Selling My Business Question Worth???

Discussion in 'Lawn Mowing' started by milo, Feb 6, 2006.

  1. milo

    milo LawnSite Bronze Member
    Posts: 1,246

    I Am Gonna Be Selling Alot Of My Business To Go Into Another Line Of Work. I Am In Allentown Pa Anyway, The Funny Thing Is What Are The Accounts Worth... Well I Have Had 2 Guys That Are Also On This Site Come Over To My House And They Are Like Well They Are Worth 4 To 6 Cuts And That Was It. They Read On Here Thats All Accounts Are Worth. So My Question To People Here That Hate The Lowballers And Say We Get No Respect Is. Why And How Could They Only Be Worth 4 To 6 Cuts?? People If We Want To Make Ourselfs Worth Something Why Do People On Here Say That??? Just Likw Read On Here You Would Be Better Off Hiring Someone Who Will Work For You And Run It Into The Ground And You Would Come Out Making Way More. This Is A Business Where It Is Really Easy To Start Up With Not Alot Of Money And So Many People Do. But If We Want It To Ever Be Worth Anything They Should Sell For A Nice $$$$ If We Sell. Look At Oil People. Gas Should Only Be Like $1.25 A Gallon But They Are Lining There Pockets Cause That Is What They Say Gas It Worth
     
  2. milo

    milo LawnSite Bronze Member
    Posts: 1,246

    Ok People Here Is A Example::::: A Guy Is Selling A Business, He Is Selling A 6 1/2 By 12 Trailer A Exmark Lazer Z 25hp 60inch With 100 Hours On It, Craftsman Push Mower, Echo Trimmer Echo Blower, And 20 Accounts That Are $25.00 A Cut... Ok Poeple Please Tell Me What This Is Worth In Your Opinon... I Just Want To See How Close We Are All And Look At It To Ways A Price You Would Want For This If It Were Yours And A Price You Would Pay For It If You Were Buying It.. Please Post Opinon's
     
  3. tjcezar

    tjcezar LawnSite Member
    from PA
    Posts: 237

    Where are most of your accounts and are they comm or residential? Are you selling contracted customers? I would say it depends on the type, size, length of time of these customers were with you, etc.. I am in the Reading area so I could be interested in these accounts. What did you think they were worth?
     
  4. tjcezar

    tjcezar LawnSite Member
    from PA
    Posts: 237

    Many people think they can sell their accounts without contracts, which you can but anyone buying that business is taking a big chance so I would pay very little. Now if I was buying a business that had customers on 3 year contracts that would be worth some $$ cause it is gauranteed.
     
  5. impactlandscaping

    impactlandscaping LawnSite Silver Member
    Posts: 2,332

    Milo, Unfortunately , most people don't value lawn mowing only contracts at any value. It's the 3-4 year multi item, full service accounts that add $$ to a resale value of a business. Years ago, a local kid going to college called me, and wanted to sell me his business..30 nice accounts, and one old Snapper walk Behind..that's it. He said to make an offer, so I did. I offered him $4K for everything..He wanted $30K, so no deal. There's nothing saying that the residential clients will or won't stay after the sale, either. Unless you have signed multi year contracts, and do personal introductions with the existing clients with the new account owners, there really is no value other than the equpiment. In the above case, I would say it would be worth around $ 9-10K on the high side. That's about $8k for equipment and $ 2K for accounts.And somewhere around $7-9K on the low side. This is just my opinion, and not a professional evaluation of the sale of your business, just what I feel it would be worht to me in my area.
     
  6. milo

    milo LawnSite Bronze Member
    Posts: 1,246

    I Will Sell Like 30 Accounts I Have Plus Whatever Equipment Someone Needs. I Am Gonna Keep Like 30 Accounts For Myself To Do For Extra Money. I Was Trying To Sell A 6 1/2 By 14 Trailer 2005, And Like 15 Accounts And Would Only By Charging For The One Commercial Account And Giving The 14 With That And I Wanted To Sell That For $5000.00. You Could Recover That Just From The One Commercial Account One A Season. And None Have Contracts Buy Have Been Cutting Them For 4 To 8 Years Now
     
  7. milo

    milo LawnSite Bronze Member
    Posts: 1,246

    Also Yes If I Sell I Am Willing To Work With The New Owner A Week Or 2 To Help Him Meet All The People And Tell Them I Am Selling Out. All The Accounts I Sell Will Not Be Lost If The New Owner Is Doing A Good Job And There Once A Week Or When Needed.
     
  8. grass_cuttin_fool

    grass_cuttin_fool LawnSite Gold Member
    Posts: 3,503

    I saw a thread today and they were saying 2 cuts on each property and thats it. Its hard to spend alot of money and not knowing what the customer will do. Personally I think they are worth more than 4-6 cuts, but I understand where CJ and Impact are coming from with no contract and no quarentee

    wayne
     
  9. tjcezar

    tjcezar LawnSite Member
    from PA
    Posts: 237

    quick example. A friend of mine bought a runnng business for $50000. Had a great customer base, etc. Couple months later business died off and come to find out the guy he bought it from was just running the same business from his house and actually keeping his customers cause they were originally loyal to him and were his contacts. Honestly with out contracts and especially in this case it is very scary. I am not saying you would be dishonest but what keeps the customers after they are bought?
     
  10. all ferris

    all ferris LawnSite Bronze Member
    Posts: 1,307

    milo, what do you think the value of an account is?
     

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