Buying a lawn and snow buisness

Discussion in 'Starting a Lawn Care Business' started by Nickduro, Jan 6, 2014.

  1. Nickduro

    Nickduro LawnSite Member
    Posts: 11

    Hey guys I'm new to the site here and was hoping I could get some feed back on buying this company and what it's worth. It's a lawn and snow removal and some landscape, it has roughly 65k worth of equip. And generates around 13k/month 12 months a year all 1-2 year contracts with a handful of employees. Im familiar with snow removal aspect of it and know what that's worth but as a combined buisness. So any input about what it's worth would be vary helpful thanks a lot .
     
  2. hydemow

    hydemow LawnSite Member
    Posts: 85

    For lawn care do any of the current employees have any certifications like for fertilizer or irrigation. What type of accounts and how much time is left on the contracts?
     
  3. A. W. Landscapers  Inc.

    A. W. Landscapers Inc. LawnSite Bronze Member
    Posts: 1,287

    In order to make an educated guess as to the value of the business you are considering purchasing, we would need to examine their books for at least the last 5 years of business.
     
  4. KS_Grasscutter

    KS_Grasscutter LawnSite Gold Member
    Posts: 3,331

    Why does it take a handful of employees to generate 13k a month?
    Posted via Mobile Device
     
  5. windflower

    windflower LawnSite Bronze Member
    Posts: 1,079

    Value would depend on the net income the business is throwing off. Sounded like generating 13k a month was gross. With a handful of employees it doesn't sound very profitable to me. Need more detailed info to make an accurate assessment.
     
  6. Nickduro

    Nickduro LawnSite Member
    Posts: 11

    He has 2 semi part time guys 1 of them is certified in fert and tree services and 2 on call guys for snow removal. Most contracts are town homes,condos and a few church's. 4 of the contracts have a year left on them and the rest expire this spring. I went over all of his books from the past 5 years and the company has been generating on average 22k per year more in revenue and now is up to around the 200k mark for this season. For what he is asking seems a lot to me so any input would be nice thanks Guys.
     
  7. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,716

    13k x 12 = 156k?

    Not quite 200k

    What is semi part time?

    Any company with five employees plus the owner should be well over those numbers.
    Posted via Mobile Device
     
  8. A. W. Landscapers  Inc.

    A. W. Landscapers Inc. LawnSite Bronze Member
    Posts: 1,287

    What about profit?
    How much is the owner paying himself?
     
  9. Nickduro

    Nickduro LawnSite Member
    Posts: 11

    He also has quite a few per time accounts that range from $150 to $400 and in the mowing season he does landscaping for the condos and town homes as they are always doing something new to Improve the estates that is all included in that 200k. The 2 semi guys are doing the lawn care when the owner is not able to be on site to help out and winter they are as needed when snow comes along with the other 2 guys, which to me that's the way lawn and snow goes. The owner lives off the buisness which he pays for everything with the company's money to show his loss and not have to pay into taxes a lot. He estimates he pulled around 60k this season for his own expenses.
     
  10. CowboysLawnCareDelaware

    CowboysLawnCareDelaware LawnSite Senior Member
    from DE
    Posts: 555

    So your really only buying the business with equipment and the Four contracts that still have a year left on them. The other contracts are totally up in the air. Maybe I missed it but what was he asking for the company with the equipment?

    -Michael
     

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