Help selling my business

Discussion in 'Business Operations' started by Outdoor Images, Oct 8, 2013.

  1. Outdoor Images

    Outdoor Images LawnSite Member
    Posts: 12

    Trying to sell my business in CT. Any thoughts on what to ask for? I gross 14k in monthly commercial money & another 20-25k monthly on residential mowing. Total gross is about 40k monthly income for only mowing. All landscape & hardscaping is additional. Last year I grossed 400k for the year. Any ideas would help. It totals to about 12 commercial accounts and 120 residential.
     
  2. Tyler259

    Tyler259 Banned
    Posts: 100

    Not sure but looks like you've built quite a nice business in 6 years according to your site. Are you going into a different industry?
     
  3. Outdoor Images

    Outdoor Images LawnSite Member
    Posts: 12

    Yes I am currently pursuing other careers. Something more 9-5, something all year. I have built up one of the larger landscape companies around here but it gets harder to turn a profit each year around here with under cutters and cheaper competetion. my bills, materials, and expenses keep going up and the lawn prices keep going down.
     
  4. Mikol87

    Mikol87 LawnSite Member
    from Iowa
    Posts: 93

    are you selling equipment, name, real-estate, etc? Are any customers on contract? Most banks wont loan money for buying your customers. They need collateral aka real-estate and equipment. I know a guy trying to sell his business right now and he grossed around $600,000 last year and his equipment appraised around $250,000. His main business was mowing, fertilizing, and snow removal. His asking price is $550,000. Most of his customers are not on contract so its risky.
     
  5. Outdoor Images

    Outdoor Images LawnSite Member
    Posts: 12

    all mine are under contract. All commercials are on year to year contracts or multi year deals. All residential are also on year to year contracts. Its not liable, if you stink they can still cancel. Its mainly for billing purposes. I have a great clientele but i find it harder to turn a profit these days and im known to be one of the higher end companies around here. I have no real estate but I do have equipment. 4 riders, 4 walks, a skid steer, 7 trucks, 4 trailers, and a bunch of other stuff. This year i will gross over 500k. My business is mainly mowing and snow removal and mulch
     
  6. Tyler259

    Tyler259 Banned
    Posts: 100

    Well if you decide post your equipment separately I'm sure some of us CT guys would be interested. Good luck in your ventures.
     
  7. Mikol87

    Mikol87 LawnSite Member
    from Iowa
    Posts: 93

    If I were in your shoes I'd list it for $450,000-$500,000. Start calling your higher-end competition and see if there interested.
     
  8. Tyler259

    Tyler259 Banned
    Posts: 100

    Will your profit margin drop even lower with that extra 100k in sales this year? Under 10%?

    Maybe you can start investing in rental properties or something a little more passive income once you sell your equipment and find a career. Just a thought.

    I would write down a list of your biggest competitors and send them an email regarding your equipment and accounts are for sale. Wouldn't waste time on craigslist ad for the accounts.

    What do you think your equipment is worth around 150k?
     
  9. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Posts: 1,520

    Word spreads fast when you talk about selling. People i dont know called and asked to buy our maintenance side. Even an employee asked. Problem is, when you are going to them, they hold the cards. When they come to you, you hold the cards. If you can show financial statements, fmv of assets plus 2-3 timea net income is a decent place to start. Really big transactions start getting into multiples of EBITDA but your gross sales dont get you in that league yet.
    Posted via Mobile Device
     
  10. Outdoor Images

    Outdoor Images LawnSite Member
    Posts: 12

    yea all good thoughts. I own a few rental properties now and I am looking to get into it more. I already manage all of my families real estate as well. My truck alone are worth about 180k and then equipment probably another 50k if that. then the rest of the money would be for acccounts. I would be comfortable in asking 450k and walk away to a new venture. I am losing my passion for landscaping every year that passes lol. all my accounts are under contract in writing so i dont think there is a big risk with buyers but buying a business is always a risk. what do you guys think
     

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