Originally Posted by limaint
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.
I feel the only way 200k in revenue would really be worth anything is if it were a group of banks or some other contracted large scale revenue stream. 200k in houses is generally too easy to come by. It wouldnt be the worst thing if you did an agreement where you pay as you go over the life of the contract...only problem is that both parties would have to solid business pro's....and it's safe to say that one of you isnt.