buying a business.

Discussion in 'Business Operations' started by tnwildcat, Feb 4, 2012.

  1. tnwildcat

    tnwildcat LawnSite Member
    Posts: 58

    Everyone gets calls from time to time with someone getting out of the business or selling accounts. Does anyone have a direct simple formula for valuing accounts/business. Please respond if you have applied your formula. I would like to to know what worked and what busted.
     
  2. orangemower

    orangemower LawnSite Silver Member
    from pa
    Posts: 2,773

    I've read so many threads about this it's not even funny. Try doing a search.
     
  3. djagusch

    djagusch LawnSite Platinum Member
    from MN
    Posts: 4,237

    I hired an accountant for a evaluation on a biz. About $100 and is a much better indicator of value than anyone else.
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  4. fireman gus

    fireman gus LawnSite Senior Member
    Posts: 517

    Everyone has to make up their own mind on what to pay for an existing business - accounts and equipment. As stated earlier there has been numerous threads on this. Do some research and see what has been written in the past. There are hundreds of varied answers.
     
  5. andyslawncare

    andyslawncare LawnSite Senior Member
    Posts: 812

    I probably wouldn't pay any more than one or two months payment when buying accounts. I've never done it, but for the cost, I can advertise and sell my own accounts. I guess if you want a new full route, buying up routes is a good investment to gain faster growth and income.
     
  6. Wecutgrass

    Wecutgrass LawnSite Senior Member
    Posts: 660

    i think its worth one month. i was about to buy a company and the guy was asking 533 per lawn and i refused to pay that so i did not buy the company
     
  7. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    I think it varies from market to market. I think the buyer needs to figure, on average, what it cost him to gain an account in advertising cost. Doesn't this make the most sense? $533 might not be a bad price if the account brings in $1200 a year and on average it cost you $800 in advertising cost.
     

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