# Selling a Wall Paper Business



## saraandmichael (Jun 30, 2021)

If the business made 300k last year with two full time paper hangers with one retiring after 30 years and selling the business to the newer guy whose is excellent and on the job for 2 years learning the trade from the best, the business has 30 designers most regularly referring clients.
How would know what to sell your business for?
Is it worth it without the original business owner?
There is no contract no ties.

The customers have met and many like the new guy but he is newer. I worry that the customers won't have the loyalty long term. So maybe a percentage of the profits?

Any feedback would be appreciated.


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## stelzerpaintinginc. (May 9, 2012)

Without binding contracts, it will be challenging to put a value to your company, especially considering the owner, (you), is leaving, and I'm assuming you were in charge of sales & acquisition, marketing, and customer relations. Unless it's a slow transition over several years, whereby you begin to relinquish more and more responsibilities, and the new owner/employee is assuming those responsibilities, I'm not sure I'd expect any of your customers to show loyalty after you're gone. 

There's 3 basic forms of valuation in determining what a company is worth:
-Asset Based
-Income Based
-Market Based

Having favorable income statements from last several years might help, as would having a reputable website that's highly trafficked, but ascertaining a value on all of the intangibles will be challenging, given the fact that you are the common denominator in most of those intangibles. It'd be different if your company was systematized and could run without your presence, but that's just not the case here. What's left are your assets...Everything you intend on passing on to the new owner, (tools & equipment, vehicles, real property, etc). 

You may very well find the valuation for your company without your presence to be a small fraction of what it would be if you were there. That's about all I know on the matter, but there are companies who do nothing but valuations for small businesses. If all else fails, seek their advice. Good luck.


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## Woodco (Nov 19, 2016)

Are there contractors licenses involved? That would be the biggest thing outside of tools and work vehicles, if you ask me. I dont know what kind of value, if any, is in a client list. The company name alone might be worth something... A website domain if its been around long enough to have high rankings on google.


As far as the three valuations, I dont see income based value being particularly valid for this type of business, since all income is through service labor only. The installer will make as much money as he/she works for, regardless of the company. It'd be different if there were a 15 person work crew generating income, that would transfer through a ownership change, but for a one/two man operation, the only value is the work they put in.


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## Ken Odell (Mar 29, 2013)

I am in the beginning process of selling our business. To answer your question, as a starting off point my accountant (who specializes in helping businesses owners exit) advises 40-45% gross revenue. I would recommend getting the advice of people who have been through this process before.


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## finishesbykevyn (Apr 14, 2010)

Tell him to make you an offer you can't refuse. 20K. I'm more insulted that after 30 years, this is the first time you've logged into Paint Talk?!


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## joelynnpamplin (10 mo ago)

Why do you care about how some guy will manage the business you sold? After the sale, all the shares will go to him, becoming his rightful owner. Therefore, you will no longer be able to influence his actions. If I were you, I'd sell the business to this guy and stop thinking about him at all. Why waste your nerves? I bought an online building materials store a long time ago, which brings me a good income. Of course, we've been going through some tough times recently. We had to turn to consultants from https://www.antonybatty.com not to go bankrupt. Now everything has started to get better.


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## Woodco (Nov 19, 2016)

joelynnpamplin said:


> Why do you care about how some guy will manage the business you sold?


integrity?


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