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  #41  
Old 08-27-2014, 02:43 PM
GaryBK GaryBK is offline
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Location: Canada
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The only ship that won't float is a partnership. Don't do it!
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  #42  
Old 08-27-2014, 04:51 PM
ajreeves ajreeves is offline
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Quote:
Originally Posted by GaryBK View Post
Why are you accounting on trimesters? Most of us use quarterly and monthly reports. (when we are not crazy busy and get behind. Lol)
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I don't do my accounting by trimesters, it was just the easiest way for me to present it given the current time of year. we are 2/3 the way through it
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  #43  
Old 08-29-2014, 01:01 PM
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Locqus Locqus is online now
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How I am doing mine. Equipment plus 15% gross sales. When time to sell time to sell. Also, what you think you should get for it never is what you will actually get lol.
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  #44  
Old 08-29-2014, 08:08 PM
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snomaha snomaha is offline
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Location: midwest
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Quote:
Originally Posted by ajreeves View Post
I really appreciate your insight. And I do understand your point. For some reason I am still tempted but leaning towards passing on the offer. Thanks to all who took the time to respond.
However, my original question remains unanswered, how do you value a lawn care biz? Is there a certain formula or method to determining that figure?
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How do you value any service business? My experience - some multiple X normalized earnings. Higher multiple means you have people and processes in place not solely dependent on you - lower means you own a job, not a business.

Hard assets will always be valued at auction prices. Goodwill, dependent on the above, will go at 3 to 6 times multiple.

In my region, a 5m business doing 10% net, would bring 3-4 normalized net profit + hard assets at auction price.
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  #45  
Old 08-30-2014, 11:04 PM
TigerElectrical TigerElectrical is offline
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Join Date: Sep 2013
Location: Northern Illinois
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I don't claim to be great at accounting but your numbers would mean something if you included all salaries (including owner salary) to get to net profit.

My first lawyer gave me fair warning on a couple things:
1. GCs are liars, and
2. Don't do a partnership without having him write the paperwork to dissolve it. He said something like "It's a marriage where you write the divorce papers before the wedding".
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  #46  
Old 09-06-2014, 08:21 PM
ajreeves ajreeves is offline
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Join Date: Oct 2013
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Quote:
Originally Posted by TigerElectrical View Post
I don't claim to be great at accounting but your numbers would mean something if you included all salaries (including owner salary) to get to net profit.

My first lawyer gave me fair warning on a couple things:
1. GCs are liars, and
2. Don't do a partnership without having him write the paperwork to dissolve it. He said something like "It's a marriage where you write the divorce papers before the wedding".
Great advice thanks!
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  #47  
Old 09-07-2014, 10:51 PM
BerkleyLand BerkleyLand is offline
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Join Date: Jan 2013
Location: Cincinnati, OH
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Do not do a partner. Trust me on this. I was in the same boat as you last year. I brought a partner on thinking that it would free up time for me to work on selling more and being in the field. It lasted 6 months. We didn't agree on anything we both had our own ideas on which way the business should go. I ended up paying 20k just have him go away.
That was the best move I have ever made. I hired a office manager she is great works the phones handled invoices and deals with my 1 other employee.
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