View Full Version : Selling......need ballpark figure
07-31-2001, 05:53 PM
Selling my half to partner.
My partner and I have had our company for 5 years now. I have just been offered to buy a business (not landscape related) that I am pretty sure I am going to buy. My partner has agreed to buy my half but we have not come up with a number yet. Tell me what you guys think is fair.
90 accounts that gross $70,000 a year.
8 X 18 Haulmark enclosed trailer
6 X 12 open trailer
1999 62 inch Toro Z-Master (great condition) w/vac setup
1998 36 inch Bunton Bullet W/B (good condition)
1985 60 inch Dixie Chopper (piece of crap but cuts nice worth about $1500)
2000 36 inch Ryan Aerator
2 new T-230 shindaiwa whips
2 new EB7000 Red Max blowers
2000 Tinaka Edger (not a stick edger)
2000 Echo Power Rainger Tree trimmer
97 Echo Hedger (not that great of one)
And all the other little stuff that comes with this kind of business(wheel barrels, grinders, shovels, rakes, etc.)
I also did all of the leg work, ya know,paper work, advertising, bidding etc.
I appreciate any help!
07-31-2001, 09:50 PM
I'm kind of wondering myself.
I think I heard 33% of the business' net profit for one year. I don't think that includes equipment though, just client list.
I'm anxious to hear what others say.
07-31-2001, 10:06 PM
what is your half worth
now thats you problem you are only going to be able to sell 1/2
I bought a biz for $8,000 including equpiment, and 42 accounts
sold the mowers for what I bought the biz for and kept the rest
there are going to be 3X's the variables in this to give you any kind of a ball park answer
What did you buy together or seprate
how much do you own (EG. 50% - 49%)
how much do you owe together or seprate
how much do you each net a year
to much to get in to
good luck EROSS17 LGF:blob1:
08-01-2001, 01:00 PM
Thanks for the replies guys, but I'm looking for some one that might be in a partnership and can relate. We are 50/50. Like I said, just a ballpark estimate. Thanks again
08-01-2001, 02:11 PM
Is the business woth 1/2 as much with one person gone? Or would your leaving not be such a blow? Or would the business now be worthless with one person running the show?
Things to think about.
08-01-2001, 03:18 PM
My leaving would mean his income would double next season. I always kind of thought that he would get out of the business and that would have been a very profitable situation for me, but vice versa. He'll make great money doing it solo.
08-01-2001, 04:18 PM
We are 50/50.
50% of the resale value of equipment minus 50% of any business debt.
Is $70,000 total gross sales for the year?
That means your 50% is worth $35,000. The going rate (on this forum) seems to be 10% of gross receipts = $3,500
My leaving would mean his income would double next season.
He wouldn't need any help?
Did you guys discuss this possibility when you started up?
08-01-2001, 04:58 PM
$70,000 is gross sales. He could take over and do it by himself. We have a good route. We didn't talk about this stuff when we started.
08-01-2001, 05:00 PM
"My leaving would mean his income would double next season."
Or he may get your half from you cheap and then turn around and sell out the whole biz for next year. I would imagine he is a good person and is not set on screwing you over, BUT... he may start to get a little overwhelmed at the thought of doing ALL of the work by himself. Should an opportunity to sell for a handy profit come up he may take it. My point in this rambling....Make sure you are happy with the buyout, and then realize you are gone and what he does with it is his business.
08-01-2001, 05:21 PM
Anythings possible! Neither of us are out to screw one another. To be honest I could do my new business oppurtunity and continue with our business. But I would rather get out. So I want to get a nice chunk of change for it.
08-01-2001, 06:05 PM
Am I stupid? Is it too simple or does this work: How much the business could sell for divided by 2. ????. Looks like you have a good deal of equipment, what about trucks? Do you each use your own personal trucks? Figure out a price for equipment, divide by 2, add 3500 for the accounts and presto, instant answer. Am i wrong?
08-01-2001, 09:37 PM
you always thought maybe one day you would buy him out, so .. what about the shotgun situation. I believe it works in such a way that you come up with a figure that you would be willing to buy him out for and he has the choice to either exit or pay you the same amount you would have paid him. It sounds fair to me and if it really is profitable,you may not even want the other business venture. good luck.
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