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View Full Version : Does a company that only landscapes have any real value?


drsogr
05-01-2006, 10:09 PM
I was curious if I was to sell my business...would it have any real value? I only do landscaping..so I have no regular customers. I am selling an image...and some paperwork?!

The business isn't for sale..I was just curious if I ever sold it.

gorknoids
05-01-2006, 10:23 PM
You can't put a price on things like taste, work ethic, imagination and interest. You can sell the drafting table and the rest of the stuff at market value and you can take a teaching position, but damned if you can sell your personality when you're done using it. Maybe that whole Zen thing has some merit after all.

olderthandirt
05-01-2006, 11:24 PM
Yes it has value, Its a name and if you worked hard its a good name with good employees. They have the experience that you taught and the quality workmanship should never miss a beat. Look at it this way, can your foremen & employees run the company with out you being there and make money? If yes then the company has value and the longer its been around the more value it has providing it has done quality work with satified customers.

If your solo, then no. Only the value of the equipment

JJLandscapes
05-02-2006, 08:33 PM
Remember if you find some one stupid enough to buy... what happens if they ruin your name and do terrible work can you live with that?

someone i know sold a maintenance and install route to some guy... he did terrible work and the guy bought his company back somehow because he was ruining the companys image that he created by losing most of the customers but he got them all back probably calling them all up personally and explaining what happened

drsogr
05-02-2006, 09:48 PM
Well if you sold the company....why would it matter what happens to the image? You don't own the image anymore?

AL Inc
05-03-2006, 06:17 PM
Like Mac said, if it was more of a "turn-key" operation that someone could step into and keep running, I would say it definitely would have a value beyond just the trucks and equipment.

MarcusLndscp
05-03-2006, 07:29 PM
There's not much value in a landscape construction business other than your equipment. The real value is in a company with large maintenance contracts. You may have 6 months of construction to do but that has little value compared to a company with multiple 3 year maintenace contracts under them. That's what adds value to a business you're selling, not 3 weeks of plantings at Mrs. Jones house

olderthandirt
05-03-2006, 08:50 PM
There's not much value in a landscape construction business other than your equipment. The real value is in a company with large maintenance contracts. You may have 6 months of construction to do but that has little value compared to a company with multiple 3 year maintenace contracts under them. That's what adds value to a business you're selling, not 3 weeks of plantings at Mrs. Jones house

TG/CL- fert apps are 1 yr or less contracts, does that company hold no value?

allinearth
05-04-2006, 07:44 AM
Does that mean a retail merchandise store holds no value because customers have no contracts? Many of my install customers call year after year with new projects or improvements or they buy new houses etc.

MarcusLndscp
05-04-2006, 07:42 PM
Do your customers sign a contract with you guaranteeing that they will do an improvement on their property each year and have you do it??? I doubt it. I'm not saying a landscape company has no value but doesn't a company with 3 year contracts on paper sound a little more financially stable than saying "well we always book x amount of months of work in construction every year. We're not sure who we're working for next year but we always have steady work." The maintenance is your guaranteed work for x number of years and you know you'll collect x amount of dollars every year from them no ifs, ands, ors, or buts about it. Maintenance is also work you know will always be in demand but construction is something that changes quite a bit with the market. Some years are better than others for the people in this country and in the down years I can almost guarantee you one of the first things cut from someones budget is that new walkway or planting they want. I know guys who have sold construction businesses before and they have some value but not as much....believe me.

Also some people may have only one year contracts but we always operate with 3 year contracts on everything from plowing, mulching, fertilizing, liming, edging, mowing, pruning, etc etc....everything included in property management.

MarcusLndscp
05-04-2006, 07:43 PM
Mac
What's TG/CL?????
Sorry for my ignorance

olderthandirt
05-04-2006, 09:11 PM
Mac
What's TG/CL?????
Sorry for my ignorance

Marcus, certainly you heard of True Green/Chemlawn :)
I agree that maintenance is the steady money maker and proves consistent through out the yr. But an install will generate a lot more money for time spent. 1 month of installations can = 9 months of maintenance. The more established the business the more sure it is to have work, maybe not the home owner but the state or feds are always working even in slow times. And its the established companies with a track record that can secure a bid/bond for those projects.

MarcusLndscp
05-05-2006, 08:07 PM
I agree Mac.....there is alot of money in construction. That's what I personally deal with all year, jobs up to a million a piece...no maintenance for me :). Yes, an established landscape construction company that has been around for an extended period of time that has a good rep obviously has more value than a younger company, it's just been my experience that the maintenance end of the landscape world adds more VALUE to SELLING a company.... not that it necessarily makes more money for a company. I think we're both slightly off topic from eachother and do actually agree on the facts we're stating. I'm certainly not disagreeing with your comments

Take care and hope the season has been going well for you!

allinearth
05-06-2006, 09:24 AM
True....our sales change every year. They go up.:rolleyes:

JJLandscapes
05-06-2006, 09:46 AM
Well if you sold the company....why would it matter what happens to the image? You don't own the image anymore?

If you where bill gates and sold microsoft to a group of asians who ran the company to bankruptcy im sure you would care

id be dammed if i spent 30 years establishing a landscaping business or any business to have some jerkoff run it to the ground.....seeing old customers who will always be like ooo every since you left the company hasnt been the same

hopefully my kids wanna a landscape lol