PDA

View Full Version : Ballparking to find out what lawn Carecompany is worth


grandview (2006)
04-21-2008, 06:08 AM
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
04-21-2008, 07:18 AM
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
04-21-2008, 10:32 AM
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)
04-21-2008, 02:51 PM
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
04-21-2008, 09:27 PM
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
04-21-2008, 10:02 PM
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
04-21-2008, 10:06 PM
try this pagehttp://www.manta.com

grandview (2006)
04-21-2008, 10:50 PM
thanks about what i figured.

Tscape
04-22-2008, 07:18 PM
Start at 100% around here. Before the economy started going backwards it was 125-150%. Who knows, now maybe 75% is good.