Commercial Landscaping, Exit Multiple

Discussion in 'Starting a Lawn Care Business' started by tjb243, Jan 10, 2006.

  1. tjb243

    tjb243 LawnSite Member
    Posts: 3

    My intentions are to start a landscaping company focused on commercial accounts. I had a couple of questions that I was hoping people could help me with.

    What is the typical profit margin that a commercially focused landscaping company would operate at. Please keep in mind that a majority of the business would be maintenance business?

    What type of exit multiples do landscaping companies sell for? Whether based upon net income or gross sales is there a range in multiples that companies typically sell for.

    Is it an industry practice to get short to medium term contracts from clients. For example will clients give a company a three year contract?

    Thanks for your help on this>
     
  2. CLARK LAWN

    CLARK LAWN LawnSite Silver Member
    Posts: 2,526

    first of all if you are just starting out dont plan on getting to many comm. account. thats what everybody wants and just starting out with out a known name dont count on to much. now for your ? what do you mean by multiple exits? yes you can get three year contracts but rare most are for 1 year. most places want rebid every year to try to get a lower price
     

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