View Full Version : Business for Sale, How Much $?

Enviro Green
07-27-2004, 06:34 PM
After reading Tennissippi's thread about getting out, the thought occurred to me about pricing a business for sale.

There are two small guys here who are going out and one is giving me his accounts and the other I don't know yet.

What kind of numbers have some of your guys seen for the sale of turf management businesses? I am thinking about only fertilization and weed control, aeration, seeding, and that type of work, no lawn mowing or landscaping, and without signed contracts, but a prov en track record 1-2 years+ of working with a client and good name recognition.

I also know the sale price has to be slightly based on the market, but are the main numbers on the number of clients, the square footage, the gross/net, or what? What about equipment and trucks?

I did a couple of searches and found a little bit, but not much info. I would love to hear some input on this topic.



kickin sum grass
07-27-2004, 07:57 PM
I was recently offered 2 month worth of cutting for each account. That was the accounts only. I would bet it would be next to nothing for fert customers. Maybe the price of equipment and a little spare to boot. This is just talking buying a small company. Now if it was 1000 customers that would be different.

James Cormier
07-27-2004, 08:05 PM
Fert companies usually get about 20x's what mowing companies get.

I sold my mowing business and was lucky to get 20cents on the dollar, ive been offered $1.10 on the dollar for my fert business.

Enviro Green
07-27-2004, 09:07 PM

You mean $1.10 on the dollar for gross or net or where?

The last fert company I talked to had 4,000,000 sq ft being treated, grossed 140,000 and netted 40,000 after expenses and labor. Sold for 125,000. Or so the story went....

Sound close?


James Cormier
07-28-2004, 10:05 AM
EG, those numbers are based on gross, thats really the only number thats constent, everyones net will be different on the same gross

So a company grossing 140k should be able to sell for 140x1.10=$154,000

turf hokie
07-28-2004, 09:26 PM
I'm actually in the midst of purchasing a company that only does fert and chems. 225 customers for 1 years gross. all equipment except the vehicle included. seems to be the going rate.

07-28-2004, 10:02 PM
A well established company, with good accounts should be worth 1.5 to 3 times gross revenues. Check with a local broker to help you find the real value of the company you are looking at.

07-28-2004, 11:14 PM
specialtylc --

I'd like to see any company that went for 3X gross, or anywhere close to it. Usually 1-3 X discretionary cash flow is used. I've never seen a co. go 3x gross.

Enviro Green
07-28-2004, 11:24 PM

That's close to the numbers I have been given from a consultant, anywhere from 75-110% of gross, based on client numbers, and the equipemnt isn't so importnat as the client list itself.

Thanks for the input, that's what I was looking for, and thanks to the other folks too!