Thinking of selling out

Discussion in 'Lawn Mowing' started by jay, Sep 7, 2001.

  1. jay

    jay LawnSite Member
    Posts: 133

    I'm thinking of selling my business. Where is the best place to advertise at? Was thinking about putting something up on distributors bullentin board. What should I put in it? Don't really want to put name up because I havn't told any customers yet.
    Has anyone ever sold company here? If so, how did you handle tax time?
     
  2. Allyn

    Allyn LawnSite Member
    Posts: 58

    I sold my business last year. Put your ad in the business for sale in the classifieds. Or business opportunity section. As far as the taxes. Call your accountant.

    You will need all your paper work to sell this. Financial statements, lists of assets, cash flow, etc. Have a list of your accounts and what work you do on each one. How much they pay, if they pay on time. Determine if your price, and if you are selling your equipment or just accounts.

    Depending on the size of you company, you may want to sell your accounts in areas, to other companies.

    This might be the first action. Call some of the other companies, they might be interested. I found my accounts from the guy who sell my equipment. He knew someone selling out.

    Allyn:blob3:
     
  3. jay

    jay LawnSite Member
    Posts: 133

    Thanks, when you sold your accounts and got that lump sum did you have to taxes on it that year or did they let you pay over a couple. I have all my accounts on Quickbooks that show all the activies that took place for the year. Was going to give this with account also have a log of time spent and things I did to each account. When you sold yours did you help in the transtion or did you just drop them cold turkey? How long did it take and what part of the year did you sell it in? I would like to keep all my accounts together along with equipment and sell as a package deal. It's really going to be hard for me after being in business for five years now. But I can't handle all the business I get and would like to see someone who is thinking in bigger terms than me to take it over. I've been giving away potential customers almost this whole year.
     
  4. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    this might sound silly .....but when I first heard it ......I thought ya right .......untill I meet the lady whoms husband bought the business

    the seller used a local Orlando Business Broker whom listed the business "Over Seas" ...... a business couple whom lived in England bought the business so they could enter the USA without the process of a visa ......they are legal residents of England whom happen to own a business in Fla (as one can imagine she really was not going to open up all the detail)

    Besides Tax reasons ...they needed to get in the states for other ventures .....operations which are just sub business of this main going concern ......I'd say a lawyer or business broker has better info

    But I do know that the going concern was expecting a local purchase of $175K yet the broker got the $250K (those were upfront $$ I have no idea of any further $$ or financing which may have been agreed) ...... this is a fair size company which does local roadways & commerical as main income

    Good Luck ;->
     
  5. jay

    jay LawnSite Member
    Posts: 133

    Thanks, any other suggestions
     
  6. Why sell? Instead of giving up customers, sub them out.

    LGF:blob1:
     
  7. jay

    jay LawnSite Member
    Posts: 133

    Too many variables in subbimg out, just would like to get out totally and move on.

    Allyn, how did you advertise your buisness? Did you put amount in paper or did you let them call? How did you screen the serious buyers from the not so serious?
     
  8. Allyn

    Allyn LawnSite Member
    Posts: 58

    The ad read "Lawn Maintenance Business for sale". I had many calls. You have to talk to the people to find the ones interested. But see account there go for one months worth of service. Plus what you feel your equipment is worth.

    If your income is $5000.00 a month. I asked for $5000.00 for the accounts, plus X for the equipment. Where you live you may get more for you accounts because it is year round work.

    Finding someone this over $10,000.00 to by your business will be hard, at least for the accounts. No hard assets. So no bank will really get involved.

    This is why it might be easier to sell your accounts in different areas, to different companies. It would be nice to sell to one person and say I am done, if you can find that one person great. They might only need to come up with a few thousand for those accounts. It is easier to come up with a few thousand that several thousand.

    Then went you have about $1000.00 a month income left. Sell the equipment and accounts to one person.

    There is a guy here who is selling is company for $75,000.00 and makes $85,000.00 a year. Well I don't have $75,000.00 laying around for his accounts, and I thing I would do better to take $75,000.00 if I had it and put it into advertizing and equipment. No bank or SBA will touch this, because there are no assets with it. The rate of return on my money is to far out. Most here get three months of work for there accounts. The accounts might not stay with you if you bought it and there fore you are out the money. So I asked if he would sell part he said no. Well it will take along time to sell. It was in the paper today.

    Now I sold my house with my business. It was unusual, so it worked well for me. He bought the house and business and equipment. I don't think many stayed with him, but I know that he made some mistakes. He is young and learning. But service is the key here. Any one can cut lawns, but its the service that keeps the people with you.

    Allyn


    :blob4: :blob4:
     
  9. jay

    jay LawnSite Member
    Posts: 133

    This has been veryn helpull. Thank You Allyn. I'm going to try to sell everything together, but like you said I might not have much luck. I feel my buisness name is whats worth the most, its well advertised and known name and I would hate to see my customers get split up with a bunch of businesses. I know if that what it takes to sell then thats what it takes. I hope whomever gets it performs as well or better than I have, because its like you said; "its the service that counts".
     

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