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  #1  
Old 05-06-2012, 07:06 PM
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madmax madmax is offline
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Join Date: Mar 2004
Location: 65721
Posts: 34
What to sell for?

Thinking about selling my business this year. Not sure what to price it at. Any suggestions.
1999 Dodge Ram
21 ft trailer
2 61 mowers both with 1000 hrs
36 walk behind
44 walk behind hydo
Trimmers and blowers and some misc stuff
Two years ago I did 70,000 but had to cut back, the last two years did 50,000 working 4 days a week. 50 plus accounts.
Just wondering. Was thinking about 40,000 but not sure.
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  #2  
Old 05-06-2012, 07:20 PM
kmaslcks kmaslcks is offline
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I ask more than 40,000 unless you are going to sell your equipment separate. For just the equipment figure out a price and then figure out a price for the clients. Are you willing to sell equipment separately?
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  #3  
Old 05-06-2012, 07:26 PM
SSmith SSmith is offline
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Location: Cincinnati, Ohio
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Quote:
Originally Posted by madmax View Post
Thinking about selling my business this year. Not sure what to price it at. Any suggestions.
1999 Dodge Ram
21 ft trailer
2 61 mowers both with 1000 hrs
36 walk behind
44 walk behind hydo
Trimmers and blowers and some misc stuff
Two years ago I did 70,000 but had to cut back, the last two years did 50,000 working 4 days a week. 50 plus accounts.
Just wondering. Was thinking about 40,000 but not sure.
Truck - Need more info. I'll say $3500 tops.
Trailer - Enclosed? Need more info. I'll say $2000 on the best day.
61's - Need more info. I'll say $6000 for both on a really good day.
36 - Need more info. I'll say $400.
44 - I'll say $1000
Accounts - Do you have contracts? How long? How do they pay? How often? I'll say 10 grand at absolute best and that's pushing it. Really pushing it.

What's that? 25k? Could be more with proper info about the stuff. I doubt it could possibly go for more than 30k without finding a sucker, though. Every hillbilly and out of work guy cuts grass nowadays. Your equip loses half its value the second you start it. The truck isn't worth much. If it's not 4WD it's not worth anything much at all.
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  #4  
Old 05-06-2012, 08:54 PM
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madmax madmax is offline
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No, sell everything all together.
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  #5  
Old 05-06-2012, 08:59 PM
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madmax madmax is offline
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Location: 65721
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Truck is four wheel and book is about 5000.00 All other equipment is about what you came in at. Have had 85% of accounts for over 12 years. I know every hillbilly out there is mowing but not doing a good job.
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  #6  
Old 05-06-2012, 09:28 PM
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bohiaa bohiaa is offline
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Location: Bellville Texas, near Houston
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a 99 dodge 4 wheeler should go for around 1.5 to 2k, IF you can sell it.

Most everyone thinks what they have is worth a LOT more than it really is,

the used Equipment, is JUST that, used. and it's been used commericialy.

Not sure how you have done your taxes, BUt the depershion on it, should tell you everything you need to know....
the walk behinds should run around 1k
the accounts are not worth much, one too 2k.
the non disclosure statement would be the only thing of REAL VALUE here.

But good luck with it,
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  #7  
Old 05-06-2012, 09:47 PM
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madmax madmax is offline
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Location: 65721
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Wow, it sounds like your telling me to sell a 14 years business doing 50,000 plus a year for about 5000. Thats just bad business.
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  #8  
Old 05-06-2012, 10:21 PM
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bohiaa bohiaa is offline
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Location: Bellville Texas, near Houston
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Quote:
Originally Posted by madmax View Post
Wow, it sounds like your telling me to sell a 14 years business doing 50,000 plus a year for about 5000. Thats just bad business.
14 years ???


WAHT HAPPENED ?

why only 50,000 per year ???

as you know, or should your taxed at 52% today. again I dont know how you structured this company. But if it's only turning 50k it's in serious trouble!!

I know solo guys turning 120,000. per year. the taxes on this sale would kill you. If you tried selling for 70 you wild prob pay 50 in taxes.

NOT sure about you, BUT I pay enoulf taxes.
it may be best to just close the doors claim a loss, and take the tax break from this.

I assume this truck is your personal truck, it's NOT commerical, so there goes that. and besides it's 13 years old. it's just not worth anything. as a trade in you may get 3k for it...

with 50 accounts sounds like you really blew it. these must be 25 to 35.00 each.....

whne a person sells a customer service business the rele of thumb is that you will loose about 50% of them. due to change. this would drop you down to 25,000. per year. the price of fuel should eat up 25 to 35% of that. then taxes being at 52%, well you do the math...

Best of luck to you
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  #9  
Old 05-06-2012, 11:15 PM
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madmax madmax is offline
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Location: 65721
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I'm set up as an LLC so tax is less than 33% Might want to have your CPA set you up as an employee and than take out dividends.

Was doing 70000 per year working 32 weeks a year up until the last two years when I cut back to take care of my mom who died of cancer, so I didnt blow it I just choose to do the right thing.

I cant see any solo doing 120000 per year. Thats 120000 / 32 weeks / 30 per yard. Thats 125 yards a week or 17 a day 7 days a week. Impossible.

I was just asking for some opinions not a lecture.

Thats the worst thing about this site. You always get someone who thinks they know it all.
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  #10  
Old 05-06-2012, 11:23 PM
herler herler is offline
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Get a load of this, statistically speaking 98% of businesses don't make it to 10 years, so I'm guessing 2 out of every 100 folks I speak to would be telling the truth...

Last edited by herler; 05-06-2012 at 11:32 PM.
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