Leaving the Biz...ouch!

Discussion in 'General Industry Discussions' started by Jscapes, Aug 23, 2006.

  1. Jscapes

    Jscapes LawnSite Member
    Posts: 10

    Been in business 15 yrs. 20 maint. acc.Master Gardener,CLT,40yr. pond builder, installer for L. architects, full service Co,+ Snow Plow biz: 50 residential, 3.5 hrs. ave. plow time.70k sole prop. 1300hrs. billable.New hip hopefully in Nov., new back not far off. Ouch! Most customers 10yrs.+ and
    happy to pay what I charge-for life. How can I leave-how can I stay? Handicapped son/family caregiving make expansion impractical. I would like to maximize my 'sweat equity' and stay on as liason to my customers. Anyone have a solution or an idea of what my business is worth and how to legally transfer snow plow contracts etc. Equipment all functional at roughly 20k.
     
  2. boxsky

    boxsky LawnSite Member
    Posts: 178

    Call a business broker. A general rule is 1 to 5 times the cash flow. However it will vary with type of business. LCO is a personal thing to some and you can't guarantee customers will stay aboard nor the person buying it will know the business.

    My recommendations are:
    Call a broker, do not sign for a long contract because you will be stuck paying him if he doesn't sell in time or you will have to maintain all accts.
    or
    Hire an employee to do the work
    or
    Sell equipment, then talk to other LCO and try to sell accts. There will be non compete clauses and personally i was the buyer money would go into escrow for some guarantee returns to me.
     

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