How do I sell my business?

Discussion in 'Business Operations' started by HandleyLandscaping, Mar 28, 2006.

  1. HandleyLandscaping

    HandleyLandscaping LawnSite Member
    Posts: 2

    Whay is the going rate for Landscaping maintenance jobs? I heard 3 times the monthly fee. Is it more, or less?
     
  2. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Why is that, it makes no sense? You mean to tell me that years in business, # of clients, # of employees, diversity of services, total revenue, net profit, equipment value, value of land/property, etc., etc., etc. don't play into the equation?

    Remind me not to call you in a couple of years when I sell out.:nono:
     
  3. HandleyLandscaping

    HandleyLandscaping LawnSite Member
    Posts: 2

    I'm only selling the jobs. Not equipment, etc.

     
  4. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Posts: 1,743

    3 months of revenue is what I have payed for the 3 companies we aquaried. Owner financing helps to!
     
  5. lawnservice

    lawnservice LawnSite Senior Member
    Posts: 589

    you might (most likely will) be very disappointed

    years in business? might have a value to you...but not a buyer

    # clients ...means nothing. I could run an ad tomorrow advertising "free lawn care" and have many many clients...that are worth nothing to a buyer

    # employees...again a value to you...not a prospective buyer. chances are many of your employees will be let go anyway

    equipment value...used equipment = very little value to a buyer

    land/real estate...sell it seperatley for the biggest return

    net profit is your only real value to a prospective buyer


    just my opinions
     
  6. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    I'm glad, cause you are sorely mistaken
     
  7. J&R

    J&R LawnSite Senior Member
    Posts: 835

    rod- You are right. If i sold my 25 year old co. With net return of over 80,000 per year. The price would be 3 times gross sales.
     
  8. mrusk

    mrusk LawnSite Gold Member
    Posts: 3,260


    Thats a good one!!!!! Lets say you were netting 20%, that means you were grossing 400k. You really expect some knuckle head to pay you 1.2million for your company???
     
  9. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    I find it a shame that too many members here think and talk like a "lawn boy" instead of business owners...perhaps I need a change of scenery. Or perhaps some don't understand the difference between buying accounts and buying a true turnkey op.
     
  10. 2 clowns mowing

    2 clowns mowing LawnSite Senior Member
    Posts: 566

    3 1/2 times the per works for us
     

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