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Old 03-24-2007, 10:09 AM
Brian McS Brian McS is offline
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Selling Acct's.

I would like to get some idea's on what a lawn maintenance account could be sold for. I'm moving out of an area, and have been approached on the accounts. I'm thinking about a percentage but not sure about what percent.
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Old 03-24-2007, 10:33 AM
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chipk1 chipk1 is offline
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Originally Posted by Brian McS View Post
I would like to get some idea's on what a lawn maintenance account could be sold for. I'm moving out of an area, and have been approached on the accounts. I'm thinking about a percentage but not sure about what percent.
If I recall correctly, the general consensus here is total of one month's income. I really don't agree with that of you are selling 30+ accounts. Your time spent gathering that many accounts has to be worth much more. In this case, I would say at least 6 month's A/R would be fair.If you are only selling a handful, that the 30 day A/R rule is probably correct.
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Old 03-24-2007, 10:43 PM
Duramaxdiesel Duramaxdiesel is offline
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I agree 6 months is the norm around here.
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Old 03-24-2007, 10:58 PM
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ProStreetCamaro ProStreetCamaro is offline
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Quote:
Originally Posted by Duramaxdiesel View Post
I agree 6 months is the norm around here.
around here most guys get paid for 2 cuttings per account.


So according to you if somebody wanted to buy a small business that has 60 customers and each one averaged $30 per cut then the buyer would have to pay $30X60 = $1800 and $1800X4 weeks = $7,200 and $7,200X6 months = $43,200 which according to you is the going rate in your area. YEAHHHHHH RIGHTTTTTT
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Old 03-24-2007, 11:09 PM
Duramaxdiesel Duramaxdiesel is offline
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My last run that I sold had 100 accounts @ $60 per month. It brought me in $6000 a month and took a day and a half to cut and whip. I sold the accounts for $36000 in less than a week.
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Old 03-24-2007, 11:19 PM
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ProStreetCamaro ProStreetCamaro is offline
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Quote:
Originally Posted by Duramaxdiesel View Post
My last run that I sold had 100 accounts @ $60 per month. It brought me in $6000 a month and took a day and a half to cut and whip. I sold the accounts for $36000 in less than a week.

Ahhh I see your in canada. I bet the lawn business up there isnt as over crowded as it is here. Never a day goes by when I see any less than 30 different lawn companys operating in neighborhoods. Around here lawns come cheap.
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Old 03-25-2007, 07:18 PM
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Do some searches on the net you will see that many established lawn businesses with basic equipment for one operator go for anywere from 30K-70K with around 60 accounts depending on the area you are looking in.
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Old 03-25-2007, 08:18 PM
Pristine PM Pristine PM is offline
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Canada... does have many grass cutting companies

Quote:
"Ahhh I see your in canada. I bet the lawn business up there isnt as over crowded as it is here. Never a day goes by when I see any less than 30 different lawn companys operating in neighborhoods. Around here lawns come cheap"
I don't think you could possibly make that kind of statement. Montreal is a large city with many many companies working in it. Toronto is even bigger and I can tell you very clearly that there is alot of competition in Toronto.

I think that is great that you got $36000 for just your accounts, but I cannot understand why someone would really want to pay that much for something that with a bit of hard work, and some luck you could get.

You must have a very tight route as well as very small lawns. In Toronto most lawns are $25 and up a cut.
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