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Can this be correct


LawnSite Member
West Palm, Fl
I am looking to purchase a lawn irrigation business from a local guy who is retiring. He says they did 3.5 million, and he cleared about 10%.

This seems really low, and I was wandering if he made some kind of mistake, or his prices are way low?

Any advise appreciated.



LawnSite Senior Member
He cleared 10% seems to me a little vague. Did the business clear 10% after his take or is that the total amount cleared? To have a gross revenue of 3.5 mil most of the time the profit margin is not going to be as large as smaller companys. This may be why the profit margin is only 10%.
I know when speaking with my cpa, I asked what was the avg. profit margin. I was told on service bus. 10 to 15 % JMO Later, Tony


LawnSite Silver Member
dog dam do i got to explain everything. first ask to see the books. he prolly exagerated the gross a bit. plus it includes parts/materials in it too. take those out and you got 1.5 mil for actual adjusted gross revenue off labor. of that he cleared $350k. how much he want?