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If I were to sell, what's the ballpark value?

Discussion in 'Business Operations' started by dmk395, Jan 24, 2013.

  1. Will P.C.

    Will P.C. LawnSite Senior Member
    Posts: 966

    I was just throwing out a number since there are major details we don't know
    He has 60k in equipment/trucks and I assume he has done a significant amount of research to come up with the 60k. Without the equipment his business isn't worth much. He is selling a job instead of a business. If everything was on the up and up (records, route, taxes, etc), I would probably offer 80k
     
  2. jsslawncare

    jsslawncare LawnSite Bronze Member
    Posts: 1,674

    I'm guessing ---$4.89 + you buying them lunch. (No I don't know.)
     
  3. dmk395

    dmk395 LawnSite Senior Member
    from Ma
    Posts: 992

    All the equipment is newer, and in good shape. Business consists of about 60% mowing, the rest is other maintenance, with about 20 solid application accounts. This does not include snow. I actually don't do snow, (rare around here because I travel a lot during winters). The snow would be an easy add on.
    How does one go about selling a co?
     
  4. jsslawncare

    jsslawncare LawnSite Bronze Member
    Posts: 1,674

    How is snow an easy add on if its rare?
     
  5. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,715

    He meant it's rare for a company not to do snow removal in his area. He doesn't do it because he travels in the winter.
     
  6. dmk395

    dmk395 LawnSite Senior Member
    from Ma
    Posts: 992

    If I added snow, my sales jump up significantly
     
  7. jbell36

    jbell36 LawnSite Bronze Member
    from KANSAS
    Posts: 1,258

    i'm very interested to hear what others have to say, especially ones that have been through it before...

    there is no definite answer or formula...mostly depends on the buyer...if you asked 200k, you might have a shot if you found the right person, but most people aren't going to be willing to pay over 100k...unfortunately snow removal can't be included because it's simply not a part of the business, it should be considered as a perk

    i would take your best month during the growing season which includes mowing, chemical apps, etc, and add it to the true value of your equipment...i would say this is a good value...like i said, mowing usually goes for 4-6 cuts...i feel like my business is worth well over that so i would definitely ask for more around my gross sales...
     
  8. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,715

    This is where deals fall through. I emailed a company who was looking to sell out about purchasing their business. I was primarily interested in their accounts list as their equipment was all dated. I told them I would give them one months gross for the accounts (25 lawns,) he told me he was insulted with my offer and said the accounts were worth 100k :hammerhead:. Like the saying goes, "there's an A$$ for every seat" in the end a business is worth what someone will pay for it.
     
  9. jbell36

    jbell36 LawnSite Bronze Member
    from KANSAS
    Posts: 1,258

    exactly...in other industries businesses go for 3-5 times the gross sales...in our industry, that is simply not the case...i don't think ive ever heard of a lawn company going for over 1 sales annual gross...

    personally, i would be willing to pay a little more (in general) if i knew it was a great company, or if it was my main competition
     
  10. clydebusa

    clydebusa LawnSite Bronze Member
    Posts: 1,660

    With no contracts to speak of, and minus the equipment I would say 40k.
     

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