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determining how much to sell business for?

Discussion in 'Lawn Mowing' started by stephen424, Apr 20, 2011.

  1. stephen424

    stephen424 LawnSite Senior Member
    Posts: 730

    For those that have sold or have bought accounts from someone, how do you determine how much to sell your biz for. I may be headed back into engineering and don't really want to juggle two careers. If someone was intererested in buying my accounts, do I sell for 1 months gross? 2 months? 3??
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    THEGOLDPRO LawnSite Fanatic
    Posts: 5,223

    I refuse to buy accounts because there is no guarantee the customers will stay with the new guy.
  3. stephen424

    stephen424 LawnSite Senior Member
    Posts: 730

    Thanks for your input goldpro. This thread is for ppl who have bought or sold accounts tho.
    Posted via Mobile Device
  4. johnyredd99

    johnyredd99 LawnSite Member
    from gap,pa
    Posts: 163

    i have purchased accounts in the past. but would not pay more then 1 months gross. It is a very large gamble if the customer will stay w/ you or not. I have found that after purchasing that most customers were about to drop the previous person due to lack of quality.... but in all reallity an account is worth nothing. very easily you could underbid the current person by a couple bucks and explain his situation. bad morals and business i know but some people have it coming to them
  5. stephen424

    stephen424 LawnSite Senior Member
    Posts: 730

    I could see a snake doing that, but that's when a business deal becomes personal...and gets ugly.

    So one months gross!
    Posted via Mobile Device
  6. Golfpro21

    Golfpro21 LawnSite Senior Member
    Posts: 563

    if you can guarantee that the customer is going to stay with the new owner..then perhaps...otherwise I would not pay a cent....I would simply quote teh cleint for my work and show local work and references and perhaps get the account anyways
  7. A-Land

    A-Land LawnSite Senior Member
    Posts: 856

    It's really all about numbers. If you have a couple hundred accounts, under contract, crews, equipment, it's worth money. If you're just doing it on the side, it's "worth" money to you, but you shouldn't expect to get anything out of them.

    Honestly your best bet would be giving them to a friend who can handle them, and if you want to get back into the industry in the future, maybe you can get some of them back.
  8. stephen424

    stephen424 LawnSite Senior Member
    Posts: 730

    ppl like you are really clueless. like i'd actually drive someone like you around and show them the potential clients without having a signed/notarized "back stabber" agreement in place.

    i definately wouldn't take a random guy to all my properties and say "here's one i charge $50 for...here's one for $40"
  9. stephen424

    stephen424 LawnSite Senior Member
    Posts: 730

    PLEASE DON'T RESPOND IF YOU'VE NEVER SOLD NOR PURCHASED ACCOUNTS. we all have opinions whether we'd do it or not...i get that!!

    but i'm trying to get some knowledge from someone that's done it
  10. sgrenier24

    sgrenier24 LawnSite Member
    Posts: 69

    I was laid off about three years ago and bought out a local lco that was giving up the business to become a teacher. I bought the business for two months of gross plus all his equipment. It included 25 accounts and two exmark mowers, all shindaiwa trimmers, blowers etc and a descent trailer. He had 24 accounts that were not on contracts. I took a gamble and so far it has paid off. I still have the original 25 and have grown to almost 50 accounts with no advertising. All of my new accounts came from referrals of the original 25. If you handle the transition professionally and take pride in your work you should not have any problems. Just make sure you have he seller sign a no-compete clause in the deal or walk away.
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