Ballparking to find out what lawn Carecompany is worth

[grandview (2006)]

I may have an an opportunely to buy out the lawn care portion of the company I used to work for.The only equipment is a truck,last I heard there was about 700 accounts. I know different parts of the country have different pricing ,just trying to get a feel for what one account is worth.Company has been in business 25 yrs.

[RigglePLC]

Well-depends--rule of thumb is about 75 percent of annual sales.

Or---about 4 times annual profit.

I either case, add in the value of equipment separately.

How are you going to finance the purchase? Can you pay 2000 a month for 4 years?

[garydale]

The 75% rule is about right.
Be sure non- compete is addressed, retention percentage is set and cancelations.
Get agreement on the seller helping with the transition. ie: letters of introduction etc.

[grandview (2006)]

Well-depends--rule of thumb is about 75 percent of annual sales.

Or---about 4 times annual profit.

I either case, add in the value of equipment separately.

How are you going to finance the purchase? Can you pay 2000 a month for 4 years?

Your just talking about 1 yr of profit correct ? Spread out over 4 yrs.

[humble1]

I may have an an opportunely to buy out the lawn care portion of the company I used to work for.The only equipment is a truck,last I heard there was about 700 accounts. I know different parts of the country have different pricing ,just trying to get a feel for what one account is worth.Company has been in business 25 yrs.

80-100% around here, depends on how good they are.

[americanlawn]

We we offered well over 90% of annual income years ago. No trucks, equipment, real estate.......just customer base. It all depends on how well the purchase benefits you in the long run.

[greenbaylawns]

try this pagehttp://www.manta.com

[grandview (2006)]

thanks about what i figured.

[Tscape]

Start at 100% around here. Before the economy started going backwards it was 125-150%. Who knows, now maybe 75% is good.