buying a lawn business

Discussion in 'Starting a Lawn Care Business' started by CoreyD, Feb 21, 2007.

  1. CoreyD

    CoreyD LawnSite Member
    Posts: 207

    a guy my friend works for is selling his lawn equpitment plus 3 accounts 2 residential and a school where he cutts the football field and baseball field.... he is asking $7500

    I think it seems a bit high i dunno tho.... here is a list of the equiptment
    ZTR Exmark 48" i think between 1000 - 1500 hours
    16x7 Trailer
    Basic weed eater and a backpack blower and Edger

    dont have all the info from him..... but j/w if yall think...... ill get more info soon and repost on this thread
     
  2. CoreyD

    CoreyD LawnSite Member
    Posts: 207

    btw he gets about $500 a month off of each of the houses a month..... and im guessing somewhere around $800 - $1000 for the school... not sure bout the school tho
     
  3. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    Well, if he is charging you for the accounts you better find out.
     
  4. AJZ

    AJZ LawnSite Member
    from Tx.
    Posts: 12

    When selling a business, the owner usually looks to get 80% of annual revenue + the depreciated value of equip. In a well established business, where the revenue is very high and constant, they may ask a little more and a little less in the opposite situation.

    So do the math. What is the equip. value? What is the yearly revenue generated by the accounts? Has the owner told his accounts that their may be a change of ownership? If so, are they willing to give the new owner(s) a chance?

    IMO $7500 is a good asking price initially but it really depends on the other factors.
     

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