#1  
Old 06-01-2012, 09:53 AM
Runner's Avatar
Runner Runner is offline
LawnSite Fanatic
 
Join Date: Jul 2000
Location: Flint, Michigan
Posts: 13,503
Price for Accounts

Just wondering what a package of accounts is worth. These are all mainly high end accounts. 300 accounts. $130,000 gross. (Average charge is $140/acre). I really need some input on this.
__________________
Joe

Thank you, Dad - for always being the dad that you were. You truly are my hero. You always were.
Reply With Quote
  #2  
Old 06-01-2012, 10:28 AM
greenskeeper44 greenskeeper44 is offline
LawnSite Senior Member
 
Join Date: Jun 2008
Location: louisville, ky
Posts: 339
bought a small company a few years ago and we paid 75% of the yearly gross sales....talked to a few people at the time that had purchased accounts also and alot paid 1 years gross sales.
Reply With Quote
  #3  
Old 06-01-2012, 10:28 AM
Ric's Avatar
Ric Ric is offline
LawnSite Fanatic
 
Join Date: Sep 2001
Location: S W Florida
Posts: 11,895
.

Joe

Here is a link that might help you. You are basically selling income. Your local Economy etc will have a big effect on the price.

http://www.bizbuysell.com/



Right now Massey Pest Control is buying out everyone and keeping prices up. A general rule here in Florida is, an account is worth one years income. Price vary 75% to 125% depending on how tight & profitable the routes are.



.
__________________
.

it is one thing to do a off label applications. It is total stupidity to post it on the world wide web and expect people to approve.

You can lead a Donkey to water but you can't make the Jackass Drink

My People Skills are Fine. It is my Idiot Tolerance Skills That needs Work.

.
Reply With Quote
  #4  
Old 06-01-2012, 07:38 PM
Runner's Avatar
Runner Runner is offline
LawnSite Fanatic
 
Join Date: Jul 2000
Location: Flint, Michigan
Posts: 13,503
Thank you for the replies so far.
__________________
Joe

Thank you, Dad - for always being the dad that you were. You truly are my hero. You always were.
Reply With Quote
  #5  
Old 06-01-2012, 10:23 PM
Efficiency's Avatar
Efficiency Efficiency is offline
LawnSite Bronze Member
 
Join Date: Apr 2011
Location: zone 6
Posts: 1,267
technically EBITDA is what is being bought/sold and the multiple is based on the absolute amount. However, as rule 100-125% of gross is the ballpark.
__________________
If this post seems mean, it's probably because I'm drunk posting. Maybe my next one will be better...
Reply With Quote
  #6  
Old 06-01-2012, 11:55 PM
Ric's Avatar
Ric Ric is offline
LawnSite Fanatic
 
Join Date: Sep 2001
Location: S W Florida
Posts: 11,895
.

I get at least 3 to 4 contacts a month wanting to know if I am selling out. Most are from Business brokers. But every so often TG/CL or some other big boy contact me direct. I know others in my area get the same thing.



.
__________________
.

it is one thing to do a off label applications. It is total stupidity to post it on the world wide web and expect people to approve.

You can lead a Donkey to water but you can't make the Jackass Drink

My People Skills are Fine. It is my Idiot Tolerance Skills That needs Work.

.
Reply With Quote
  #7  
Old 06-02-2012, 05:50 AM
humble1's Avatar
humble1 humble1 is offline
LawnSite Silver Member
 
Join Date: Nov 2007
Location: MA
Posts: 2,481
Quote:
Originally Posted by Runner View Post
Just wondering what a package of accounts is worth. These are all mainly high end accounts. 300 accounts. $130,000 gross. (Average charge is $140/acre). I really need some input on this.
Are you buying or selling?
Also what is the yearly add on rev. Aerations etc, to me if the add ons are part of the 130K its not guaranteed sales next year.
How much equipment and age of equipment if any goes along with it.
What is the low and high end per acre where your at. Up here TG is in the low threes per K where I'm in the 5 to 6.5per K range depending on the program and difficulty of the property per acre.
Posted via Mobile Device
Reply With Quote
  #8  
Old 06-02-2012, 05:54 AM
humble1's Avatar
humble1 humble1 is offline
LawnSite Silver Member
 
Join Date: Nov 2007
Location: MA
Posts: 2,481
Quote:
Originally Posted by Efficiency View Post
technically EBITDA is what is being bought/sold and the multiple is based on the absolute amount. However, as rule 100-125% of gross is the ballpark.
I think that the per comes from what chemlawn would buy someone out for, but they paid a guy I know over 200 percent on 5000 accounts to get back into the NH seacoast. Yup Dennis made millions
Posted via Mobile Device
Reply With Quote
  #9  
Old 06-02-2012, 10:03 PM
Runner's Avatar
Runner Runner is offline
LawnSite Fanatic
 
Join Date: Jul 2000
Location: Flint, Michigan
Posts: 13,503
These aren't my accounts (I wish they were). They are of a friend of mine.
__________________
Joe

Thank you, Dad - for always being the dad that you were. You truly are my hero. You always were.
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

Layout Style:




Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2015, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 02:29 AM.

Page generated in 0.08998 seconds with 10 queries