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Does a company that only landscapes have any real value?

Discussion in 'Landscape Architecture and Design' started by drsogr, May 1, 2006.

  1. drsogr

    drsogr LawnSite Bronze Member
    Posts: 1,275

    I was curious if I was to sell my business...would it have any real value? I only do landscaping..so I have no regular customers. I am selling an image...and some paperwork?!

    The business isn't for sale..I was just curious if I ever sold it.
  2. gorknoids

    gorknoids LawnSite Senior Member
    Posts: 316

    You can't put a price on things like taste, work ethic, imagination and interest. You can sell the drafting table and the rest of the stuff at market value and you can take a teaching position, but damned if you can sell your personality when you're done using it. Maybe that whole Zen thing has some merit after all.
  3. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    Yes it has value, Its a name and if you worked hard its a good name with good employees. They have the experience that you taught and the quality workmanship should never miss a beat. Look at it this way, can your foremen & employees run the company with out you being there and make money? If yes then the company has value and the longer its been around the more value it has providing it has done quality work with satified customers.

    If your solo, then no. Only the value of the equipment
  4. JJLandscapes

    JJLandscapes LawnSite Senior Member
    Posts: 682

    Remember if you find some one stupid enough to buy... what happens if they ruin your name and do terrible work can you live with that?

    someone i know sold a maintenance and install route to some guy... he did terrible work and the guy bought his company back somehow because he was ruining the companys image that he created by losing most of the customers but he got them all back probably calling them all up personally and explaining what happened
  5. drsogr

    drsogr LawnSite Bronze Member
    Posts: 1,275

    Well if you sold the company....why would it matter what happens to the image? You don't own the image anymore?
  6. AL Inc

    AL Inc LawnSite Bronze Member
    Posts: 1,218

    Like Mac said, if it was more of a "turn-key" operation that someone could step into and keep running, I would say it definitely would have a value beyond just the trucks and equipment.
  7. MarcusLndscp

    MarcusLndscp LawnSite Senior Member
    Posts: 634

    There's not much value in a landscape construction business other than your equipment. The real value is in a company with large maintenance contracts. You may have 6 months of construction to do but that has little value compared to a company with multiple 3 year maintenace contracts under them. That's what adds value to a business you're selling, not 3 weeks of plantings at Mrs. Jones house
  8. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    TG/CL- fert apps are 1 yr or less contracts, does that company hold no value?
  9. allinearth

    allinearth LawnSite Senior Member
    Posts: 609

    Does that mean a retail merchandise store holds no value because customers have no contracts? Many of my install customers call year after year with new projects or improvements or they buy new houses etc.
  10. MarcusLndscp

    MarcusLndscp LawnSite Senior Member
    Posts: 634

    Do your customers sign a contract with you guaranteeing that they will do an improvement on their property each year and have you do it??? I doubt it. I'm not saying a landscape company has no value but doesn't a company with 3 year contracts on paper sound a little more financially stable than saying "well we always book x amount of months of work in construction every year. We're not sure who we're working for next year but we always have steady work." The maintenance is your guaranteed work for x number of years and you know you'll collect x amount of dollars every year from them no ifs, ands, ors, or buts about it. Maintenance is also work you know will always be in demand but construction is something that changes quite a bit with the market. Some years are better than others for the people in this country and in the down years I can almost guarantee you one of the first things cut from someones budget is that new walkway or planting they want. I know guys who have sold construction businesses before and they have some value but not as much....believe me.

    Also some people may have only one year contracts but we always operate with 3 year contracts on everything from plowing, mulching, fertilizing, liming, edging, mowing, pruning, etc etc....everything included in property management.

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