business worth ?

Discussion in 'Lawn Mowing' started by goose68, Jun 18, 2004.

  1. goose68

    goose68 LawnSite Member
    Posts: 3

    I have been the business for five years and have a well established customer base. My customer base consist of 25 lawns with a income of $900.00 a week. My labor is only about 18 hours a week. I have several people who are very interested in my business that I have established. I have considered selling the customer base and equipment. How would I begin to put a price on what I have built from ground up. Any help will be grateful.

    Thank you,
    Goose 68 :eek:
     
  2. Acute Cut

    Acute Cut LawnSite Senior Member
    Posts: 980

    usually, you can sell your customers for one months gross up to 1.5 of that gross. Equip varies. just what i have seen, not saying it is right though.
     
  3. gr8cutter

    gr8cutter LawnSite Member
    Posts: 91

    I just priced 3 Lawn care companies. They were all about 2 months gross with an option on equipment. I would think this would change based on the time of year they are selling.
     
  4. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    AT LEAQST ONE YEAR GROSS WITH GUARENTEE PLUS EQUIPMENT
     
  5. Acute Cut

    Acute Cut LawnSite Senior Member
    Posts: 980

    LOL! ONE YEARS GROSS!?!?! :laugh: :laugh: :laugh: :laugh:

    I have never heard of such a thing! That is like getting a zero turn mower for 500$ new. So you expect someone to pay you one years GROSS? That means that they lose money no matter what. Gross is before taxes. So you are going to pay that? I'll sell mine for that amount! That is both absurd and outragous!
     
  6. bobby perez

    bobby perez LawnSite Member
    Posts: 86

    what exactly do you mean 2 months gross or 1 year gross . Whatever you make a year in the business is what you sell it for ?Please break it down for me cause I'm interested.Thanks
     
  7. Avery

    Avery LawnSite Bronze Member
    Posts: 1,389

    What equipment do you have? 25 residential accounts are worth next to nothing.
     
  8. goose68

    goose68 LawnSite Member
    Posts: 3

    I run toro z mowers ,yes they are residential accounts with 1 commercial account .I know what my equipment is worth but don't know what to charge for my customer base . I had 1 person tell me 1.5 that i get for each mow but that seems pretty cheap to me. Thanks
     
  9. Acute Cut

    Acute Cut LawnSite Senior Member
    Posts: 980

    Add up what you take in for one whole month. Then multiply that by 1.5 (or as market dictates). Your dealer may be able to help you. Or you can try and grow the business and then hire a broker. They tend to get top dollar for your busniess.

    Gross is your total monthly income before any expenses.
     
  10. fga

    fga LawnSite Silver Member
    Posts: 2,449

    here, i've heard it's 3 or 4 months worth. not including equipment.
     

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