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View Full Version : What's my Company worth?


cgotro
09-02-2004, 04:26 PM
Curious? What dollar value would you think my company is worth? We are 70% commercial, 30% residential. All maintenance company (stopped doing landscaping last year), 95% of our income is monthly bill, contract work. We have a few "per cut" clients but most contracts one- year with a couple 2-year contracts. We will invoice just over $200,000.00 this season with about $30,000.00 in cash business on the side. If I sell I will sell with
1994 Chevy 1500 Xtra cab
2003 Hustler Super Z / 250 hours (60" Deck/ 25HP Kawasaki)
2002 Scag 36" Walk-Behind (15HP Kohler)
2004 Husqvarna 21" Push (7.0 HP Honda)
3 Red Max BCZ3000S String Trimmers (2004)
1 Red Max Edger (2004)
1 Red Max LRTZ Hedge Trimmer (Long Reach) (2004)
1 Shindaiwa Hedge Trimmer (2002)
1 2002 6.5' x 18' trailer with all the racks
Plus all Hand Pruners and tools on trailer.

gogetter
09-02-2004, 05:01 PM
I'll let others answer your question.

But I have to ask you, you're doing $230,000 a year with that equipment, why do you want to walk away from that???!?!?!!?:eek: :confused:

wrtenterprises
09-02-2004, 05:34 PM
If you are turning that kind of money with only the equipment mentioned, you must have found the secret we are all looking for.....

Obviously you have an extra number in that total....

MWE
09-02-2004, 05:37 PM
How in the world to you make that kind of money with the equipment listed????;)

rodfather
09-02-2004, 05:37 PM
200 grand with that equipment? That I gotta see to believe...

rodfather
09-02-2004, 05:39 PM
Think the decimal point is over to the right WAY too far as well.

dvmcmrhp52
09-02-2004, 06:19 PM
He didn't say that was ALL the equipment, he said he will sell with:.............If he has more equipment, probably means he'll be back at it...............................
Dunno, just a thought......................

Lawn-Scapes
09-02-2004, 06:27 PM
How many men does it take to bring in those numbers?

Richard Martin
09-02-2004, 07:10 PM
$23,000 for the business and about $15,000 for the equipment. Total around 38 grand.

economiclawncare
09-02-2004, 07:13 PM
he can do that with a three man crew cut 35 yards a day 5 days a week and the average yard is $40 x 36 weeks = $252,000 just think that just mow it company is cuting 30 yards a day with a three man crew and push mowers i know he can do it with a z as long as his route is very tight

cgotro
09-03-2004, 12:23 PM
Hey Econolawncare. How do you like the husky ZTR. I need some in put on how they perform in the field. From someone who uses them full time Thanks gorto

cgotro
09-03-2004, 12:29 PM
We have cut 35 yards a day, they are in a very large golf community. You have to have your butt in gear. Your ducks in a row, and some very good people who love what they do.

Sean Adams
09-03-2004, 02:43 PM
Not sure which services you provide aside from mowing and not sure how many people you have working to produce this income.... but I would say your profit margin must be lower than hoped to walk away from nearly a quarter of a million in sales, even if you are keeping some equipment but releasing all clients and work.....and if they are on contract and very few pay on a "per mow basis", I would have to say that your business could be worth quite a bit....tight routes, easily accessible properties, and so on.....if this is the case, it only depends on how well you are able to sell the value of your business to the potential buyer.

Let's say your salary as the owner is included in your fixed expenses and your company operates around 20% profit when it is all said and done....that is your salary paid plus nearly $50,000 annually in profit. I personally would not sell the business for any less than those two numbers combined....again, assuming you are paying yourself a fixed salary as the owner.

And don't forget, you can "sell" your employees as well...pitching to the prospect that by keeping these specific employees production does not suffer (and quality)....

BUT, most of what I just said does not mean much because your numbers are what truly matter. If you are doing $230,000 and it takes 10 employees to do the work, you have other equipment and expenses, don't pay yourself a salary and are not recognizing much profit, I personally (as a potential buyer) would try and convince you I was doing you a favor by taking things off your hands.

Make sense?

out4now
09-03-2004, 02:52 PM
Originally posted by dvmcmrhp52
He didn't say that was ALL the equipment, he said he will sell with:.............If he has more equipment, probably means he'll be back at it...............................
Dunno, just a thought......................

A buyer with any brains will make him sign a non-compete agreement anyway so he better get as much as he can over book commonly refered to in accounting as "goodwill". I don't think the buyer is going to look at he equipment much in their decision but more at the accounts recievable, easy money when you have an entire community and less unpaid windshield time.

packmate81
09-04-2004, 12:00 AM
ill write you a check for $80-$100,000 up front. pay you to run it and give you a % of profits a year. as long as i can keep you around....

Let me know

cgotro
09-07-2004, 03:52 PM
I have a 3-man crew. We provide lawn and landscape maintenance. We take care or a large golf community which brings in about $100,000.00 a year. We also cut many lawns in that same neighbor hood. In the spring & fall we mulch the entire golf community and change the seasonal color. All our numbers are on the books. We also have the city landscape maintenance contract which is worth some good money. The golf community has not bid the work since we got it (3 yrs). As long a the service stays up to par they will not bid. We keep our service area small to keep travel time to a minumum. In one neighborhood we cut 7 homes in 1 1/2 hours with 3 men. The yards are all neighbors. We will not travel for anyone! Drive time kills ya!

cgotro
09-07-2004, 04:07 PM
We opened a lawn & garden store. We sell and service Hustler, Husqvarna, and Red Max. We are bringing in Scag 1st of the year. Business has been good and I could keep my lawn service, hire a foreman on salary but don't want too much on my head. Running a store and lawn service has been a BIG task this past year and as they both grow don't want service at one or the other to suffer. I have no hidden agenda just want someone GOOD and responsible to keep what I got here going and growing! I have a few leads with interest, we'll see where it gets us! Of course a non-compete will be included!

Mark McC
09-07-2004, 06:18 PM
I'd hire a manager/truck foreman for the lawn cutting if it's worth that much, unless your overhead means that the pay for a foreman would clobber your profits altogether. Quality might suffer some, but a little training in QC for your foreman should eliminate most of that and a willingness to look at their work from time to time might solve any lingering problems.

A quarter mil from three bodies, eh? Well, if it'll work there, it should work here in northern VA. God knows there's a ton of money around here. I feel pretty psyched!

James Cormier
09-07-2004, 07:09 PM
Curious? What dollar value would you think my company is worth? We are 70% commercial, 30% residential. All maintenance company (stopped doing landscaping last year), 95% of our income is monthly bill, contract work. We have a few "per cut" clients but most contracts one- year with a couple 2-year contracts. We will invoice just over $200,000.00 this .

I sold my mowing business a few years back, sounds like similar numbers, however we where 70 res 30 comm.

After trying to sell for few years I had to change my prices a bit.

All business brokers told me " mowing Companies " sold for 20% gross sales for one year, at first I laughed at that, but come to find out thats close to true.

You do get more if your getting out of any type of lawn or outdoor work, and willing to sign a 5 year no compete. Most buyers will only pay a little up front and break it down to a few payments over a course of a few years.

So I would think you best bet would be 40-50k not counting the equipment,

I sold for less because I wanted to keep all my customers for the fert business and most of them where plow customers. My no compete works both ways, I cant go back into mowing and the company that bought cant offer fert & squirt or plowing to those customers.

In the end we where both happy, and they sub me out to do all there fert work, and do there billing for there whole company. I had better systems in place