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Old 11-09-2012, 10:18 PM
32vld 32vld is offline
LawnSite Gold Member
 
Join Date: Feb 2011
Location: LI NY
Posts: 3,287
A business usually should earn enough profit to equal what was paid for the business in 2 to 3 years.

The point is that you don't want to spend 20 years to earn back what you spent to buy a business. You want to spend the last 18 of those years making enough money to be able to retire.

Assets are worth what someone is only willing to pay for them. A book may say your truck, mowers, etc are worth $20,000. Many people looking to start doing landscaping usually have some of the needed equipment. Or already have a LCO business and do not need half of what you have. They just want your customers. At best they may only be willing to pay $10,000 for the equipment.

Then are your accounts tied to long term contracts for at least 3 years left on them and without 30 day termination clauses. Because if theses customers leave then the buyer has bought nothing of value.

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