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View Full Version : If I were to sell, what's the ballpark value?


dmk395
01-24-2013, 09:21 AM
Just curious where I would be. 200k in maintenance sales. (hi end homes and some small commercial, very loyal base) Profit before my salary of $75,000. Equipment value (trucks, trailers, mowers etc.) $60,000. Very few contracts. 2 good employees. Any idea ballpark where I would be.
I want to keep going, BUT always curious...

spazfam
01-24-2013, 01:06 PM
I've heard in the past 1.5 times sales so I would say 300k

grassmasterswilson
01-24-2013, 01:26 PM
I think mowing is closer to .3 cents per gross dollar. Applications would be sold at a premium. Not counting equipment.

Your situation might be different. Could your 2 guys run the routes alone and the owner still take a nice cut of what's left.

I'd pay 120-130k. A lot would depend on how long you'd had some customers and what other services you've included or don't include. If you do 200k in mowing only then I might be able to upscale apps and seeding.

jrs.landscaping
01-24-2013, 01:35 PM
I'd say 120k at the high end.

Landrus2
01-24-2013, 01:42 PM
I'd say 120k at the high end.

With today's economy I think you right:weightlifter:

Will P.C.
01-24-2013, 04:22 PM
90-140K with the minute amount of details I know

snomaha
01-24-2013, 05:53 PM
Just curious where I would be. 200k in maintenance sales. (hi end homes and some small commercial, very loyal base) Profit before my salary of $75,000. Equipment value (trucks, trailers, mowers etc.) $60,000. Very few contracts. 2 good employees. Any idea ballpark where I would be.
I want to keep going, BUT always curious...

what is a fair market wage for you? - what would you of had to pay someone to do your job?

jbell36
01-24-2013, 06:23 PM
yeah, mowing is worth the least...more details, do you have any chemicals? irrigation? snow removal? equipment? etc...i've always heard a mowing business goes for about one months gross plus any equipment...but a chemical company can easily get one years gross if not more

Raymond S.
01-24-2013, 07:01 PM
So the real question...how do you find someone willing to pay $100k for a lawncare business?
Posted via Mobile Device

snomaha
01-24-2013, 07:12 PM
Are people speaking from experience or just guessing? 200k in revenue means that the owner is still very active in the day to day - the face of the company. With the limited info we have I would say that the estimates are way overvalued.

Will P.C.
01-24-2013, 08:21 PM
Are people speaking from experience or just guessing? 200k in revenue means that the owner is still very active in the day to day - the face of the company. With the limited info we have I would say that the estimates are way overvalued.

I was just throwing out a number since there are major details we don't know
He has 60k in equipment/trucks and I assume he has done a significant amount of research to come up with the 60k. Without the equipment his business isn't worth much. He is selling a job instead of a business. If everything was on the up and up (records, route, taxes, etc), I would probably offer 80k

jsslawncare
01-24-2013, 08:25 PM
I'm guessing ---$4.89 + you buying them lunch. (No I don't know.)

dmk395
01-25-2013, 08:30 AM
All the equipment is newer, and in good shape. Business consists of about 60% mowing, the rest is other maintenance, with about 20 solid application accounts. This does not include snow. I actually don't do snow, (rare around here because I travel a lot during winters). The snow would be an easy add on.
How does one go about selling a co?

jsslawncare
01-26-2013, 03:53 PM
How is snow an easy add on if its rare?

jrs.landscaping
01-26-2013, 04:17 PM
How is snow an easy add on if its rare?

He meant it's rare for a company not to do snow removal in his area. He doesn't do it because he travels in the winter.

dmk395
01-27-2013, 09:49 AM
If I added snow, my sales jump up significantly

jbell36
01-27-2013, 11:14 AM
i'm very interested to hear what others have to say, especially ones that have been through it before...

there is no definite answer or formula...mostly depends on the buyer...if you asked 200k, you might have a shot if you found the right person, but most people aren't going to be willing to pay over 100k...unfortunately snow removal can't be included because it's simply not a part of the business, it should be considered as a perk

i would take your best month during the growing season which includes mowing, chemical apps, etc, and add it to the true value of your equipment...i would say this is a good value...like i said, mowing usually goes for 4-6 cuts...i feel like my business is worth well over that so i would definitely ask for more around my gross sales...

jrs.landscaping
01-27-2013, 11:34 AM
i'm very interested to hear what others have to say, especially ones that have been through it before...

there is no definite answer or formula...mostly depends on the buyer...if you asked 200k, you might have a shot if you found the right person, but most people aren't going to be willing to pay over 100k...unfortunately snow removal can't be included because it's simply not a part of the business, it should be considered as a perk

i would take your best month during the growing season which includes mowing, chemical apps, etc, and add it to the true value of your equipment...i would say this is a good value...like i said, mowing usually goes for 4-6 cuts...i feel like my business is worth well over that so i would definitely ask for more around my gross sales...

This is where deals fall through. I emailed a company who was looking to sell out about purchasing their business. I was primarily interested in their accounts list as their equipment was all dated. I told them I would give them one months gross for the accounts (25 lawns,) he told me he was insulted with my offer and said the accounts were worth 100k :hammerhead:. Like the saying goes, "there's an A$$ for every seat" in the end a business is worth what someone will pay for it.

jbell36
01-27-2013, 11:45 AM
exactly...in other industries businesses go for 3-5 times the gross sales...in our industry, that is simply not the case...i don't think ive ever heard of a lawn company going for over 1 sales annual gross...

personally, i would be willing to pay a little more (in general) if i knew it was a great company, or if it was my main competition

clydebusa
01-27-2013, 12:28 PM
With no contracts to speak of, and minus the equipment I would say 40k.

seabee24
01-27-2013, 04:10 PM
I didnt read all the post but.

most other industires can sell for 2.5 their gross per year.

Lawncare - its a bit tuffer

What I personally would pay would be the total of the following

1. the fair market value of the equiptment total

2. fair value for shop/land if owned

3. I would look closely at the accounts. this is why you buy a buisness. but its also why the guy is selling it. If it doesnt work with his methods of operations or numbers, it may not work with yours either. your only going to retain and keep his accounts if you charge a similar price, you service in a similar or better method, and you can do both of those and be happy with the profit left over. IF the buyer evaluates the accounts and finds that they will fit then I would pay:

50% of guestimated yearly profit on seasonal contract accounts. (so an account of 40k with 30k in expense, profits 10k, i would be willing to pay 5k for a 1 year contract, possibly more for a multi year.

and / or 2 months of income on accounts that where under a service aggreement that was billed "per cut"

and /or 1 month of income on non contracted (job leads) accounts figuring that I would be able to retain 50-75% of them if i can charge the same price.

4. Then there is a wild card - do you get to keep the name? marketing material? website? Even if you buy out a company, and have a website, these things are worth money if they are professional. even if you change the name and phone number, do you think the calls will stop rigning the old number ...nope it will ring for 2 years. so the marketing has a value.

5. last wild card, am i eliminating a major compeditor? that can have value. Its one thing to buy a business and expand into a different area that you previously where not it.

But its a whole another to eliminate a compeditor. your not only buying his accounts, but your buying future work that is already in your area. heck you might have accounts already next door to his, and thus you can take his accounts, your accounts and become very profitable and gain a ton of efficency in some cases. In others, its just nice to know that when your placing bids, that is one less you have to worry about bidding against. I have a major compeditor that works tightly in a subdivision that I work tightly in. I would bet that I get 40% of the work, and he gets 40% of the work, and the other 20% goes with small guys. I would pay ALOT to buy that guy out and pretty much "own" and be exclusive to that subdivision. My marketing material would have better results, I could raise prices, i would have better efficencys. by eliminating him, I might even get to the point that the "smaller guys" taking the 20% couldnt even compete in that area.

Will P.C.
01-27-2013, 04:58 PM
This is where deals fall through. I emailed a company who was looking to sell out about purchasing their business. I was primarily interested in their accounts list as their equipment was all dated. I told them I would give them one months gross for the accounts (25 lawns,) he told me he was insulted with my offer and said the accounts were worth 100k :hammerhead:. Like the saying goes, "there's an A$$ for every seat" in the end a business is worth what someone will pay for it.


Everyone thinks their business is worth way more than it really is. Same thing with people selling their house. They are often shocked when the Realtor suggests a listing price.

scott martoccia
01-27-2013, 07:21 PM
I have read 3-4 months gross for accounts + fair market value for your equipment, but will all come down to what you can show on paper (tax returns, p&l, secured contracts, etc). If you are not in a big rush I would work on cleaning up the business on paper to make it more attractive.

ryde307
01-27-2013, 07:48 PM
For your size 2-3 months of gross is common plus market for equipment. That buys your name your contacts your books everything. There is still a ton of info that would effect that but thats a start. if you have been the same size same accounts for 15 years that helps if this is a 2 year old business it hurts.

I think I miss understood but you said profit before your salary of $70,000 was 60,000. So you are negative 10,000 every year on your books? So obviously you wouldn't need to be paid so put the 70 back in but then someone still has to do your job. Odds are you are very involved so on the cheap end the new business has 50-60k in new labor/help to pay to cover it. Back to $0. This will not help to sell the business. Again I might have misunderstood your first post though.

dmk395
01-28-2013, 12:55 PM
My odd ball guess would be 100k all in for everything with a non compete for 3 years. New owner makes it back quick, BUT it's still a lot of work. Just food for thought, and was wondering what others thought. Thanks