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How to make my accounts worth money, to prepare for sale?

Discussion in 'Lawn Mowing' started by mrusk, Jan 31, 2006.

  1. mrusk

    mrusk LawnSite Gold Member
    Posts: 3,260

    Alright guys. End of the year i am moving out of NJ so i am going to sell all my lawn accounts and equipment. How do i make my accounts more valuable?
    Right now i have no contracts or service agreements. I plan on getting every customer to sign one this year. But what should i have in it to make the accounts easier to sell?

    I know we all say on here accounts are only worth 6 weeks gross tops. However i see people selling accounts for alot more then that. Ofcourse i want to sell the accounts for as much $ as i can.

    What advice can you give me?
  2. YGWBill

    YGWBill LawnSite Member
    Posts: 45

    i know i guy that just sold his accounts for 25.00 each
  3. jpmako

    jpmako LawnSite Senior Member
    Posts: 593

    Where In NJ?
    I might be interested.
    PM me the details.

  4. Birdjr

    Birdjr LawnSite Senior Member
    from nnj
    Posts: 451

  5. milo

    milo LawnSite Bronze Member
    Posts: 1,259

    i am going to be selling like 15 accounts that will not have time to do this season.. i think i will sell just the accounts for $4000.00 that is like paying for 1 big comm. job for a season and then throwing in 14 others with it. jobs only all take like 8 hours to do all with driving.. they are in allentown bethlehem PA anyone like to buy them. also could add some equipment to this to if needed
  6. premierlawncare

    premierlawncare LawnSite Member
    Posts: 91

    Around here Lawn businesses sell for about 2 months gross to 6 months gross. It also depends if you are selling the whole business or just some stray accounts. Also add for equipment, trailer, truck etc.

    I see alot of guys on here saying lawn accounts aren't worth anything, but this is not true.

    Most guys who say that don't have money to buy out other businesses and never have.

    You have to remember 2 things:

    1. When someone buys accounts or a business in general, they are buying an INCOME (which everyone needs) or a head start into the business.

    2. Lawn businesses who sell their businesses too low are LOW BALLING just the same as LOW BALLERS who service accounts for a too low of price. Basically they are KEEPING THE MARKET PRICE DOWN for when you sell your company/business. (let that sink in)

    I have learned that there is a retail price and a wholesale price for accounts. You want to try to sell your accounts for retail. and buy accounts wholesale.

    I think 6 months gross is around retail price and 2 months gross or less is wholesale.

    OH BY THE WAY, down here, people buy lawn , pool, and other businesses all they time. I see some listed for very high prices up near a MILLION DOLLARS.

    One quick story, I just talked to a guy who just bought a lawn biz for more than $200,000. Thats right $200,000 +++. . He just got out of the corporate world and needs a........ high income!!!. Remember everyone needs income.

    Oh, selling accounts for $25, I will take some of those, LOL. As long as the monthly rate is right I'll buy those all day long.

    Another way to look at is what is the replacement cost of the account and business. How much time (which is $$$) and money (more$$$) would it take to advertise, go bid, and get 1 account.
  7. YGWBill

    YGWBill LawnSite Member
    Posts: 45

    with no contracts the accounts are not worth a lot.
  8. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    I don't think there is anything you can do to "increase" their worth, they are worth what their worth. I just bought a company and I paid 1 months revenue for them.
  9. daveintoledo

    daveintoledo LawnSite Silver Member
    Posts: 2,587

    no sale.... and even with contracts, thats no guarantee they will stay with the new LCO...besides, when you are gone someone can just aggressivly market in that area anyway.... and they still get the accounts without paying for them...
  10. premierlawncare

    premierlawncare LawnSite Member
    Posts: 91

    Dont listen to negative. List your business with a business broker.

    1month biz doesnt even make sense. You could train a worker and make more than 1 month running it in the ground , unsupervising it. If your worker lasts more than 2 or 3 months than you are at a break even if you sold it for 1 month gross.

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