Valuing a Business

Discussion in 'Lawn Mowing' started by Bobby, Sep 16, 2000.

  1. Bobby

    Bobby LawnSite Senior Member
    Posts: 258

    Hey guys.
    What is the value of a one man operation grossing 4800.00 a month in south Fla? 58 accs all within three miles of each other.All residential.All nice clean lawns, no sand pits. Aprox four days a week work.
     
  2. Getmow

    Getmow LawnSite Senior Member
    from VA
    Posts: 445

    Not sure of FLA but a guess would be one month's gross????
     
  3. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    In Maryland the accounts seem to be so easy to get (they are building like crazy) that lawn services have no value. A friend of mine is going out of business next year and I asked him if he was going to sell his route list. I don't want it I was just curoius. He said "No", he was just going to close. I asked him why not and he said it had no value since accounts are so easy to pick up.
     
  4. Lazer

    Lazer LawnSite Bronze Member
    Posts: 1,446

    Depends on profit from the route.

    An "easy-to-get" account will probably have low proft.

    In this route, Bobby, there is very little profit from this route. In other words, after you hire somebody to do the work, pay all your expenses, almost no money would be left over.

    Basically, you're buying yourself a job.

    The proximity of the accounts IS of value. I think the 1st apprasial of 1 months gross is probably close.
     
  5. greenlawncare

    greenlawncare LawnSite Member
    Posts: 105

  6. Bobby

    Bobby LawnSite Senior Member
    Posts: 258

    Thanks guys.
    I have a guy with twenty grand ready to take over. Guess I better take it. I sure am gonna miss this grass.
     
  7. morturf

    morturf LawnSite Senior Member
    from midwest
    Posts: 475

    interesting, the calculator has no mention of the hard assests of the company. What are they worth? seems to me that the value based solely on income and revenue is a litte low given the asset value invested. Maybe just the customer list? wow, seems that this is way too low if i was gonna sell my business. Seems that if a business is valued such that you can pay off the selling price in less than 1/3 of the years profits than why work to build a business with good assets. not a good evaluator in my opinion.
     

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