How much is your business worth?

Discussion in 'Lawn Mowing' started by Vassk1, Aug 31, 2005.

  1. Vassk1

    Vassk1 LawnSite Member
    Posts: 49

    There have been a few threads the last couple days asking what a business might be worth. There have been quite a few replies mostly saying the business is not worth much.

    My question is this; what do you think your business is worth? I am talking the whole operation...accounts, equipment, buildings...basically FF&E as well as the accounts.

    Thanks.
     
  2. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    I think my business is worth $100,000.00

    Thinkin' of selling............ Anyone interested? :)
     
  3. Vassk1

    Vassk1 LawnSite Member
    Posts: 49

    I would ask for more specifics but is that really any of our business?
     
  4. Brianslawn

    Brianslawn LawnSite Silver Member
    Posts: 2,004

    if you have to ask, you cant afford my biz
     
  5. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    Only if you were serious about buying...
     
  6. befnme

    befnme LawnSite Bronze Member
    Posts: 1,413

    100,000,000.00 easy,to me anyway.
     
  7. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    What people think its worth or what they can sell it for? Those are 2 different things entirely. To get an idea of what a business is worth takes an accountant and an attorney, the first needs to go over tax forms for the last 5 yrs. depreciation, capital expenditures, gross receipts etc. etc. Then an attorney need to go over the customer list and the contracts that they are under and find out if there are any loop holes and how many. Then you have the variables such as is the selling contractor willing to work with the buyer, is he willing to work with the customers to make a smooth transaction, is he willing to work with the vendors to insure that the new buyer still receives the discounts that an established company gets? Your question is to vague for a solid answer and an appropriate one would take time and a lot of effort to determine the actual value
     
  8. Vassk1

    Vassk1 LawnSite Member
    Posts: 49

    Actually I was just looking for a thrown out figure because I assume most people here aren't avidly trying to sell their business. I was just wondering what you all think yours is worth.

    Rule of thumb is 50% of gross revenue plus the replacement cost of equipment. This is what I have read in publications, it is by no means my personal feelings.

    Well thought out answer though.
     
  9. Brianslawn

    Brianslawn LawnSite Silver Member
    Posts: 2,004


    small biz adminastration (SBA) did evaluation based on ability to make money and gross to net ratio or somrthing like that, and couple other criteria. came back with some big numbers.
     
  10. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    Was this for a loan from the sba ? I never heard of them determining selling value of a business.
     

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