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Old 08-18-2014, 07:20 PM
ajreeves ajreeves is offline
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Join Date: Oct 2013
Posts: 31
How do I determine the value of my lawncare business?

Hey guys
I could use a little help with this.... Here's the situation.
A friend and long time subcontractor has made me an offer to buy into my company.

My numbers:
In biz 7yrs
Last yr Revenue 200k, net operating profit of 95k
This year projected revenue 390k projected net operating profit- 187k.
Equipment value - 180k
Loans- 56k

His numbers:
In biz 4 yrs
Last yr rev 100k, net operating 50k
This yr proj rev 150k, net operating 75k
Equipment value 120k
Loans 63k

Any advice on how I would determine what his buy in cost should be? We both offer similar services but he does not plow and I do.
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Old 08-18-2014, 07:20 PM
ajreeves ajreeves is offline
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We offer everything from mowing to hardscapes, no pesticides and no irrigation.
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Old 08-18-2014, 07:27 PM
whiffyspark whiffyspark is online now
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Location: Chesapeake beach
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Too small to have a partner.
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Old 08-18-2014, 07:32 PM
ajreeves ajreeves is offline
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Care to elaborate?
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Old 08-18-2014, 09:41 PM
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Snyder's Lawn Inc Snyder's Lawn Inc is offline
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If you making those number why would you want a partner to deal with
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  #6  
Old 08-18-2014, 09:44 PM
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Efficiency Efficiency is offline
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Location: zone 6
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Quote:
Originally Posted by ajreeves View Post
Hey guys
I could use a little help with this.... Here's the situation.
A friend and long time subcontractor has made me an offer to buy into my company.

My numbers:
In biz 7yrs
Last yr Revenue 200k, net operating profit of 95k
This year projected revenue 390k projected net operating profit- 187k.
Equipment value - 180k
Loans- 56k

His numbers:
In biz 4 yrs
Last yr rev 100k, net operating 50k
This yr proj rev 150k, net operating 75k
Equipment value 120k
Loans 63k

Any advice on how I would determine what his buy in cost should be? We both offer similar services but he does not plow and I do.
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heck, id buy in if your profit numbers were legit
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  #7  
Old 08-18-2014, 09:55 PM
ajreeves ajreeves is offline
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Join Date: Oct 2013
Posts: 31
Quote:
Originally Posted by Snyder's Lawn Inc View Post
If you making those number why would you want a partner to deal with
To increase my time with family, the ability to go out of town and have someone who has a vested interest in keeping the business running smooth. But most of all I think that it raises the ceiling on how big my business can be. I was hoping to open other parts of the business like a fert/ pesticide division. Which I would need a few specialized courses.
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Old 08-18-2014, 09:57 PM
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snomaha snomaha is offline
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Join Date: Jan 2004
Location: midwest
Posts: 507
Quote:
Originally Posted by ajreeves View Post
Hey guys
I could use a little help with this.... Here's the situation.
A friend and long time subcontractor has made me an offer to buy into my company.

My numbers:
In biz 7yrs
Last yr Revenue 200k, net operating profit of 95k
This year projected revenue 390k projected net operating profit- 187k.
Equipment value - 180k
Loans- 56k

His numbers:
In biz 4 yrs
Last yr rev 100k, net operating 50k
This yr proj rev 150k, net operating 75k
Equipment value 120k
Loans 63k

Any advice on how I would determine what his buy in cost should be? We both offer similar services but he does not plow and I do.
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Do you need capital, experience or locking in key people? If not, no reason to have a partner.

Help me understand "net operating profit" - your numbers are 4 to 5 times industry average for very well run outfits. Ill guess - no fair market wage for you included?
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Old 08-18-2014, 10:04 PM
ajreeves ajreeves is offline
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Join Date: Oct 2013
Posts: 31
Quote:
Originally Posted by snomaha View Post
Do you need capital, experience or locking in key people? If not, no reason to have a partner.

Help me understand "net operating profit" - your numbers are 4 to 5 times industry average for very well run outfits. Ill guess - no fair market wage for you included?
That's right, that is before I collect a salary. Maybe I have the wrong definition of net operating profit-
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Old 08-18-2014, 11:17 PM
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Snyder's Lawn Inc Snyder's Lawn Inc is offline
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Join Date: Feb 2011
Location: Kirksville Mo
Posts: 3,698
Quote:
Originally Posted by ajreeves View Post
To increase my time with family, the ability to go out of town and have someone who has a vested interest in keeping the business running smooth. But most of all I think that it raises the ceiling on how big my business can be. I was hoping to open other parts of the business like a fert/ pesticide division. Which I would need a few specialized courses.
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How many employees you have now

Family time is nice
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