I'm in the market for your thoughts......

Discussion in 'Irrigation' started by turfed, Aug 25, 2010.

  1. turfed

    turfed LawnSite Member
    from MI
    Posts: 24

    One of my current customers contacts me and offers to sell his irrigation business to me. He's a desk jockey, and only runs the books for it. It's been around for a while, changed hands once or twice. Great customer base at 400+. The business currently only handles start-ups, service,and blow outs. I think because it's a one man show, and he's very busy those 8 months out of the year.

    I've done as less as possible with irrigation. But this has me tempted. Especially when the one man show comes with the business to train myself or an employee on what needs to be done. I had a meeting with these guys and saw a profit and loss statement, showing some nice profits. Gross sales are in the low 50's, and they are asking around 95k. Comes with truck, all inventory, tools, and customer base......Any thoughts?
     
  2. Wet_Boots

    Wet_Boots LawnSite Fanatic
    Posts: 46,966

    I'd be looking at the winterizing income, as that will be the consistent revenue stream.
     
  3. greenmonster304

    greenmonster304 LawnSite Gold Member
    Posts: 3,042

    seems high to me
     
  4. DanaMac

    DanaMac LawnSite Fanatic
    Posts: 13,156

    How long has he been in business? How much would you say the vehicle, tools, and inventory are worth? I'm thinking you can get it for less than 95k.
     
  5. turfed

    turfed LawnSite Member
    from MI
    Posts: 24

    All things i've been thinking about. The winterizing has to be done. Period. I did think it was a little high also. But what is high when the potential to pull work from a list of 400 strong is there? This owner has had it 6 years. The guy who started it had it 13 yrs. So over 20 years, this guy has been around. I'm waiting to get details on the equiptment lists. I know it's one service truck with cap and stocked with parts. This is a tough choice. We've been talking about doing it on a land contract.
     
  6. greenmonster304

    greenmonster304 LawnSite Gold Member
    Posts: 3,042

    The blow out money is the only thing you can count on. I worked for a guy that bought an irr biz that grossed 140 for 50
    Posted via Mobile Device
     
  7. DanaMac

    DanaMac LawnSite Fanatic
    Posts: 13,156

    BUT - what did it come with? Vehicles, tools, inventory, customers, employees?
    Some of you know I've been wanting to sell mine. I've made spread sheets with inventory, 3 vehicles, 3 compressors, hand tools, electronics. 1500+ customers, 2 employees. I'm not going into numbers for gross sales or what I want to sell it at. But I like this discussion. Also, my gross sales and profits are up quite a bit this year, so what I wanted last winter is probably higher now :)
     
  8. It's only worth what he can get for it. He can sit around for three years waiting for an offer or sell it to you for 25,000. Sadly a business never gets its real value. I would never plan to retire on the sell of your business nor would I start a biz thinking I could sell it for bigger bucks.

    millionaires aren't walking around looking for irrigation businesses to buy and the people who are interested don't have any savings.
     
  9. greenmonster304

    greenmonster304 LawnSite Gold Member
    Posts: 3,042

    It came with a list of 100 customers most were big properties, pipe puller, compressor, and a commitment by the old owner to work for one season.
    Posted via Mobile Device
     
  10. hoskm01

    hoskm01 LawnSite Fanatic
    Posts: 5,690

    95 on 50 seems high to me too, sight unseen. But what are the assets worth, is the 95 thousand dollar question.
     

Share This Page