Value of a Business?

Discussion in 'General Industry Discussions' started by emil35, May 31, 2006.

  1. emil35

    emil35 LawnSite Member
    Posts: 213

    I'm looking into buying out another group and was curious how I should try and figure out what the true value of the company is. Any suggestions?? Thanks for your time!
     
  2. PJDiesel

    PJDiesel LawnSite Member
    Posts: 146

    You will need to have an Accountant look at 7 years (or whatever is available) of P&L and tax returns.

    There is a formula.
     
  3. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    use the search function...there is a ton of info about this topic.
     
  4. JJLandscapes

    JJLandscapes LawnSite Senior Member
    Posts: 682


    you realize the percentage of LCO's that report all there money is very very slim i know companies in business for 30 years still say they have 1 worker and make 6k a year


    You need to look at there personal books with all there accounts and rates that they charge and figure yourself how much they are taking in then get a lawyer to make a contract with every single possible thing covered that can cause you to get screwed over
     
  5. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    What you described is a criminal enterprise and is to be avoided not invested in
     
  6. JJLandscapes

    JJLandscapes LawnSite Senior Member
    Posts: 682

    why? who cares if you buy the route and legalize everything you have zero liability you didnt break any laws or lie on any tax forms ...as long as you arent physically buying the corporate name ,structure and everything


    where you the hall monitor in HS just out of curiousity?
     
  7. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900


    Explain to me how they there books are gonna tell you anything of value?

    I suppose you still believe in the tooth fairy also kid :waving:
     

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