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How much is my lawn care business worth?

Discussion in 'Business Operations' started by greenstatelc, Sep 14, 2011.

  1. greenstatelc

    greenstatelc LawnSite Member
    Posts: 4

    I am considering selling my lawn care business because I am burnt out. I started the business 14 years ago when I was 12. I currently have 93 weekly accounts I live in spokane washington so we get about 26 mows on average a year. All the lawns are in a three mile radius so the lawns that are the farthest away from each other it takes no longer than fifteen minutes.


    My average lawn price which includes sales tax is $25.44. So every week the business gross is $2742. I estimate the business will net $45000 after taxes and everything. It takes two guys 25 hrs to mow the lawns each week. that doesnt include dump trips or maintenance time or paper work time.

    I also have 30 snow throwing accounts. I bill out $700 every time it snows 2" or more and $850 if it snows 6" or more. last year I made around $5500. It takes two guys 6 hrs to complete the route.

    I also offer pruining, aerating, power raking, and cleanup for our clients. This year that made $8000.

    So this year $63000.


    36" Toro Proline HyDro Kawa (5years old but runs like a beast)
    2 26" exmarks ( both 3 years old) good shape
    1 26" exmark part mower.

    2 shidawa commercial trimmers one is 3 months old the other a year old
    1 echo commercial stick edger 2 yrs old

    1shidawa back pack blower 4 yrs old
    1 shidawa hand held comm. three months old
    1 Echo hand held blower 2 yrs old

    1 blue bird aerator ten yrs old runs good
    1 blue bird pwr raker 5 yrs old

    1 aerions 28" snow thrower 1 yr old
    1 single stage toro commercial thrower

    Nice 7 ft X 10 ft trailer. fully ready to go trimmer rack and signs. and front storage.

    93 Ford ranger with nice fully enclosed bed with signs. 4X4 dual cab. Runs good 210,000 miles. well maintained.


    full service website
    well recognisable logo
    phone.com account so the number on the signs can be used

    ANY advice or suggestions on how to value this setup would be appreciated. THanks for reading!
  2. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    Your equipment is worth about $10,000... truck, trailer, EVERYTHING, top price.

    That would mean your business is probably worth about... $10,000.

    You say you have revenue of $2700 / week, for 26 weeks. That's roughly $70,000 per year. At a 25% profit, you'd be netting around $17,500 but you say you will make $45,000 after all is said and done.

    At best, you MIGHT get $20,000.
  3. hackitdown

    hackitdown LawnSite Silver Member
    Posts: 2,505

    I tend to agree with LwnmwrMann22, a lawn business is worth the value of the equipment. But, you may also be able to sell the account list to a competitor. Or sell the business to your employee, have him pay you $500 per week for a year or something like that.
  4. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    On lawnsite the consensus will be that its worth the used value of the equipment.

    In the real world the accounts have a lot of value. Generally the range is 3 months to one years gross plus the equipment.
    Posted via Mobile Device
    Prairie moon likes this.
  5. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Posts: 5,362

    Is the service area inside Spokane valley borders? East of Havana street? Are all you accounts bagged, side discharged mulched or combination. Any additional fee for clipping haul off?

    What size properties or lawns for $25 per mow?
    Posted via Mobile Device
    Last edited: Sep 14, 2011
  6. joshman108

    joshman108 LawnSite Member
    Posts: 86

    All i know is that in my area, even if they dont gross over 80k, ive never seen a lawn business for sale for less than 50k.

    Which seems obscene to me, but maybe people are willing to pay for something thats already established.
  7. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    This year I'll gross just over $300k, 90% maintenance, 8% install, 2% irrigation. I've got about $200k in new(er) trucks, all equipment is '08 or newer and government and commercial contracts signed for multiple years. If someone were to tell me they would pay me they would pay me $375k, I wouldn't be able to sign the papers fast enough.
    Posted via Mobile Device
  8. dahammer

    dahammer LawnSite Member
    Posts: 227

    I've heard Dave Ramsey say numerous times that a business is generally worth 3 to 5 times it's average NET profit. The average being based on the last 3 or 4 years. The equipment would be extra. Seems about right to me assuming the accounts will transfer, but people are funny about that kind of thing sometimes.
    Posted via Mobile Device
  9. greenstatelc

    greenstatelc LawnSite Member
    Posts: 4

    No it is all on the northside of spokane
  10. greenstatelc

    greenstatelc LawnSite Member
    Posts: 4

    Where does 25% come from? We have income tax and sales tax and a number of overhead costs but the net profit far exceeds 25% with the limited drive time of this business ( it costs us $125 a week in gas and we are billing out $2700) It is more like 50-60% profit. I would even mow with the new owner for a month to get them off to the right track with the new owners.

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