 10x and ask for 10,000.

I do not think that divulging your accounting will really give a competitor an advantage. I personally would advertise it in as many places as I could. (unless you have employees who would lose their jobs)

Jul 14th, 2021 11:22 am

peteryorkuca: Deal Fanatic; Jul 26, 2007; 6913 posts; 4499 upvotes; Toronto

Jul 14th, 2021 11:22 am

Agreed on spies from competitors being negligent. All they are looking for is how well they are doing compared to your business. You are not giving them your customer list, you need to take a risk(?) when selling a business.

How do you know if they want to snatch up your place when they see how awesome you are doing?

Jul 15th, 2021 12:13 am

slavka012: Deal Addict; Dec 13, 2007; 2028 posts; 543 upvotes; Toronto

Jul 15th, 2021 12:13 am

imoo2u wrote: ↑ Make a non-disclosure agreement and signed between parties involved for you don't want any potential buyer to take your business model/idea even if the deal doesn't close

Don't waste time on NDA. There is close to zero knowledge related to car detailing business that is already not in public domain. Enforcing such NDA will be next to impossible anyway.

+2

Jul 15th, 2021 9:26 am

BoatyMcBoatface: Member; Jul 31, 2017; 422 posts; 509 upvotes; Toronto

Jul 15th, 2021 9:26 am

The answer really depends on how big your business is. If you have a fleet of vehicles kitted out and servicing hundreds of people a week, there's definitely value in the company and a business broker can help you out. If it is just you, and assuming you don't have some ultra secret proprietary magic cleaning solution, there isn't really a barrier to entry other than the cost of supplies and a truck. Your customer list is all the value you have. And even that is debatable because unless the new owner has the same traits that your customers like, why would someone be loyal to a complete stranger.

+1

Jul 30th, 2021 11:25 am

Ecsta: Deal Addict; Jan 17, 2009; 4248 posts; 4567 upvotes; Toronto, Ontario

Jul 30th, 2021 11:25 am

IMO the most (only) valuable part of your business for sale is the list of your recurring clients. A competitor would probably be the only people interested, since they know what your clients are worth. If you're big at all they'll be happy to have one less competing business (if you're a thorn in their side). If you're not big they'll probably won't be interested.

slavka012 wrote: ↑ Don't waste time on NDA. There is close to zero knowledge related to car detailing business that is already not in public domain. Enforcing such NDA will be next to impossible anyway.

People suggesting NDA's usually have no idea what they're talking about, or have never tried to actually enforce one in Canada.

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