sale of the business

Discussion in 'Lawn Mowing' started by Qualey, Jul 13, 2003.

  1. Qualey

    Qualey LawnSite Member
    Posts: 144

    I have two different parties interested in purchasing different aspects of my landscaping business. One wants the commercal work and the snow removal equipment, the other wants the residential route, mowers and trailers, and possibly one truck. My problem is how to assign a value to the 2 sides? The equipment is all app. one year old. I have read several suggestions of each account being worth 2 months rate as a lump sum, but this may not work in my situation. It is a relatively small route, but all the homes are in expensive developments with many upsale opportunities throughout the season. The business makes money, and I am only selling to devote more time to my other business which is not as seasonally focused and has a far better overhead to profit ratio. I want to wrap this up as soon as possible. Both parties have signed non-competition statements and are eagerly awaiting a response from me in regards to price. Any ideas?

    Matt
     
  2. Qualey

    Qualey LawnSite Member
    Posts: 144

    Also, does a "blue book" for equipment exist? If so, does anybody have the web address?

    Thanks
    Matt
     
  3. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    I have heard 2-3 months pay for accounts, and for commercial mowers take off $1 per hour of use. I dont know if that is right, because you would have to get about 6000 hours out of a mower, and still be able to sell it for $1500, as the average cost is somewhere around $7500.
     

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