Price for Accounts

[Runner]

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.

[greenskeeper44]

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.

[Ric]

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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.



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[Runner]

Thank you for the replies so far.

[Efficiency]

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.

[Ric]

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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.



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[humble1]

Originally Posted by Runner

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.
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[humble1]

Originally Posted by Efficiency

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
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[Runner]

These aren't my accounts (I wish they were). They are of a friend of mine.