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500 Thousand dollars

Discussion in 'Business Operations' started by Acswaupaca1, Apr 21, 2008.

  1. Acswaupaca1

    Acswaupaca1 LawnSite Senior Member
    Messages: 492

    So who here would buy a company that has 150-200 clients year around, 200,00 in equipment (5 ztrs, 1 mb 16' w.a.m, leaf truck, 3 plow trucks, 2 jd 450's w/ snow blowers, spray rigs, ztr setup for fert, tree spade truck, 3 trailers, 1 dump trailer, 1 enclosed, and a slew of blowers, trimmers, push mowers, edgers, and hedge trimmers.

    company wants 500k for it. Is it worth that? how much value can be put on customers?
  2. lifetree

    lifetree LawnSite Fanatic
    Messages: 5,369

    Broad brush, it sounds like a really outlandish price !!
  3. therainman

    therainman LawnSite Member
    from IL
    Messages: 196

    $500k is a lot of cash. What is the yearly income from this biz?
    You can not get excited purely by the equipment. Those are just expenses in the end if there are not enough dollars coming in.
  4. kleankutslawn

    kleankutslawn LawnSite Bronze Member
    Messages: 1,185

    what is the yearly profit for the last 3 years?
  5. doubleedge

    doubleedge LawnSite Senior Member
    from ND
    Messages: 911

    I dont think it is worth it to buy customers, they can leave at any time. I would let the company die and hope to get some of them :)
  6. ALarsh

    ALarsh LawnSite Silver Member
    from Midwest
    Messages: 2,412

    Name of company and where do they service?

    There is no way one can evaluate the value of the business in 4 lines of text.
  7. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Messages: 7,547

    If you ask here people will think its worth 1/2 the value of the equipment minus 3 months gross, unless its theirs....
  8. KrayzKajun

    KrayzKajun LawnSite Fanatic
    Messages: 10,737

    Ditto x2:hammerhead:
  9. Az Gardener

    Az Gardener LawnSite Gold Member
    Messages: 3,899

    If you are talking about a "real" business that can function with current or new management that is really a money making machine it is worth 3-4 times the net profit plus fair market value of the equipment. imho

    Now if you are talking about a company that is shooting from the hip and is only as successful as the owner who is working 50+ hours a week and a couple of key employees that know where all the skeletons are buried that is not a business at all. Its a job the owner owns and its not worth squat imho.
  10. bj351

    bj351 LawnSite Member
    Messages: 68

    i dont see how anyone puts any value to accounts. i will never PAY for an account. what keeps the guy from buying new equipment and getting his accounts back? what if everyone drops you? not likely... but ive never understood why anyone would pay for an account. plenty of work out there boys, just gotta get out and look for it. just my 2 cents

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