Hello everyone. I apologize if this question has been asked but I couldn’t find a similar topic. Looking to purchase a compay with $1,00,000+ in annual revenue. Does anyone have experience with a purchase of a pressure washing business of this size? We are performing our due diligence and looking for a ballpark valuation. What multiple of net profit would be an average for a company of this size. Thank you in advance.
Are you wanting to purchase any company or a pressure washing company?
And where are you looking to buy?
1 Like
there are so many more questions to be asked…starting with these 2, lol
Well, typically the numbers tell you the whole story. I’m sure they have years of P&L’s, balance sheets, and bank statements that should tell you pretty much everything you need to know.
They do. Just trying to figure out what a common multiple would be in this business.
I think they vary pretty widely depending on whether you’re the buyer or the seller. What is a viable multiplier as an investor is often very different than what smeone who started/built a business thinks it is worth after all of their hard work.
Thank you. I understand so that’s why I am looking for examples of people who have purchased or sold and what that figure was for them.
I’m not sure if you mean $100,000 or $1,000,000. The difference might be important, but I’m no expert.
For any business though, valuation is about future expectations, which is based in large part on past performance. It feels like we would need more information in order to able to even get a ballpark number.
Let me fire the question back at you too. What do you think a reasonable multiple might be based on your experience? Maybe somebody can more easily tell you if you are in the right ballpark or way off one way or the other?
If your purchasing a million dollar company you need to contract an economist to look into their cash flow, assets and debt. From their they will give you a valuation on the company.
