steps needed to sell business

Discussion in 'Business Operations' started by jtlandscaping, Mar 19, 2009.

  1. jtlandscaping

    jtlandscaping LawnSite Member
    Posts: 25

    I will possibly be selling my business sometime during this season due to a change in career. I am wondering what I need to do to prepare for selling? Would my customers need to be on some type of contract? As of last year I only had a verbal agreement's with the customers.

    I used the search function and didnt come up with much sorry in advance if this question is asked all the time.
     
  2. Proc's Lawncare

    Proc's Lawncare LawnSite Member
    Posts: 92

    Well having a signed contract in hand to offer a potential buyer sure looks better to the new guy buying it then saying we have a "verbal agreement" if you can easily transfer them to a contract, then I would do it. Makes each account worth something, without the contract your not really selling the account...know what I mean?

    Also, combine sale of equipment and contracts always gets more money in your hand. People would rather spend a little more and get the "whole deal" then just accounts. Hope this helps and good luck on the new career path!
     
  3. jtlandscaping

    jtlandscaping LawnSite Member
    Posts: 25

    What would I need the contract to say? I believe that it would'nt be that hard to put my customers on a contract. Sorry for not posting back right away I think lawnsite was down when I was trying to reply..
     
  4. wbw

    wbw LawnSite Fanatic
    Posts: 5,404

    Tell us a little more about your business. How many customers, how much revenue, how many employees etc.
     
  5. jkranium

    jkranium LawnSite Member
    Posts: 131

    Jt...what type of business are you running I might be interested...or know some interested parties.
     
  6. jtlandscaping

    jtlandscaping LawnSite Member
    Posts: 25

    Well its a pretty small business but I would like to grow a more this year. I would assume I would be selling it mid summer if I get into the hvac apprenticeship program that I applied for. Currently I have 6 full service residential accounts, all of them being decent sized yards for around here most are between 1/2 acre - 1 acre. I would like to have atleast 10 accounts by the end of spring if not more. Its a solo operation, and usually I put in about 20-25 hours a week during spring and fall, and a little less at slow points of the year.

    My services include
    clean ups
    Mowing
    Hedge trimming
    Mulch
    Weeding
    Fertilizer
    Light tree trimming
    Building flower beds + planting
    Light brick work as well
     
    Last edited: Mar 24, 2009
  7. jkranium

    jkranium LawnSite Member
    Posts: 131

    Jt, first thing what revenue level are you looking at, as top line will certainly be a part of what someone will offer you. What most prices are based on is a multiple of the EBITDA. Sounds like you are pretty small so I wouldn't expect too much.
     
  8. capnsac

    capnsac LawnSite Senior Member
    Posts: 702

    What do you pull in yearly with this?
     
  9. wz2p7j

    wz2p7j LawnSite Member
    Posts: 50

    JT - I also run a business brokerage in addition to my landscape company and have experience buying and selling companies. If there's a way to do a personal message on this board send me one and we can talk if you wish. Chris
     

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