Guys need help with decision - looking at buying an existing business. | TruckMount Forums #1 Carpet Cleaning Forums

Guys need help with decision - looking at buying an existing business.

Roy Rogers

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Nov 22, 2019
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Roy Rogers
Hi Guys I need help on a decision.

Am looking a purchasing an existing Carpet Cleaning business with about 100k in sales/yr. 1 employee, has been in the co over 5 years and has no plans on leaving, 2 vans one is a backup van, runs fine. Currently that 100 would give me personally 25-30k to manage it. My plan would be to increase the salary of the 1 employee and have him train a second person for part time work.

The business will have to be rebranded, it's been around for a while, 15 years or so, there is a strong customer base and the phone number will stay the same.

Each van has about 180k miles. I know this is not a "true" reflection due to the fact that these must have many more hours than that as the truck mounts operate from the van engines. They are both GM's one is an 07 and one is an 03.

One van has an Aquatec truck mount and the other a Hydra Master with the Hydra Master being newer.

The business includes hoses, tools, some supplies etc plus 1 raptor portable.

I've been in business for many years marketing, sales, advertising, semi retired but looking for something to do- extra money would not be a bad thing ;). Plan would be to buy the business, hire someone part time for the additional van and I would do the bookings sales, management... Will have to learn to clean carpets, of course, just in case. I do have a little understanding of carpets having owned a successful carpet installation company in a past lifetime.

They want about 50k US$ for the business. Is this too much? How long do the truck mounts last? It's all about 12-15 years old. The van's will probably have to be replaced in a few years?....

Any comments good or bad ;) greatly appreciated. Don't be shy please.

Thanks in advance
rr
 

Roy Rogers

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Nov 22, 2019
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I know difficult with no pictures but can't send any; non disclosure. Thanks anyway.
 

Anderson

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Aug 16, 2006
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direct drives...hhmmmm........
could be an issue with the van engines replacement with 180k.....miles......

need to know net profit...
could be 10k-30k$$??

might be a nice retirement job....
or a good tax write off....it will keep you busy

What is customer base???
% of homes
% of commercisl/motels, businesses.....
 

Roy Rogers

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Nov 22, 2019
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Thanks for the reply, net is about 20, 10 goes to a phone person/booking person part time. I would be taking that over. So I should be able to pay myself 30 as it sits and expand on the second van.

How long does the equipment last? It looks well used but not abused if that makes any sense. The vans are tired but feel they are good for a year or two.

You think the price is fair?
 

Anderson

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Aug 16, 2006
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havent heard of aquatec TM
but if those are both direct drives
add 25-30% to the mileage or 50k

you will need to change out both van engines within 20-30k miles.....at 5k$???? each

also you will need to find someone to work on those direct drive TMs in your area

My estimate on your equipment wo pics
is 5k for each van= 10k
and maybe 1/3 of sales net or 10k

offer them 20k...no more

as the day they close their business it is worth next to nothing.....
I bought a customer base for 1000$ as he was closing down his business...

is this all homes?????
or commercial????
 

Roy Rogers

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Nov 22, 2019
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hey Anderson thanks again. Wow that's low, I was thinking 30-40k BUT that's why I posted.

They are valuing the equipment at 20 and customer list at 30 which I thought was extremely high. It has about 3000 names but only about 1000 what I would call current - 2 years or so. As per commercial just few long term, I would say about 15% commercial and 85% residential. With the dollars being about 22% commercial and the remainder residential.

Ok I will start calling monday to see who can fix direct drive systems. The vans aren't bad but thats a lot of miles imo, tranny's and engines are not cheap. If one fails am easily looking at 10k.
 

Anderson

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Aug 16, 2006
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Wo the tm installed in a van
a used direct drive TM are worth nothing = 0$
unless you have someone to install it.

I see scrap direct drive Tm all the time on the inernet for sale at distributerships......

As it costs at least 10k minimum to unistall and install a direct drive into a new van if you can even find someone to do it.

Many direct drive TM are only installed at the manufacturer-they are a royal pain to install.

I dont know anyone in Texas that can install a direct drive...however it may be possible at interlink????

Either way expect to pay 10k and purchase a new van.....by that time you could just purchase a new Tm.
 

Roy Rogers

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Nov 22, 2019
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ok so if I get you right the equipment is married to the van, too expensive to to move it to a different van, so total van replacement is a no go, have to live with the vans and replace engines when the time comes or do total upgrade.

do these units last? 07 makes them 12 years old.
 

Anderson

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Aug 16, 2006
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I like chevys and then ford....

You gotta do the math:
those vans have 230k miles on the engine but I believe the transmission is disengaged with the TM running....so the trany has 180k

All my vans and cars have to replace engine and transmission around 200k.
 

Roy Rogers

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Nov 22, 2019
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Yes from what I saw you are right vehicle is in park while the truck mount is running, engine revs slightly higher.

How about the actual truck mounts though? the bearing etc. do these things last? I gotta go for the night I will be here tomorrow though. Anderson thanks for the help and comments.
 

Anderson

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Aug 16, 2006
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i have personally never owned a direct drive...

i did see a few direct drives - hydramaster and butler at the trade show in las vegas....

from what i understand most parts are easy to replace but the shaft can be a major problem if it breaks or has problems........

may not have anyone within 500 miles that can fix it......could be major$$$$$$

but you really need to talk to someone who has owned a direct drive.....