Need Help - What are accounts worth when selling?

[bishop65]

Hey guys,

This is my third year in business and I think I'm hanging up the tools after this one.

Reasons:

1) bad back- (barely can move at times)
2) massive competition
3) being under bidded left & right
4) Charging the rates that I orginally charged my first year to stay afloat.
5) Getting married and the new wife thinks the biz is a to much work for what I make!

My question is what is two years worth of one time clients, & numerous mowing clients worth when selling? I have a list of over 100 one time clients and about 10 regular weekingly mowings.

Also my equipment is 1.5 years old and is like brand new, what would be the resell value ?

Thanks for the help

Bishop



:alien:

[bruces]

Equipment - hard to say without knowing what it is, but I'd say probably about 1/2 of new if it is commercial quality in good shape.

Your accounts - in my opinion, the list of 100 one time customers is worthless. What would you pay for the name of someone who called me one time for mowing?

The 10 regular customers probably is worth something, but with just 10, unless they are large, it is not enough for someone to buy if they aren't already in the business.

Your best bet might be to find a competitor in the area and offer the accounts to them for a % of revenue for a certain period of time.

Good luck, but in my opinion, other that what your equipment is worth, you don't have much to sell.

[bishop65]

Bruce,

Let me better explain the situation,
The 100 + clients were not mowing clients. They were mulching, pruning, fall cleanups, etc. Many of these clients call me throughout the season for misc. work.

Two years of clients aren't worth a dime?

I was planning on selling everything as a package-

A 5 * 10 Trailer, 48" scag w/14 kaw, echo gas trimmer, aerator tractor attachement, & alot of misc. tools + two years of clients (ranging from one time -multiple jobs) & 10 mowing accounts for $4,000

(all the equipment is less then 2 years old and in great shape)

Is this reasonable or am I dreaming?


Bishop:alien:

[tramahor]

I thnk bruce is right, the 100 are still not worth a dime and the 10 accts would depend on how much you make monthly on them to give you a price. maybe 2500 for all.......

[shadow]

if I were to buy your 100 accounts that are on a on call basis for whatever they want done, who is to say they will ever call?, if there not on a contract they are worthless . No offense but I wouldnt pay a dime for 100 people who might not call me . ya know what i mean?

[landscaper3]

Around 10% for contrated customers. Equipment mabey 50% value without seeing. Those 100 customers arent worth anthing!
Sorry!

[smburgess]

I would say forget the customer list, it's not worth anything. The equipment - take pictures of it and put a price on them and post them on a bulliten board at your supermarket, or put them in the "Trading Post". In the last 6 years I've bought two other lawn maintenance companies, on did $350,000 and one did $150,000. with a customer list you're talking about isn't worth trying to sell as a "stand alone" business, you might be able to sell it to an existing business., but you'll be hard-pressed to get what you want out of it!

[MuskTurfKing]

I'm with the other guys, I wouldn't ever give a cent for someone else's account, I can just as easily go pick up more for free.

Hank

[bishop65]

Thanks for the info-

One more question,

My 10 mowing accounts bring in about $1,600 a month, would they sell for around $1,600 & do I have to resign all my customers over to the seller or does he act upon this himself?



Bishop

:alien:

[John Allin]

At $1600 a month, gross revenue, you might find someone to pay you about $800 for the whole bunch, if they are under written contract for at least one year. Throw in the list of 100 as an incentive....

On the equipment, I'd say these guys are about right... for the age, maybe 50% of new. Maybe.

[HBFOXJr]

Anyone have an idea about what fert accounts might be worth for 6 step application progam with applications properly priced and measured???

[heygrassman]

Bishop:

What part of the state are you in?

jf

[Sean Adams]

If your 10 clients produce $1600 monthly, on average $160 a month each divided by 4 weeks....$40 per cut per client...if this is based solely on mowing..... Sometimes it is common to sell accounts only at 2, 3, or 4 cuts per client. If you sold them at 3 cuts each at $40 each, that would be $120 per client, $1,200 for the list of 10. The equipment....it may be worth more to you to piece it out instead of finding one buyer interested in the 10 accounts....they might be more inclined to try and negotiate. If the equipment is in great shape, you may get more selling it piece by piece. The client list of 100 may be worth something. It may depend on consistency of the list. Could be a nice bonus to the list of 10 regular accounts. Break down the potential revenue generated by this list of 100 to make it more appealing.

Sean Adams