Need some advice...selling the business

Discussion in 'General Industry Discussions' started by emil35, Sep 2, 2006.

  1. emil35

    emil35 LawnSite Member
    Posts: 213

    Hello:

    I'm looking to sell my lawn care business that I started over 8 years ago. To date, I have a full building of equipment, established accounts, and a soild rep in the community. I'm selling the business becasue I want to go to school full time and have found other, less expensive (in terms of equipment needed, man power, and time required) jobs that I can do while in school to keep a steady cash flow coming in for myself. Above all, as many of you know from your own businesses, I just don't want to deal with all the hassels while I'm in school (such as employees, repairs, etc.) I figure if it's still what I want to do later, there will always be grass that needs to be cut. Therefore, how should I go about selling my business? I'd like to sell it all out as one deal (equipment setup, accounts, extra equipment, etc.). Is there a special way to find the value of the account contracts when you're selling them? What about the equipment...just fair market price? I'd like to have the business sold by the spring of next year. I'm located in Colorado in a market area that has alot of potential. Let em know what you all think how I should go about the selling. Thanks!
     
  2. Poncho25

    Poncho25 LawnSite Senior Member
    Posts: 369

    Most people that I have found that sell their LCO is they sell it for the value of 2 to 3 months per account. and the value of the equiptment....
     
  3. lawnrich

    lawnrich LawnSite Member
    Posts: 112

    about 60 cents on the dollar for a years revanew ferts go higher mowers trucks thats all negotiable
     
  4. emil35

    emil35 LawnSite Member
    Posts: 213

    So if I was to sell the accounts for 50 cents on the dollar for a year's income...would that be a good deal for both sides? Does that work for contracted and non-contracted work? If not how is non-contracted work valued? I was thinking 1 month's income from those accounts. I was figuring market value for all equipment for I was planning on keeping some anyhow...my truck, some trailers, etc. but most will go. Thanks!
     

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