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lawn
06-14-2009, 05:47 PM
I am thinking about retiring and selling my business, I have no idea how to start, does anybody knows about any reputable appraisal company that can give me an idea on how much to sell it for?

Any ideas will be very much appreciated. Thanks

lawn
06-15-2009, 05:57 PM
Nobody has any advice on how to sell a Landscaping company?:confused::confused::confused::confused::confused:

supercuts
06-15-2009, 06:11 PM
if youve been doing this long enough to retire id think you'd have a handle on guessing its worth, dont know who to tell you to contact. stick your story on here and im sure some of us can give your our thoughts on its worth. include equipment, trucks, # of accounts, avg prices, yearly gross figures, etc

tradeyouraccounts
06-15-2009, 09:14 PM
In many service industries the purchase price of the accounts is a multiple of the monthly gross service income. The multiple can be any where from 1 to 12x the monthly gross service income. Both parties negotiate and agree on the multiple used. The you’d need to figure out if there is any equipment, tools, and vehicles to be included.
Check out http://www.tradeyouraccounts.com for Buyers sellers and traders of service route accounts.

snomaha
06-17-2009, 11:53 AM
Start with your accountant and ask for a referral on someone who specializes in business valuation.

lawn
06-21-2009, 02:12 PM
Start with your accountant and ask for a referral on someone who specializes in business valuation.

Thanks I am also adding up how much i paid for the trucks, equipment, etc that will give me an idea of how much to ask for.

gene gls
06-21-2009, 10:43 PM
Thanks I am also adding up how much i paid for the trucks, equipment, etc that will give me an idea of how much to ask for.

Its very discouraging trying to sell a landscape business. Every one wants everything for nothing. I had my business for sale for about 4 years. I ended up downsizing. Gave my buddy 15 accounts and sold my best 25 customers for 1 mowing. I just downsized again and gave another friend 12 accounts. I sold off the excess equipment for next to nothing the first goround just to get it out of the way.

lawn
06-23-2009, 03:52 PM
Its very discouraging trying to sell a landscape business. Every one wants everything for nothing. I had my business for sale for about 4 years. I ended up downsizing. Gave my buddy 15 accounts and sold my best 25 customers for 1 mowing. I just downsized again and gave another friend 12 accounts. I sold off the excess equipment for next to nothing the first goround just to get it out of the way.

there must be a website or another way to sell the business. I just don't know where is the best place to post an add. I tried CL got lots of responses but nobody has the $ to buy it.

wbw
06-23-2009, 04:39 PM
How long have you been in business?
How many accounts do you have?
How long have you had your average account?
What are your average annual revenues?
Tell us about your equipment.
What is your role in the business (is it management or owner dependant)?
How much do you make (total benefit to owner)?

Tell us what your working with and you might get some good advice.

fl-landscapes
06-23-2009, 05:07 PM
www.bizbuysell.com

Look around the site it's interesting. My buddy sold his business in Rockland, MA "United Landscaping" He did very well. They were billing about 2 mill at the time he sold. Most real valuations are based on "owner benefit" and I believe it is 1.5 to 3.5 owner anual benefit.

lawn
07-01-2009, 12:39 AM
www.bizbuysell.com

Look around the site it's interesting. My buddy sold his business in Rockland, MA "United Landscaping" He did very well. They were billing about 2 mill at the time he sold. Most real valuations are based on "owner benefit" and I believe it is 1.5 to 3.5 owner anual benefit.

Thank you I'll check it out

IMAGE
07-01-2009, 12:55 AM
Back in high school (about 10 yrs ago), I did an interview with a banker on "buying a business", and wrote a report on it. He told me that most lenders will value a business at no more then 4 years net profit. So a business that profits $25k/yr would have a loan value of $100k according to that banker. But that is 10 yr old info, and may not apply in todays economy.

Bunton Guy
07-01-2009, 03:14 PM
I've bought 4 companies out. Its been over 8 years since the first was purchased and due to moving,deaths,economy, lowballers & simple dissagreements I've lost 98% of those. So plan on shooting a lower price for some accounts...with the transition of the companies I bought there was always a hand full that didn't want to re-sign with us that were pissed the prior landscaper was selling.


For the first 3 we paid one months gross on all the accounts with contracts & one weeks gross on all "monthly non contract" Worked out great...the way we did it was we mowed all accounts for a month with no income. The next month they became ours! quick transition and instant growth.

The last one was a series of 5 commercial accounts that paid in the range of 75,000 a year total. We paid $7,500 for that company. Plus we paid 4000 for two super surfer mowers that he had for sale and another couple grand for his isuzu spray truck. He let us make 5 monthly payments....worked well.

ashelton
07-02-2009, 08:25 PM
Typical for a service business is 1.5 x gross, or 2.5 x net, that is yearly. This will be very difficult for a LCO. I recently sold mine for 6x monthly gross, plus equip.

lawn
07-02-2009, 10:22 PM
Typical for a service business is 1.5 x gross, or 2.5 x net, that is yearly. This will be very difficult for a LCO. I recently sold mine for 6x monthly gross, plus equip.

Did you sell it with a broker or did you put an add?

Bunton Guy
07-02-2009, 11:11 PM
Its hard to buy a company without loosing some clients. Not all clients want to transition to someone new. I've never been 100% comfortable with the 4 other companies i've bought. I knew I was paying for all the clients...nowing that within a couple months I would loose a few that I've paid for.

ashelton
07-03-2009, 09:36 PM
Did you sell it with a broker or did you put an add?

I sold it on craiglsist. It took about 3 weeks. I was fortunate, my accounts were in a high end area, that is very hard to get into. It is a little far from the main town, and it doesn't make it very cost effective to do 1-2 houses, so that limits the competition. Also the route, from start to finish passing every property(52), is only 25 miles.

Idonthaveaname
07-04-2009, 01:03 AM
Businesses range from 1-5 times yearly profit. 1 is like you doing all the work your self, and 5 would be a great business to take over without much effort from the owner. The average is 4 times yearly profit.

Nosmo
07-07-2009, 01:02 PM
One thing you need to do is talk with you accountant assuming you have been using one. For legal reasons and tax purposes if you have been depreciating your equipment on the books your are either going to have a profit or loss on each piece (depending on the book value after depreciation).

Say for example you find a buyer who is willing to buy the whole ball of wax---- equipment and pay goodwill for all of your accounts I'd say your accountant would want a figure for each piece of machinery etc. and what the accounts sold for.

The bottom line will be all income, less expenses, and what works out on the sale of the assets.

Nosmo

MLI
07-07-2009, 03:15 PM
The poor guy that bought United Landscape in Ma. went under last yr. They had an auction on equipment etc. Not many can buy an existing business,and flourish.

avjohnson
07-07-2009, 05:01 PM
Oh that's what happened. I saw the trucks last year and then suddenly didn't see them any more.

redmonds
07-11-2009, 02:07 PM
I am thinking about retiring and selling my business, I have no idea how to start, does anybody knows about any reputable appraisal company that can give me an idea on how much to sell it for?

Any ideas will be very much appreciated. Thanks
You might want to check out sellmygreenbusiness.com

ford550
07-11-2009, 11:18 PM
It's always been my belief that, why buy the accounts when, if your going out of business/retiring, your accounts will just go back into the pool. I have had a few opportunities to buy up smaller companies and after looking at all the numbers, I could put a fraction more into more advertising and lock up accounts that I would not lose if I had paid for them.

Worth, just like everything else, is only as good as what someone is willing to pay.

Good luck.

supercuts
07-14-2009, 07:39 AM
It's always been my belief that, why buy the accounts when, if your going out of business/retiring, your accounts will just go back into the pool. I have had a few opportunities to buy up smaller companies and after looking at all the numbers, I could put a fraction more into more advertising and lock up accounts that I would not lose if I had paid for them.

Worth, just like everything else, is only as good as what someone is willing to pay.

Good luck.

agreed, i dont think id ever pay money for an accout, if anything MAYBE at the price of one mowing. all id pay for is equipment and want the lawns with it. ive been handed many lawns for free, and ive handed many away that were a bit further out of my town.

mdlwn1
07-14-2009, 12:33 PM
You would be lucky to see 35 cents on the dollar/yearly gross..+ equpiment...for an established business in the 250k-650k range. Construction...less Chemicals...more. A lot of guys sell to their forman on a monthly payment schedule.

motorscot
12-19-2009, 05:31 PM
Just commenting on some things that I have read. It seems as if paying around 2.5x per month per account is not a bad idea. I would pay that in a heartbeat if there were some things done upfront:

1. Seller signs a non-compete
2. Seller intros me to his clients and advises them in writing of what is happening and why
3. Clients agree to continue service with a new contract if applicable

Am I wrong in this?

360ci
12-20-2009, 11:48 PM
I'd advertise it online, or in the local paper for what you think it's worth, and tack on another $15-40K or so for buying room. This way if someone is serious, they'll contact you and you should be able to work out a reasonable offer. I know that's a bit vague but it's a start. I don't know what your business is worth, only you do, and once you figure that out then you'll be able to advertise a reasonable selling price.

Lawn Man Dave
12-21-2009, 07:27 PM
There is a local that years ago sold the lawn care side of his buisness...... 4 trucks, 4 72 inch dixies per truck....... he sold it for half what he made from the company anually. I am sure the buyer looked over the contracts and all first.... this was a good dollar amount because even it all the contracts droped him after the first year he would have still made money. He sold everything.... turn key operation...... most of what he made was just in the equipment......

For the non contract jobs good luck.

The only way I would by contracts is if the person who signed the contract knew about me buying it and agreed to keep me untill at least the end of the year and only if I knew I would make my money back and then some.... enough for it to be worth my while.... by the end of the year..