What's a Company Worth?
As part of expanding, we are looking to acquire a smaller landscaping company. It seems as though most people looking to sell are shooting for the moon and I don't blame anyone for trying to get as much money as possible for their hard work, but what is realistic? Although one would do $200,000 in business or about a little more than $16,000 monthly they would also have about $9,000/ month in expenses. So $7,000/month in "profit".... $84,000/ yr profit on signed 4yr contracts (3yrs left). I cant see asking $250,000 when it would take 3yrs to make back the money (with no money in pocket) with substantial risk of not renewing the contracts.