Need help with selling business!!!

Discussion in 'Lawn Mowing' started by s&wlawncare, Aug 28, 2006.

  1. s&wlawncare

    s&wlawncare LawnSite Member
    Posts: 66

    Ok here's the deal. I have about 65 accounts, 90% residential but no contracts. But I have had most of these accounts for 3+ years. I am trying to figure out a good selling price for these yards plus my equipment. The yards generate an average of $1650 a week during april thru november. I have a 95 ext cab chevy 1500 v8 truck (pretty good condition) with 143000 miles new trans runs great. I also have a 16x6.5 ft trailor wood btm 2002 model, a 2002 walker 48" 20 hp with 1000 hrs runs great, a 2003 exmark 52" 20 hp with 350 hrs runs great, a snapper pushmower $500 new last year runs great, a redmax 8000 blower 1.5 yrs old runs great, a stihl br340 blower about 3 yrs old runs great, 2 stihl trimmers a fs110(2yrs old) and fs80(brand new), A stihl edger (the fs85 curve shaft brand new), stihl hs45 hedge trimmers run great, and a stihl farm boss saw. I know that not having contracts is a downfall but as long as the person keeps maintaining the accounts properly these would be a goldmine (no fighting for like commercial properties) and pretty much a guarantee to have them year after year. The only reason for selling is that i am in school at auburn and am having a hard time kepping my crew going while i am away. PLEASE HELP!!!
  2. s&wlawncare

    s&wlawncare LawnSite Member
    Posts: 66

    here is a pic of the trailor and mowers

  3. s&wlawncare

    s&wlawncare LawnSite Member
    Posts: 66

    i couldnt get the whole truck to upload so here is two halves


  4. s&wlawncare

    s&wlawncare LawnSite Member
    Posts: 66

    Oh and i almost forgot i also have a redmax 260 trimmer bought last year that goes to!
  5. Surf'n'Turf

    Surf'n'Turf LawnSite Senior Member
    Posts: 326

    May want to try utilizing a biz broker or getting on internet listings such as this:
  6. Evergreenpros

    Evergreenpros LawnSite Bronze Member
    Posts: 1,155

    A little math comes to about $57k a year in revenue from mowing?

    Usually accounts that aren't under contract are less than those under contract but accounts with a good history (years of service) are worth more than those without. That being said, if you're just selling accounts it's 10-20% of yearly revenue. Towards 20% if accounts are under contract and/or have a good history.

    But I'm just not seeing money here from what you presented. 57k a year with 2 employees? (guessing on the # of employees) plus expenses? If there is one employee there would be some. So you probably won't be able to sell it on net income or a multiple of net income.

    Since it appears you have to sell quickly, it will most likely depress the price even further coupled with the fact the season is coming to a close.

    I'd figure book value on the equipment, or a good guess plus 15% of accounts as a starting point. 20k for equipment? and 12k for accounts for about a 32k total. Maybe go as low as 28k?

    Might also be a good idea to finance part or all of it yourself, really opens up the # of potential buyers. If one of the employee's is doing it him/herself already, they might be a good option. Just get a lawyer to draw up the specifics so you have some recourse if they default.

    30k at 8% is a tad over $600 per month for 5 years. A nice chunk of change for you. $7200 payments on a business that generates at least $57k a year isn't bad. Cheaper than starting it from scratch by quite a bit since it's already generating an income. For a 10 year loan it's $364 a month.
  7. s&wlawncare

    s&wlawncare LawnSite Member
    Posts: 66

    Thank you for that help i was thinking in somewhere in that range. Anyone else know anything?
  8. s&wlawncare

    s&wlawncare LawnSite Member
    Posts: 66

    does anyone know someone who sold a business similar to mine, and how much they sold it for?
  9. Randy J

    Randy J LawnSite Bronze Member
    Posts: 1,124

    What about some kind of profit sharing deal with your current employee? He knows the customers and business. And that would give him an incentive to work hard while he's "buying" from you.
  10. Cracker Station

    Cracker Station LawnSite Member
    Posts: 66

    hhhmmmm.......letmeeseee...65 accounts at 1650.00 a week with some commercial...........comes out to $25.oo and small change each if ALL are weekly cuts. Sorry, was just thinking out loud.

Share This Page