60 accounts what are they worth?

Discussion in 'Starting a Lawn Care Business' started by Greenguy1, Apr 29, 2008.

  1. Greenguy1

    Greenguy1 LawnSite Member
    Posts: 103

    I have had a landscaping and lawncare business for the past 21 years and want to sell the 60 + Lawncare accounts which Gross about $60K per year to an employee which has been with me for about 5 years. With it would go the 2 mid-life 60" Exmark zero's and 2 Stihl back packs, 2 trimmers, 1990 f-150 with 16' trailer. I want to sell on a land contract type deal. What is the business worth? $100K ?
     
  2. turbo5560

    turbo5560 LawnSite Senior Member
    Posts: 304

    i'd give you 10-15 plus whatever the equipment costs. i bought a biz last year that had 45 accounts and bought that for 5
     
  3. Superior L & L

    Superior L & L LawnSite Senior Member
    Posts: 567

    Market value for the equipement and two to three cuts on the accounts
    $12,000 for the equipement and based on a 28 week cutting season probably $6,000 for the accounts so somewhere in the 18-20,000 range plus interest on the loan



    Jmo
     
  4. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    I would agree with pretty much everything every one else said. I bought a company 2 or 3 years ago and I "bought" the accounts and 70% of the good accounts found other companies so I wasted my money. Luckily I only paid 4k and its made me that 10 times over since.
     
  5. J.A.G LAWNCARE

    J.A.G LAWNCARE LawnSite Senior Member
    Posts: 931

    if you get $100,000 let me know I will sell toooo
     
  6. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    You should be able to get more than $20,000. It is almost gauranteed that the employee of 5 years wont lose a single account, so he is alomost gauranteed the income it brings in.
     
  7. Ztwo

    Ztwo LawnSite Member
    Posts: 51

    I think the accounts are worth what you make off them in one month. I bought some accounts last year,and i gave the guy what the accounts paid in one months cut.
     
  8. Carolina Cuts

    Carolina Cuts LawnSite Bronze Member
    Posts: 1,152

    :laugh: if it were only that easy...

    I'd build a biz, sell a biz, build a biz, sell a biz... build, sell, build, sell, retire.:clapping:

    g'luck.
     
  9. Liendeni

    Liendeni LawnSite Member
    Posts: 218

    So basically you are asking the guy to work for nearly a year and half without a dime of profit just to recoup his money...and that is if all the accounts stay. I see alot of ads on craigslist by guys who want 100K plus for thier lawn care business that brings in $75K a year. Let me ask you this....how much advertisting do you think it would cost in order to obtain 60+ accounts???

    Breaking that down...your asking price is equal to each account being worth $1666.66 . Do you honestly think it would take over $1600 in advertising to obtain one single account? Point being, I think the asking price is extremely overpriced but don't feel bad....I see alot of guys asking the same prices for their accounts.
     
  10. Greenguy1

    Greenguy1 LawnSite Member
    Posts: 103

    This guy has been mowing theses lawns for the last 5 years, why would he loose accounts? you would have to really screw up to loose 70% of these. Probably the difference is our geographics, our customers like us and respect us,and are loyal to us, they stay with us even when a lowballer approaches them at 1/2 what we charge, I have always said my customers are the best and I think I am right, there is no advertising that will get you a customer base like I have, I think most of you are in another ball field, anyway this guy could make at least $3000 more per year including unemployment figuring conservatively, not including any new accounts he would get which would be all his. Here is my math... Insurance (how many say what's that?) $2000, Fuel $4000,Maint. $2000, Misc. incidentals $2000, close right? New equipment? why ? repair used and save BIG. Total expenses/year $10,000 $50,000 left, monthly payment based on 6 years with a little interest $1489.00 or $17,867/year, amount left $32,133, want a little part-time help? add another $8000 (high for part-time) amount left $24,133.... $6133.00 more than his employee wages, does anyone see any discrepancies in my figures that would consume that $6133? and remember he should get more accounts as well.
     

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