Sell Lawn Service, So I Can Retire.

Discussion in 'Lawn Mowing' started by tootsmustang, Jan 25, 2006.

  1. tootsmustang

    tootsmustang LawnSite Member
    Posts: 3

    How does one come up with a price, to sell your lawn service company?
    Have been in business for 15 years. NEED HELP!!!!!!!:
     
  2. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,842

    There are companies who specialize in finding buyers for people like you who have established a business. Business brokers, I guess you call them. I get letters and flyers from them occasionally. Unfortunately, I didn't save any of them so I can't give you any names. But if you look hard enough, you'll find them. But I think these are often your best bet.

    Some very close friends of our family had an insurance business they had built up for about 15 years. One day a business broker contacted them and convinced them that they should really listen to what he had to say. They were reluctant, of course. They were happy owning their own business and had never thought of selling it. But the $3Mil they were offered changed their mind a bit. Now they are retired and living well.

    Not to say that our lawn care businesses are worth $3Mil. But they are worth something. And you can get more from a business broker like this who specializes in finding businesses for buyers, than you would probably ever get on your own.
     
  3. Carolina Cuts

    Carolina Cuts LawnSite Bronze Member
    Posts: 1,152

    I wonder that myself...

    just noticed in the newspaper the other day...
    LCO for sale... $35K-$40K annual profit...equipment... $70,000 firm. Can't quite figure out how he came up with that figure of $70K
     
  4. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    There are A&D (acquistion & diversture) companies who can help you.
     
  5. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    Do us a favor and call that LCO and find out the details. Make sure to come back and post your findings.

    Thanks,

    kc
     
  6. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    Give us the facts and I'm sure you will get someone that will put a price on it.

    What comes with your business? List all with condition/hrs. Land?

    Customer base- are they under contract? How long have they been a customer?

    Gross grass sales?
    Gross maintenance sales?(pruning,spring/fall clean-ups etc...)
    Net landscape sales? Include yearly mulching.

    kc
     
  7. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,842

    Here's one case I know of...

    A local LCO sold out to TGCL last year. I went to his equipment liquidation sale and talked with him at length about the deal. They purchased only his accounts - they weren't interested in his equipment. He had about 50 or so accounts, mostly residential but a few commercial accounts.

    They paid him $45K and offered to hire him as an accounts manager to continue managing the accounts. Not as a worker, but as a customer relations manager and crew supervisor. This job paid around $40K per year. He took them up on it and still works there now as far as I know.
     
  8. Mr.Mow-It-All

    Mr.Mow-It-All LawnSite Senior Member
    Posts: 506

    Well that doesn't make much sense, am I missing something. If he is only taking care of the accounts he sold them, but not doing the work, then they are loosing money.

    Paid him 45k plus
    paying him 40k per year plus
    paying employees to service those extra yards (guess 15-20k per year)

    That doesn't make much sense as to why they would pay him for that???????:confused:

    :confused: :confused: :confused:
     
  9. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    if makes perfect sense...

    1. they make $$$ on maint and fert
    2. they just got rid on another competitor
     
  10. Jpocket

    Jpocket LawnSite Silver Member
    Posts: 2,278

    That's a SLAMMIN deal for him, $45,000 to invest or put in his pocket, and an easy sesonal job that pays 40k with out the headaches of owning them.:blob1:
     

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