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Whats it worth??

Discussion in 'Business Operations' started by vadeere, Apr 5, 2008.

  1. vadeere

    vadeere LawnSite Member
    Posts: 247

    I am debating selling my business. My question for you all is what is it worth as a package, equipment, accounts, name etc. I would like to sell Jan 1st 2009 but would entertain other options for the right person. I will tell you what I think its worth in a little while. Here are the details
    2-3 seasonal employees
    2000 Dodge Ram 2500 4x4 diesel 225k miles
    2001 Dodge Ram 3500 4x4 diesel 145k miles w/ 12 ft dump
    2005 18ft 7k lbs trailer
    2006 18ft 10k lbs trailer
    2004 exmark metro 36" 600hrs
    2004 toro z 23hp 60in 700hrs
    2006 toro z 23hp 60in 400hrs
    2005 Deere 32hp tractor 4x4 600hrs w/ loader bush hog, rear blade
    2005 billy goat truck loader 16hp maybe 75 hours
    4 stihl trimmers fs80-85
    3 stihl backpack blowers br420-600
    2 stihl hedge clippers idk the numbers put its the pro stuff
    $3k in hand tools wheelbarrows binders chains
    we did $105k last year and look to do $165k this year
    good name in the community w/ limited regonition due to only being in the business for 3 years, legit co w/ liability, workers comp, commercial truck insurance, liscensed and working on obtaining a contractors liscense
    good growth potential with selling additional services to existing customers
    So what do you think, good bad ugly.
  2. vermonta

    vermonta LawnSite Member
    from Vermont
    Posts: 87

    You want some of the same kind of info I am looking for in my other thread. I would wonder something? You say $105k? Doesn't seem very high for 2 to 3 seasonal plus yourself? Or am I missing something?

    Do you own everything out right or do you have debt on it? That would make a huge difference. That's a lot of growth in one year with what you have or maybe not, depends on the area.
  3. vadeere

    vadeere LawnSite Member
    Posts: 247

    $105k is all we did last year, low growth, i know. I lost a couple of nice accounts combined with the drought I scraped by. This year I have benn more agressive in securing work and have been getting more into the landscape end of things. My guys last year were washing stuff and doing busy work like detailing my personal truck while it was dry. I even had them detail my old man's corvette before a hot date. So yeah sh!t was slow last year, I personally did not make a lot of money. On the debt side when I factor in my accounts recieveable I owe nothing. What kind of numbers are you thinking.
  4. vermonta

    vermonta LawnSite Member
    from Vermont
    Posts: 87

    If you own everything you are always in better shape when business is slow. My business was slower last summer due to wifes health issues which took some of my time. I had one guy 4 days a week just mowing (I do some mowing myself and all of the Kubota work) and it worked out good for me. Winter was good and am looking forward to the summer.
    I would ask you why are you thinking of selling? Just want out? or?
    If your clients are under contract there worth more but if not it's iffy.
    I was asking in my other thread to get input for a friend of mine who wants to sell to a local business man and run it for him.
    I think his deal isn't real good but not sure.

    He is basically paying for the equipment and giving him 15% of the gross of his customers at the end of the year. He would work for the guy and run it for $17 and hour. IMHO It's not a good deal for him at all.
    There are a lot of details tax wise which are not good for him either but it's a long story.
  5. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Posts: 5,407

    I think the accounts are worth 5-15% of your gross depending on how good your accounts are... plus the value of your equipment.

    The way I see it... if your business does not run itself and you don't have a manager supervising your foremen, it is not worth very much as a business.
  6. vadeere

    vadeere LawnSite Member
    Posts: 247

    I am selling because I want to go to school, something I never thought I would say. I am also getting burned out and I am starting to hate my job. Its not a money issue, I make good money and we continue to grow even in this economic climate. Being 21 years old I should not have to worry like I do, I should be worried about whether I will make to happy hour in time like all my friends are. On the management comment, I wouldnt disagree however when things are good (8 months out of the year)my butt doesnt sit on a z. Mainly I deal with the pita customers, meet with people, and am on high dollar, tight schedule jobs that cannot hiccup. So I guess I act as a manager in that respect. If things are falling behind I work 14-16 hour days, but most days I do not. I will show up to a job to clear something up with a customer or my guys, bring materials, I also have a lot of f*** off time too some days. I have a person in mind to buy it that worked for me through college and knows most of my customers but you never know if these things will go through. In summary I would say I am at a crossroads in respect to growing pains. I mean $50 lawns do not do much for me but I do not have the infastructure or whatever to go after huge contracts. Number wise I have heard numbers from I should pay some one to take it to its worth have the state of Delaware. I would like to see it fetch $100k to $115k and that would fall in line with my future plans to pay cash for a house near college. So what numbers do you all think?? I truly appreciate everyone's feedback, thanks guys.

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