Questions about selling my business

Discussion in 'General Industry Discussions' started by shortcutlawn, Mar 9, 2011.

  1. shortcutlawn

    shortcutlawn LawnSite Member
    Posts: 6

    Hello all,

    Any input here would be greatly appreciated.

    I am in the Kansas City area and am planning to sell my Commercial / Residential lawn care business this year.

    I have 25 weekly mowing accounts and about 8 of those I have a full fertilizer and pesticide treatment program. I'm trying to put a price tag on my business to sell my accounts. I also have 2 Wright standers, one a 48" and one a 52", and also a 36" John Deere walk behind. I'm not too worried about including my equipment because I might be able to unload them for more separately.

    Last year I grossed around $27,000 for all that work, not including some landscaping jobs that obviously I can't include with the selling price.

    I guess my big question is what Percentage of that can I sell this for, and what would be the likelihood of convincing the buyer to purchase un-contracted yards?


    Thanks!!
     
  2. ncknaklawns

    ncknaklawns LawnSite Senior Member
    from NY
    Posts: 379

    If I wanted an easy way and looked at them and thought about 20 might come through, I'd give you $1000 the first year if they (all 20) signed up. That is assuming they were 1/4-1/3 acre jobs. If they were larger, more. So maybe $170 per acre for the season. But would have to see how technical they were. If they signed up the following year I'd give you half the first year. and the third year half the second.
     
  3. kilgoja

    kilgoja LawnSite Senior Member
    Posts: 944

    you should've made more money than that especially if you do fert and pesticide...how big are the yards?....if i did 25 weekly yards mowing only i would easily make $30k doing it for 6 months out of the year...must be small yards
     
  4. ashgrove landscaping

    ashgrove landscaping LawnSite Gold Member
    Posts: 3,457

    $15000 for everything. Mowers, trailer, trimmers and informed customers about the sale plus a paid week of working with you to meet the customers/get to know and see the properties.
     
  5. shortcutlawn

    shortcutlawn LawnSite Member
    Posts: 6

    Thanks for the replies,

    I'm projecting somewhere around %50-%60 of my annual sales just for the business. If my equipment were included I would price that out per piece and maybe give a decent price break on that just to unload all mowers at once.

    Am I fair with that? And does anyone know ways to market besides craigslist?
     
  6. Mountain Peak

    Mountain Peak LawnSite Member
    Posts: 203

    If I were going to buy your business I would be looking to pay one to one and a half months gross revenue for the accounts plus the equipment. The one to one and a half months revenue would be dependent on the quality of the accounts.
     

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