Selling a business

Discussion in 'Business Operations' started by Troy Landry, May 5, 2002.

  1. Troy Landry

    Troy Landry LawnSite Member
    Posts: 12

    I'm selling a lawn care application business. What are the accounts worth?
     
  2. John Allin

    John Allin LawnSite Bronze Member
    Posts: 1,489

    Whatever someone else is willing to pay for them.....
     
  3. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    Almost as bad as "I'm starting, what should I do?".

    ;)
     
  4. Russo

    Russo LawnSite Senior Member
    Posts: 287

    There are many ways to calculate this. The best thing to do is find a broker. Sort of like a real estate agent for businesses. Get some professional help if your busines has any value.

    Good Luck.
     
  5. greenngrow

    greenngrow LawnSite Senior Member
    Posts: 403

    Question????
    Are you selling only the accounts. Or you selling equipment and accounts.

    The accounts normally run .50 on the dollar. The equipment is another factor. It depends on how old and the condition.

    Good luck
     
  6. Dennis E.

    Dennis E. LawnSite Senior Member
    Posts: 349

    50 cents on the dollar is a good place to start. How long have you had the accounts? Commercial or residential? Or a mix?
    Equipment included? How old?
    On contracts?
    Don't give it away. I made that mistake years back. Stay away from brokers! They'll rape you. You should be able to find the info you need to sell without getting a broker involved.
    Take your time. It's your business.;)
     
  7. Kent Lawns

    Kent Lawns LawnSite Senior Member
    from Midwest
    Posts: 870

    Give us the info:

    How many accounts.
    What are the proximity to each other?
    Average length of time you've served these customers.
    Will the company name transfer?
    How much are you charging compared to your competition?(Cheap lawns are easy to get.)
    Will the current owned stay on board?
    Do they all receive full programs?
    etc., etc.




    50%-100% of the annual revenues are typical depending on the above factors.
     
  8. smburgess

    smburgess LawnSite Senior Member
    Posts: 469

    I'd say NOT MUCH. I've bought a few lawn maintenance companies, and the accounts themselves played little in the price or the decisions. Equipment is what sells the accounts.

    Good Luck....you may find someone willing to take a "chance".
     
  9. 50 cents

    Hey John I'll give 25 cent you give the other 25 cents and we can expand to WI.
     
  10. Phishook

    Phishook LawnSite Bronze Member
    Posts: 1,143

    I gave $1000 for 25 weekly mowing accounts grossing 37K/yr.

    not all stayed with me, but well worth it.

    I've heard 10-12 % annual gross income. pluss equipment.
     

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