selling part of company, anyone w/ experience

Discussion in 'Hardscaping' started by csl, Jan 14, 2008.

  1. csl

    csl LawnSite Member
    Posts: 235

    i am posting this in multiple places just so i can get optimal exposure. we are looking to sell part of one of our companies, and i just wanted to get advice from those of you who have done this in the past. we have talked to several companies who have expressed interest, and i have a pretty good idea of how the process works and should work. however, i like others lack experience in the sale, so i would love all of your input. and yes, our accountant is taking a vital role in this. thanks all!
     
  2. csl

    csl LawnSite Member
    Posts: 235

    alrighty then! i guess no one wants to help poor ol me out. honestly, anyone with any advice would help. thanks
     
  3. ncls

    ncls LawnSite Senior Member
    Posts: 441

    You get what you pay for. Contact your accountant, and an attorney.
     
  4. csl

    csl LawnSite Member
    Posts: 235

    i get what i pay for? what does that mean? and i already stated that my accountant is playing a vital role. anyone here ACTUALLY have some experience in this.
     
  5. ncls

    ncls LawnSite Senior Member
    Posts: 441

    I actually have experience in this. Try and be a little more descriptive. What exactly are you wanting to sell? If the question was in more detail, the answer would be also.
     
  6. csl

    csl LawnSite Member
    Posts: 235

    we are selling the plowing division of our company. it is being sold as a simple asset sale. the only thing i am looking for is people who have sold parts of their company and some specifics on what worked for them and what didnt. i am not looking for pricing or any of that, that is already settled. again, just some do's and donts. what worked, what didnt, what i just some advice.
     
  7. Sunscaper

    Sunscaper LawnSite Senior Member
    Posts: 306

    Before I moved to Florida I sold on my lawn care business and plowing business seperately. Basically I renewed my contracts with the new owners name upon finding a lender for him to work with. I introduced him to his new customers, and p.o.c.'s personally. Finally I spent one month training him on the route so he knew the ins and outs. 2 years later he still sends me a Christmas card and has retained 90% on the accounts. I ran into trouble fitting my plow onto his truck so I credited him a fair market value, sold it on ebay, and he used some of his buy money to purchase a plow that would fit his truck. I had luck with it and wish you the same. Any more questions feel free to ask.
     
  8. csl

    csl LawnSite Member
    Posts: 235

    thanks for the help, glad it went smoothly for you. any trouble with finding a value for your accounts? any trouble having the funding go through? thanks
     
  9. Sunscaper

    Sunscaper LawnSite Senior Member
    Posts: 306

    I based both the values off a 1/2 of 3 years average gross plus fair value for any equipment they wanted to purchase. Any other equipment I sold or gave to my Dad. Financing was a little tricky since they both borrowed against their homes. I used American General Finance because I have a business account with them for customer project financing. They both got 6 months same as cash and paid off thier loans in six months. Basically I set it up to where all they had to do was sign the documentation, undergo training, and plug in to the accounts. Make it easy and profitable for them and it'll go alot smoother. People are generally leary about buying a business. If you can put yourself in their shoes and show them the $ it will go alot smoother. Good luck to you both.

    P.S. Both these businesses were not huge by any means. 2 men operations. Your may be larger and more complex but its basically the same principle.
     
  10. csl

    csl LawnSite Member
    Posts: 235

    thanks again for the help. i am selling 4 trucks with 24 commercial accounts. 1 sander, 1 de-ice as well. i could expand a helluva lot more but i honestly dont have the man power. no matter what i pay my guys i have to fight to get them up and going and do there routes. its not always like that, but i am selling to a much much larger company with 100 or more accounts.. so they have the man power. plus i offered to stay on for the next 2 months and supervise or run a truck and crew. thanks again
     

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