Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #11  
Old 10-09-2013, 09:51 AM
Outdoor Images Outdoor Images is offline
LawnSite Member
 
Join Date: Mar 2010
Location: Danbury, CT
Posts: 12
I also have an opportunity for another 5 commercial accounts next spring but I dont even know if I want to increase my payroll and expenses any more. I already am up there in these categories. If I keep the business I will be forced to pickup more commercial to create more funds but taxes suck too. I would rather sell and walk away. Im 29 years old. I can do many other things right now besides stressing me out every day.
Reply With Quote
  #12  
Old 10-09-2013, 10:03 AM
Gmgbo Gmgbo is online now
LawnSite Senior Member
 
Join Date: Nov 2004
Location: Thomaston, CT
Posts: 379
In my personal experience....I have purchased accounts for 25% of their gross. When purchasing equipment the more I bought, the less I paid.

I believe you will need to find a large company with the $$ to buy you out. In the past I have gone to the bank looking for money to buy companies. (I have my loans and line of credit with this bank) They didn't even want me to reply. I have had good luck with owner financing believe it or not.

On average, when the clients found out about the change in ownership 1 in 10 canceled.

$230,000 + 50,000 equipment x20% discount: $184,000
$500,000 gross x25% :$125,000

Sale Price: $309,000

What do you net, people would want to know how long it would take to make their money back?
__________________
Premier Landscaping L.L.C.
Reply With Quote
  #13  
Old 10-09-2013, 10:08 AM
Outdoor Images Outdoor Images is offline
LawnSite Member
 
Join Date: Mar 2010
Location: Danbury, CT
Posts: 12
i purchase equipment every year and am always buying something for taxes so the last few years I only netted 40k a year in actual profit.
Reply With Quote
  #14  
Old 10-09-2013, 10:13 AM
Outdoor Images Outdoor Images is offline
LawnSite Member
 
Join Date: Mar 2010
Location: Danbury, CT
Posts: 12
Everyone keeps telling me I should ask about 400k-500k. Not sure if thats right?
Reply With Quote
  #15  
Old 10-09-2013, 10:32 AM
Efficiency's Avatar
Efficiency Efficiency is offline
LawnSite Senior Member
 
Join Date: Apr 2011
Location: zone 6
Posts: 987
Quote:
Originally Posted by Efficiency View Post
If you can show financial statements, fmv of assets plus 2-3 timea net income is a decent place to start.
buying for tax breaks is a sign of poor management IMHDAO

or if you want to get really technical, you can start you asking based on EBITDA since you dug yourself into a NET hole.
__________________
If this post seems mean, it's probably because I'm drunk posting. Maybe my next one will be better...
Reply With Quote
  #16  
Old 10-09-2013, 10:37 AM
Outdoor Images Outdoor Images is offline
LawnSite Member
 
Join Date: Mar 2010
Location: Danbury, CT
Posts: 12
Great! thanks for the amazing technical help efficiency!
Reply With Quote
  #17  
Old 10-09-2013, 10:39 AM
Efficiency's Avatar
Efficiency Efficiency is offline
LawnSite Senior Member
 
Join Date: Apr 2011
Location: zone 6
Posts: 987
what else are you wanting? I can broker the deal for a fee if you want.
__________________
If this post seems mean, it's probably because I'm drunk posting. Maybe my next one will be better...
Reply With Quote
  #18  
Old 10-09-2013, 10:45 AM
Efficiency's Avatar
Efficiency Efficiency is offline
LawnSite Senior Member
 
Join Date: Apr 2011
Location: zone 6
Posts: 987
try this: http://en.wikipedia.org/wiki/Earning...d_amortization

or this:
http://en.wikipedia.org/wiki/Net_income
__________________
If this post seems mean, it's probably because I'm drunk posting. Maybe my next one will be better...
Reply With Quote
  #19  
Old 10-09-2013, 10:46 AM
Efficiency's Avatar
Efficiency Efficiency is offline
LawnSite Senior Member
 
Join Date: Apr 2011
Location: zone 6
Posts: 987
or when the purchaser assesses their investment, they would look at something like this: http://en.wikipedia.org/wiki/Roic (helpful for you to consider when arriving at a valuation)
__________________
If this post seems mean, it's probably because I'm drunk posting. Maybe my next one will be better...
Reply With Quote
  #20  
Old 10-11-2013, 10:18 PM
dirtyoldman1 dirtyoldman1 is offline
LawnSite Member
 
Join Date: Apr 2010
Location: Alliance, Ohio
Posts: 9
I would think it would be hard to find someone with the money and/or credit. What about splitting up the business... Selling commercial accounts separate from residential separate from equipment?
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





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 09:01 AM.

Page generated in 0.07532 seconds with 7 queries