Need some expert opinions

Discussion in 'Lawn Mowing' started by newbeginnings, Aug 31, 2005.

  1. newbeginnings

    newbeginnings LawnSite Member
    Posts: 5

    Need some advise! We are looking at purchasing a lawn care business and cannot afford an expert appraisal as to the value of the business. I am instead looking for the opinions of all you seasoned professionals.

    The business includes:

    11 lawns @ monthly income of $ 1430.00 (No contracts but all clients willing to transfer)
    2004 48" Husqvarna Fixed Deck Walk Behind with 1400 hours
    1 - Stihl Trimmer (Poor condition)

    The business is located in Central New Jersey (Hunterdon County).

    Any opinions as to a fair market value of the business would be GREATLY appreciated!

  2. KenH

    KenH LawnSite Bronze Member
    from CT
    Posts: 1,622

    With a written contract from the 11, around 3k. Without the contract, then the value of the mower. Even though they SAY they will carry over, there is no guarantee.
  3. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    10% of a months rev. + the cost of the mower. $1k tops for everything
  4. Vassk1

    Vassk1 LawnSite Member
    Posts: 49

    If this person was smart, they would list it with a broker and ask for 50% of yearly revenues plus equipment. They might get 25% but at least it is more than these people would pay.

    It makes me laugh how each of you own a lawn company and when it comes time to buy another lawn company you price it at almost nothing. So this means when it is time for you to sell, you will get almost nothing. That must be reassuring to those who rely on the sale of their company for retirement purposes.
  5. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    Read the original post! There not under contract which means they can quit today if they want. Makes there value worth only what someones willing to pay. And in my case it would be 1 mow, guy asked a question and I gave my answer.
    When it come time for me to sell i'll be selling a client list with the customers under contract for the entire season and with it stated in the contract that I have the right to sell and the contract will still be binding. So you laugh all you want but theres a differnce in how to run a business and if your busy laughing you sure won't learn the right or wrong way of running one. Good luck in the future. :dizzy:
  6. Vassk1

    Vassk1 LawnSite Member
    Posts: 49

    Also stated in first post was all customers willing to transfer meaning none will be surprised if business is sold. All long as you do good work 90% will stay, am I correct?

    I think it's great that all your cumstomers are under contract but how many owners can actually say that. Will you be including the list of the competitors 500 clients for the new owner to steal as well? I'm sure that will add to the selling price too! But seriously, if the new owner does a **** job then the contracts really don't mean diddly. Of course it won't be your problem anymore either, assuming you're not holding a note for part of the selling price. You aren't even selling now so this is just conjecture anyways.
  7. 6'7 330

    6'7 330 LawnSite Bronze Member
    Posts: 1,823

    11 accounts, no contracts, a trimmer in poor condition, mower with 1400 hours.

    Value of so-called business... 500 for pos mower and trimmer .50 % of a monthÂ’s revenue 715.00, the whole ball of wax 1200 tops.
  8. Remsen1

    Remsen1 LawnSite Bronze Member
    Posts: 1,020

    $1430 in revenues = ? profit ?

    $1, $2, $1000. How long does it take him to do his entire route? Add 10-20% BS factor.
  9. TheKingNJ

    TheKingNJ LawnSite Senior Member
    Posts: 781

    I'd say 3k with contracts for all accounts. subtract the price of 3 cuts for every lawn you can not get a contract on.
  10. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    LMAO -- Your not even in the biz, your looking to buy into it. You are correct in everything you said. Now I'm sure there are plenty of people that will sell you a customer list of people or I should say there biz. You pay exactly what they want because if you do a good job all the customers will stay with you, never had a customer lie about that before :dizzy:

    ANY of the guys that do more than just grass cutting have contracts for there customers. They take the business seriously and know that they need contracts to be certain of income each month and also have a way to collect it if someone refuse to pay. This ain't a bar where you can run a tab and pay when you can. You might want to be sure of what your paying for before your big career move

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