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  #1  
Old 01-04-2013, 10:13 PM
Riverstonelc Riverstonelc is offline
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Join Date: Dec 2010
Location: knoxville Tn
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What's the business worth. 500k revenue

I have a lawn care and landscape business in tn . We do a little over 500k in revenue per year. Have 4 dodge diesels , one is a mow bed and one a flat bed. Have a 2011 Kubota tractor and back hoe have a 743 bob cat . Have a couple of mowing trailers and a big tex dump trailer, and big tex goose neck. Have aerators, 5 exmark walk behinds 2010 ,1 grandstand 2011. 1 Kubota 326. And an exmark metro 26 and a couple other bagged mowers. 15 or 20 weed eaters ,2 pole saws , 8 various Stihl chain saws, a nice portable office, 30 by 31 metal building 2 very effective websites . A staff of 7-9 people that are well trained. A well located lot with rent of 500 ., 1 acre comm property ,retail sales if wanted . We run 2 mow crews and 1 landscape crew and have 1 rig for back up. Owner just needs to manage , estimates,billing , production control , quality control. Take home 100-140 k per year .. Just looking for help with a value or thoughts. Thanks
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Cummins Diesel
Duramax Diesel
Kubota z331 72"
Exmark T.T. 52"
Exmark 26"
Kubota bx 25
Bix Tex 12' dump
20 ft Landscape trailer
Stihl and shindaiwa small engines


Riverstonelawn.com
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  #2  
Old 01-05-2013, 08:30 AM
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snomaha snomaha is offline
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Location: midwest
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Quote:
Originally Posted by Riverstonelc View Post
I have a lawn care and landscape business in tn . We do a little over 500k in revenue per year. Have 4 dodge diesels , one is a mow bed and one a flat bed. Have a 2011 Kubota tractor and back hoe have a 743 bob cat . Have a couple of mowing trailers and a big tex dump trailer, and big tex goose neck. Have aerators, 5 exmark walk behinds 2010 ,1 grandstand 2011. 1 Kubota 326. And an exmark metro 26 and a couple other bagged mowers. 15 or 20 weed eaters ,2 pole saws , 8 various Stihl chain saws, a nice portable office, 30 by 31 metal building 2 very effective websites . A staff of 7-9 people that are well trained. A well located lot with rent of 500 ., 1 acre comm property ,retail sales if wanted . We run 2 mow crews and 1 landscape crew and have 1 rig for back up. Owner just needs to manage , estimates,billing , production control , quality control. Take home 100-140 k per year .. Just looking for help with a value or thoughts. Thanks
Lots of variables so this is general.

I would want to see the equipment and the customer base separated - if not I'm offering .25 cents on the dollar for the equipment. I would value the customer base on what I thought my net income could be. I want to pay back the money with after tax income in 3 years or less.

Is the 100k profit or profit and your salary?
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  #3  
Old 01-05-2013, 09:11 AM
djagusch djagusch is online now
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Location: MN
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A cpa would give you the best advise. I would take any price from ls with a grain of salt.
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  #4  
Old 01-05-2013, 09:32 AM
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ELS Landscape ELS Landscape is offline
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Location: Grand Prairie, Texas
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(assets - liability) X 2 is the basic formula.
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  #5  
Old 01-05-2013, 01:20 PM
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Efficiency Efficiency is offline
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EBITDA times 2-3 plus a lowball on the assets and you retain liabilities
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Old 01-05-2013, 05:09 PM
klogan011 klogan011 is offline
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Location: Augusta, Ga
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Something doesnt seem to add up. How do you have 7-9 well traing wmployees. Either you have 7 or you have 9. Lets say you have 9. At 40 hour a week 52 weeks a year and a rate of 10 per hour. Which I imagine landscape crew makes more. Thats 187, 200 not including taxes or insurance. Rent is another 6000. Lets say 300 a week in gas. Prob low for that many trucks. Thats 15600 per year. That puts u at 208200 total. Add 140k in profit that 350k. That only leaves 150k for other expenses and material for jobs. With equipment you have listed sounds like your doing hardscape which. That would be tough to have that high a profit margin on 500k. None of that even includes power bills, vehicle insurance, dot tax, blades, maintenance on equipment, payroll tax, ect. Just me figuring quick numbers in my head. Sorry for rypos. This was postwd on phone.
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Old 01-05-2013, 05:22 PM
Riverstonelc Riverstonelc is offline
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Location: knoxville Tn
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1 small paver job. Mostly lawn care and landscape maintenance . Mow guys are 9-11 per hour and landscape guys are 10-11 per hour. 7-9 guys means I have seven guys working in January and nine in season
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Old 01-05-2013, 06:06 PM
txirrigation txirrigation is offline
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There are a lot of basic formulas. I hear that you should sell it for what someone could realistically pay off in 7 years.
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Old 01-05-2013, 07:12 PM
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wbw wbw is online now
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Location: houston tx
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2-2.5 times benefit to owner.
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  #10  
Old 01-05-2013, 07:19 PM
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ELS Landscape ELS Landscape is offline
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Quote:
Originally Posted by Efficiency View Post
EBITDA times 2-3 plus a lowball on the assets and you retain liabilities
That is you buying right?
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