Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #51  
Old 12-24-2009, 12:25 AM
PROCUT1's Avatar
PROCUT1 PROCUT1 is offline
LawnSite Platinum Member
 
Join Date: Dec 2003
Location: TN
Posts: 4,842
This thread is an example of why I didnt even mention on here when I was selling my business.

What everyone on here would have said was worthless, pays my mortgage every month and will for many more years.
__________________
Trying to figure out how to get rich and not leave my bed.
Reply With Quote
  #52  
Old 12-24-2009, 03:11 AM
Grass Shark's Avatar
Grass Shark Grass Shark is offline
LawnSite Senior Member
 
Join Date: Aug 2009
Location: Zone 7
Posts: 662
Mow only company with a 1000 weekly customers right? $300.000 Net. I think you could do $300,000 Net with 300 customers if you would properly upsell. Fert, Chem, Mulch, Etc. Cutting grass pays your bills, the upsell PAYS you! Dump 1/4 of your $1.5 Mil into your company and put your people on contract. Your buying a bunch of equipment in my opinion. I'd be scared to pay $300,000 there is only about $150,000 in physical capital and a bunch of people who are not on any type of contract. Just my opinion.
__________________
1999 F250 Diesel
2000 F350 Dump
16Ft Enclosed Trailer
10Ft Dump Trailer
12Ft Leaf Box Billy Goat
60" Exmark Lazer Z
52" Hustler Mini Z
44" Toro Z Master
36" Bunton WB
21" Honda WB
Redmax & Stihl Handhelds
Bunch of other crap!!
Reply With Quote
  #53  
Old 12-24-2009, 09:59 PM
PROCUT1's Avatar
PROCUT1 PROCUT1 is offline
LawnSite Platinum Member
 
Join Date: Dec 2003
Location: TN
Posts: 4,842
Not easy to find 300 customers to spend over $10,000 a year each on their yards
__________________
Trying to figure out how to get rich and not leave my bed.
Reply With Quote
  #54  
Old 12-26-2009, 11:53 AM
Lawn Man Dave's Avatar
Lawn Man Dave Lawn Man Dave is offline
LawnSite Senior Member
 
Join Date: Dec 2009
Location: Indianapolis, IN
Posts: 420
Quote:
Originally Posted by PROCUT1 View Post
The type of person who would be buying that example company is not likely on lawnsite.

Anyone who would make an offer like the examples here would be laughed at like a little kid.

That example is "big boy world"
I have made offer's and been laughed at and had offers givn to me that I laughed at......... that's buisness.

I know 300k would get laughed at...... it is all about the risk vs potential reward for most people.....

Maybe somone could you explain how it would be worth dumping say a million into a company when with no growing it will not pay for itself (not including any variables).... with no promice that the the customers will stick around after the first year or that it will continue to grow. If it tanks after the first year then what happens with that million you invested?

I will allways think that it is better for the seller to sell off the accounts and to then sell the equipment....

Last edited by Lawn Man Dave; 12-26-2009 at 12:02 PM.
Reply With Quote
  #55  
Old 12-26-2009, 01:56 PM
motorscot's Avatar
motorscot motorscot is offline
LawnSite Member
 
Join Date: Jun 2008
Location: Birmingham, Al
Posts: 133
Lots of ifs:
Trucks: $60,000
Mowers: $36,000
Handhelds: $5,000
Accounts @ 2.5 x per month = $218,750 ($1,050,000/12 x 2.5)
Total: $320,000 starting bid
__________________
Shelby Lawn Enforcement
"Bringing Lawn and Order to Grass Everywhere"

www.shelbylawnenforcement.com
_______________________________________

My stuff: black truck pulling a trailer with lawn equipment in it

Stop Lowballing!! http://www.gopherforum.com/showthread.php?t=7898
Reply With Quote
  #56  
Old 12-26-2009, 06:00 PM
willretire@40's Avatar
willretire@40 willretire@40 is offline
LawnSite Bronze Member
 
Join Date: Nov 2004
Location: VA
Posts: 1,380
I would say $600k for everything with the owner staying on for his advice for 6months of the season but be available once a week for a meeting for 6months there after.
Posted via Mobile Device
Reply With Quote
  #57  
Old 01-26-2010, 02:35 PM
Rivervalleylawns Rivervalleylawns is offline
LawnSite Member
 
Join Date: Feb 2009
Location: Oklahoma
Posts: 146
For everyone that says what if the customers dump you, then you have nothing.
If you have a biz with 1000 customers i guarantee you that you are constantly dropping and replacing with new customers. Its the way any large company operates. You can figure a +/- of 2 or 3%. Just numbers for an example.
And like someone said previously with the 5% of gross into advertising. You are constantly advertising, and given that you already have a large company, opportunities are endless.

Also keep in mind this is for mowing only. Spraying, Cleanups, Mulch, Installs would all be easy to introduce with a customer base of 1000. Plus when your advertising new services, you have a great name branding to sell your services.

I would guess something of this size and equipment, would easily go for 1 to 1.5 million.

My neighbor in az, sold his business after like 10 years. He had like 5 to 7 maintenance crews and i think 3 to 5 install crews. I think he sold for like 9 million. I will say it is a little high for that, however he did have some amazing contracts not only for install but maintenance crews. He included a 4.2 million contract to the new buyer, which was for installs on a entire new neighborhood.
__________________
Loving every minute of it!!!!
Reply With Quote
  #58  
Old 01-26-2010, 02:36 PM
Rivervalleylawns Rivervalleylawns is offline
LawnSite Member
 
Join Date: Feb 2009
Location: Oklahoma
Posts: 146
O yea by the way, he sold it and started to only do design. He said he will still clear 500k+ a year only drawing.
__________________
Loving every minute of it!!!!
Reply With Quote
  #59  
Old 01-26-2010, 03:08 PM
fiveoboy01's Avatar
fiveoboy01 fiveoboy01 is offline
LawnSite Silver Member
 
Join Date: May 2006
Location: Southern WI
Posts: 2,963
1 cut, seriously? Even a month's worth of cuts?

Lots of pot smokers in this thread.
__________________
Bill

Originally posted by SLR:
Quote:
you really got off fortunate and lucky 5-0boy1!..imagine if you an her created a little 5boy1,now there's a nicely entangled chaotic toranado vise!
THE VERY BEST SOURCE OF INFO FOR THE GREEN INDUSTRY! ALL YOUR QUESTIONS ANSWERED!
Reply With Quote
  #60  
Old 02-21-2010, 11:25 PM
willretire@40's Avatar
willretire@40 willretire@40 is offline
LawnSite Bronze Member
 
Join Date: Nov 2004
Location: VA
Posts: 1,380
bumping to the top.
Posted via Mobile Device
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 10:15 PM.

Page generated in 0.09945 seconds with 9 queries