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jtlandscaping
03-19-2009, 05:27 AM
I will possibly be selling my business sometime during this season due to a change in career. I am wondering what I need to do to prepare for selling? Would my customers need to be on some type of contract? As of last year I only had a verbal agreement's with the customers.

I used the search function and didnt come up with much sorry in advance if this question is asked all the time.

Proc's Lawncare
03-19-2009, 12:35 PM
Well having a signed contract in hand to offer a potential buyer sure looks better to the new guy buying it then saying we have a "verbal agreement" if you can easily transfer them to a contract, then I would do it. Makes each account worth something, without the contract your not really selling the account...know what I mean?

Also, combine sale of equipment and contracts always gets more money in your hand. People would rather spend a little more and get the "whole deal" then just accounts. Hope this helps and good luck on the new career path!

jtlandscaping
03-24-2009, 03:15 AM
What would I need the contract to say? I believe that it would'nt be that hard to put my customers on a contract. Sorry for not posting back right away I think lawnsite was down when I was trying to reply..

wbw
03-24-2009, 11:28 AM
Tell us a little more about your business. How many customers, how much revenue, how many employees etc.

jkranium
03-24-2009, 02:09 PM
Jt...what type of business are you running I might be interested...or know some interested parties.

jtlandscaping
03-24-2009, 05:45 PM
Well its a pretty small business but I would like to grow a more this year. I would assume I would be selling it mid summer if I get into the hvac apprenticeship program that I applied for. Currently I have 6 full service residential accounts, all of them being decent sized yards for around here most are between 1/2 acre - 1 acre. I would like to have atleast 10 accounts by the end of spring if not more. Its a solo operation, and usually I put in about 20-25 hours a week during spring and fall, and a little less at slow points of the year.

My services include
clean ups
Mowing
Hedge trimming
Mulch
Weeding
Fertilizer
Light tree trimming
Building flower beds + planting
Light brick work as well

jkranium
03-24-2009, 09:25 PM
Jt, first thing what revenue level are you looking at, as top line will certainly be a part of what someone will offer you. What most prices are based on is a multiple of the EBITDA. Sounds like you are pretty small so I wouldn't expect too much.

capnsac
03-25-2009, 02:41 PM
Well its a pretty small business but I would like to grow a more this year. I would assume I would be selling it mid summer if I get into the hvac apprenticeship program that I applied for. Currently I have 6 full service residential accounts, all of them being decent sized yards for around here most are between 1/2 acre - 1 acre. I would like to have atleast 10 accounts by the end of spring if not more. Its a solo operation, and usually I put in about 20-25 hours a week during spring and fall, and a little less at slow points of the year.

My services include
clean ups
Mowing
Hedge trimming
Mulch
Weeding
Fertilizer
Light tree trimming
Building flower beds + planting
Light brick work as well

What do you pull in yearly with this?

wz2p7j
03-30-2009, 08:17 PM
JT - I also run a business brokerage in addition to my landscape company and have experience buying and selling companies. If there's a way to do a personal message on this board send me one and we can talk if you wish. Chris