Business for sale questions?

Discussion in 'Business Operations' started by mike and jana, Jul 30, 2007.

  1. mike and jana

    mike and jana LawnSite Member
    Messages: 22

    I have a business I am interested in selling. This is our 3rd season with a nice established customer base. We have 37 contract mowing accounts and approx 35 additional treatment only customers. Treatments being the ferts, seeds, weed control, grubs etc. All mowing accounts are 12 month contracts which cover the weekly mowing services. All additional services such as ferts, seed, weed control, lime, grub control, etc are extra. Anyone have an idea of what this may be worth, feel free to chime in. Our annual gross on there is approx $95k. Not to mention any bush and shrub trimming, installations and whatever else they may need.
  2. turfsolutions

    turfsolutions LawnSite Senior Member
    Messages: 854

    Its a very good question. What is our business worth? Some will tell you it's not worth anything. I think it all depends on the business, how well it is managed, how well it has been recorded, and the type of clientel. I am thinking about selling the property maintenance end of my business going into next season and strictly do lawn treatments only. It grosses a little more than your business, but our businesses our similiar enough to compare. I would hope that you could get 40-50% of a years gross for the contracts only (equipment and trucks not included). That may be difficult though and you may have to settle for less. Who knows, put it out there and keep us posted.
  3. mike and jana

    mike and jana LawnSite Member
    Messages: 22

    Thanks Turf Solutions for the imput. I have an appointment tomorrow with someone. I will post the results.
  4. turfsolutions

    turfsolutions LawnSite Senior Member
    Messages: 854

    Thanks. Looking forward to what you find out.
  5. redneck1198

    redneck1198 LawnSite Member
    Messages: 82

    down here where i live u pay 3 to 6 months on accounts not including equiment
  6. Bigray

    Bigray LawnSite Member
    Messages: 140

    what did you find out Mike ?
  7. Stillwater

    Stillwater LawnSite Platinum Member
    Messages: 4,889

    oh wow this is a tough question i am not even gonna try to answer...
  8. TSG

    TSG LawnSite Senior Member
    Messages: 444

    the 30 second version...........................
    A "business Valuator " would say 30 cents on the gross dollar plus market value of equipment .

    The 2 hr version would be multiple of of earnings, good will, service contracts,
    accounting methods, other lco comps in the area.

    Just .02

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