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  #1  
Old 03-20-2014, 08:47 PM
neblawncare23 neblawncare23 is online now
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Buying a Fert Business?

In the near future I may have an opportunity to buy a well established fert business. I am curious to see what you guys would pay for the business?

The Stats:
- 280 accounts
- Average 8,000 sqft per account
- Average price is $9.75 per thousand sqft
- Fert program has 4 applications

So 280 x 8000= 2,240,000 total sqft

2,240,000 sqft / 1000 sqft= 2,240sqft

2,240sqft x $9.75 per thousand sqft = $21,840 gross per app

$21,840 gross per app x 4 apps = $87,360 gross for year.

So what would you buy a fert business grossing $87,360 per year for. The business will include spray rig, and current customers? These numbers are just rough figures.
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Old 03-20-2014, 10:34 PM
neblawncare23 neblawncare23 is online now
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No one can tell me roughly of what you would buy this business for?
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  #3  
Old 03-20-2014, 10:55 PM
205mx 205mx is offline
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Old 03-20-2014, 11:18 PM
neblawncare23 neblawncare23 is online now
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Why that 205
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  #5  
Old 03-21-2014, 02:27 AM
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TPendagast TPendagast is offline
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Location: Wasilla, AK
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Quote:
Originally Posted by neblawncare23 View Post
In the near future I may have an opportunity to buy a well established fert business. I am curious to see what you guys would pay for the business?

The Stats:
- 280 accounts
- Average 8,000 sqft per account
- Average price is $9.75 per thousand sqft
- Fert program has 4 applications

So 280 x 8000= 2,240,000 total sqft

2,240,000 sqft / 1000 sqft= 2,240sqft

2,240sqft x $9.75 per thousand sqft = $21,840 gross per app

$21,840 gross per app x 4 apps = $87,360 gross for year.

So what would you buy a fert business grossing $87,360 per year for. The business will include spray rig, and current customers? These numbers are just rough figures.

spray rig? you mean a truck with tanks and a reel of hoses?

What about a perm green ride on spreader? how did this guy apply his product?

are you going to push 2 mil sq ft with an earthway?

Id buy it, and buy an aerator and market aerations too.

you could even hook up with a lawn mowing guy or two and counter refer each other. (that is if you don't already mow yourself)

I'd offer him 10% of gross plus whatever is fair for his equipment.

So assume 20k for the truck and 5k for the gear and 8700 for the list.
33.7k

You'll need the phone number, email , marketing materials, cards etc. Everything he has.
All his books and records, what app went where, how much, bla bla bla.

have you ever applied before? do you have a license?
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  #6  
Old 03-21-2014, 07:34 AM
neblawncare23 neblawncare23 is online now
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The spray rig consist of a pull type 300 gallon tank with 300ft electric hose real. All lawns are liquid fertilized. I already have a well established mowing business doing 40 accounts a week part time solo. I also currently have an areator and do approximately 20 lawns a year. I do have my chemical application license already, as I fertilize 25 of my mowing accounts. Im looking to buy this guys business and go full time.
So I was looking to see what you guys would pay for his business, just to give me a rough idea of what is fair.
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  #7  
Old 03-21-2014, 10:41 AM
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Efficiency Efficiency is offline
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Quote:
Originally Posted by TPendagast View Post

I'd offer him 10% of gross plus whatever is fair for his equipment.
You really don't know do you?

Even a small Co like this can go for 50 or 60 cents of every revenue dollar. Larger ones like mine can go for 110 easy or as high as 125.
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Old 03-21-2014, 11:19 AM
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TPendagast TPendagast is offline
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Join Date: May 2008
Location: Wasilla, AK
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Quote:
Originally Posted by neblawncare23 View Post
The spray rig consist of a pull type 300 gallon tank with 300ft electric hose real. All lawns are liquid fertilized. I already have a well established mowing business doing 40 accounts a week part time solo. I also currently have an areator and do approximately 20 lawns a year. I do have my chemical application license already, as I fertilize 25 of my mowing accounts. Im looking to buy this guys business and go full time.
So I was looking to see what you guys would pay for his business, just to give me a rough idea of what is fair.
Hmmm.

Liquid fert apps are ok… I wouldn't want to apply them from a hose like that.
Rather do that from measure nozzles on a boom and drive it…

But you said all your lawns were going to be close to 8k sq ft…

That's a lot of hose dragging
Are you planning on hiring a guy, or does this put you over the top as pure solo?
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  #9  
Old 03-21-2014, 11:36 AM
neblawncare23 neblawncare23 is online now
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Liquid fert is what everyone does around these parts for the most part. Grass in either blue grass or fescue. The dry programs just dont have enough iron in them to keep the grass green all summer long, or have the weed control in them to keep the dandelions away. I would hire a full time guy to work with me also.
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  #10  
Old 03-21-2014, 11:37 AM
neblawncare23 neblawncare23 is online now
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so efficency your saying you could be looking at spending 50k to buy this business?
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