How to value a fert/squirt business??

[Jbh0724]

I am looking to go into business with someone. We want to lay out how things will be valued and lay out an exit strategy if things do not work out. My question is this...how do you value a fert/squirt business? Should we base it on a percentage of the gross sales plus equipment? We are both experienced in lawn maintenance and are looking to expand into the weed control aspect of things. Any and all input will be welcomed. Thanks
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[GreenUtah]

You would value it as what you could sell it for. That means 2.5 times net plus equipment current value (not replacement costs), current inventory, etc... for an established business (1st year sales are not an established business). Further items of potential value may include marketing pieces and the name itself, if it's been heavily branded and a buyer might intend to keep it. That's really about all there is of value, the rest are liabilities.