Opinions on value of Business

Discussion in 'Business Operations' started by Turfman999, Sep 8, 2007.

  1. Turfman999

    Turfman999 LawnSite Member
    Posts: 72

    I am looking for opinions on general base values for my business. I have a very loyal customer base that I have had for up to seven years. My records are excellent and show just about any service or revenue reports that would be needed. My accounts are a 80/20 mix of Res/Comm. My revenues are approx. 60% applications, 25% mowing and 15% Misc. (Mulch,Pruning and Aeration) The lawns are in very good shape considering the bad summer. I have been told that applications are worth dollar for dollar on annual revenues and that mowing is approx. 50 cents on the dollar. Does anyone have any different opinions or know weather the misc. revenues have a value? I am trying to come up with an overall price that I don't over price the company and where I don't give it away.

    Thank You in advance,

    Larry :usflag:
     
  2. The Cutting Edge

    The Cutting Edge LawnSite Member
    Posts: 141

    Just to give you an idea, I paid 24,000.00 for 40 residentail accounts under contract, 1992 Ford f250, 16' trailer, 60" exmark z, 52" exmark tt, 48" exmark tt, Blue bird areator, a bunch of stihl stuff and a bunch of tools. The revenue on the accounts is almost 9000.00 a month. I think you are right on the dolar for dollar on the apps, as for the mowing its about 1 months revenue and I am not sure on the misc. I hope this helps you in some way.. By the way are you planning on selling? If so let me know, I might be interested. Thanks Jesse with The Cutting Edge Landscaping and Lawn Care.
     
  3. turfsolutions

    turfsolutions LawnSite Senior Member
    Posts: 851

    Sounds like you got a great deal cutting edge. I hope to get a bit more for the years I have put into my business than that guy did.
     
  4. tinman

    tinman LawnSite Bronze Member
    from ga
    Posts: 1,348

    I know there is risk for the buyer with no contracts (most cases), but before I sold accounts for 1 month's gross I would just work for another month and then just quit before I gave them away.
    I think offerring to work with the new owner for a period of time to make sure the service remained the same would help keep clients on board with the new owner.
     

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