What is it worth??

Discussion in 'Pesticide & Herbicide Application' started by 31bro, Jun 3, 2007.

  1. 31bro

    31bro LawnSite Member
    from IN
    Posts: 126

    I might be getting an opportunity to buy a business with 350 clients. They also have a z spray max, enclosed trailer. What would a business like this be worth?
     
  2. Stuttering Stan

    Stuttering Stan LawnSite Bronze Member
    Posts: 1,503

    Too little info and also very vague. Something like this takes a real businessman to put a price on a purchase like this. I personally couldn't put a price on this unitl I looked at gross sales, profits, expenses, etc. Sorry, I know I didn't help
     
  3. vegomatic40

    vegomatic40 LawnSite Senior Member
    from 6
    Posts: 406

    Hire a accountant and a attorney that specializes in aquistion of businesses, do "due diligence" carefully before arriving at a price.
     
  4. Smallaxe

    Smallaxe LawnSite Fanatic
    Posts: 10,081

    The general rule of thumb for the purchase of the the intangeable assets, essentially the clients, is the gross sales for 1 to 1 1/2 years.
    .rick.
     
  5. Nathan Robinson

    Nathan Robinson LawnSite Senior Member
    from 47712
    Posts: 317

    Rick it accurate. It can range from dollar to dollar to a dollar and a half on the dollar. I wouldnt pay that much though. I would sign a non disclosure and drive by all of the lawns and make sure they are priced accurately and to see if the route is dense or scattered. You will be able to turn your money within 2 years or less if its a good deal. Nathan
     
  6. The Ranger

    The Ranger LawnSite Member
    from NE Ohio
    Posts: 208

    If you are buying the business with equipment get a copy of the last 2-3 years P&L statements along with a copy of the persons 2-3 yrs. tax returns. Take this info to your accountant and ask him. Asking a question like that on this board is like asking what a 64 Chevy is worth.
     

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