How much is your business worth?

Discussion in 'Landscape Architecture and Design' started by TriMLawN, Nov 15, 2007.

  1. TriMLawN

    TriMLawN LawnSite Member
    from Tampa
    Messages: 15

    I have been going back and forth over the last few months about selling my lawn business, but I really don't know how to put a price tag on it. One of my buddies just sold his business in the area for 53k and I don't see how it was worth that much. He has pretty much the same equipment as I do and bills out $5500/mo. If anyone can help me out I'd really appreciate it. I bill out
    4k/mo with 50 residential accts. These are done in 3 days with by myself. I have the following equipment: (all equip is 6 mos. - 2 yrs old)

    Toro 44" ZTR 19hp kawi ... 800 hrs
    Toro 32" proline 13hp kohler ... 50 hrs
    2 Stihl fs80
    2 Stihl fc75
    2 Echo pb-651
    Echo ppt-230 pole saw
    Echo cs-440 chain saw
    Tanaka hedge trimmers
    Echo extended hedge trimmers
    Echo PAS-260 with trimmer, saw, cultivator attachments
    backpack sprayer
    every hand tool imaginable, wheelbarrow, etc.
    6x12 open trailer

    Thanks again for the help. Is there a better or worse time of year to sell a lawn biz?
  2. mdlwn1

    mdlwn1 LawnSite Silver Member
    Messages: 2,443

    I could move there a truck..start a business..and have that many the rates your charging in about 2 months. I'd put the accounts at less than 5k...or nothing at all. Up here, you really can't sell a business like yours.
  3. paponte

    paponte LawnSite Silver Member
    Messages: 2,366

    Honestly I think $53k is absurd. Unless there was a nice shiny ford Dump and trailer included that I don't know about. Accounts and equipment don't sell for all that much anymore. Unless you have an absolute proven turnkey business that does that per week, I really dont think your not gonna see any real $$. Like posted, why would I spend that kind of money when I could just market your area and pick up that amount of accounts?

    SOUTHERNGREENSCAPES LawnSite Senior Member
    Messages: 763

    Quick Question. You Say That You Are Billing Out $4k/month, To 50 Accounts. If My Math Is Right, That Means That You Are Only Bringing In $80/mth For Each Account (average Of Course). How Can You Be Making Money That Way?

    Also, With Out Very Accurate Financial Records Showing That You Have Been Bringing In Money And Making A Profit For The Past Three Years And With Out Letters Of Commitment From Your Current Customers, You Really Can't Ask For Anything B/c You Can't Prove You Have Anything.

    If You Have Any Ambitions For Selling Your Business, Be Legit Or Keep Two Sets Of Books So That You Can Prove What You Do.
  5. jbannick18

    jbannick18 LawnSite Senior Member
    Messages: 490

    Side note, my old boss sold just half of his buisness for 165k and I have another friend who could sell his for 700k right now, grass seems to sell very good in Florida. If he's getting 80 a month they are probably mow and blow in 15 minute accounts.
  6. yamadooski

    yamadooski LawnSite Senior Member
    Messages: 434

    First of all Id really like to see a northern guy come down here and pick up 50 yards in 2 months. Half you guys have no clue how intense our lawn care is here. The only way to do that is to lowball and have 5 mexicans pile out your truck.
    To be competitive we trim all our bushes every week. Do you guys trim and spray weeds every week at the same house.
    Man I could rant and rave about this all day and write a 100 page book on this subject.

    Now to the 80 per month quote...That is not always true that they are all cookie cutter lots. I have seen coner lot houses going for 75-80 month.
    The cookie cutter lots are now down to 45-65 a month and that includes bushes and weeding too. I saw one tampa dork doing small yards for 75 month and he said he comes 48 times per year. We are in the same area and only cut 40 times per year.

    Now to the original question I would give you 2 months gross income and market price in the equipment.

    Lawn care biz in Tampa dont sell to high unless you have all commercial and a manager with good employees.

    Im looking to buy another lawn biz now PM me if want to hook up.
    By the way where are all the accounts....New Tampa, Southshore, Bayshore, West side, Brandon???
  7. AGLA

    AGLA LawnSite Bronze Member
    Messages: 1,776

    He has one man grossing $1,000 in three days each week. That ain't bad. That is equal to more than $10k a month for a two man crew.

    Isn't the market down because of drought in that area?

    SOUTHERNGREENSCAPES LawnSite Senior Member
    Messages: 763

    dude, i know i don't understand your area, but how do you live off of a gross of $4,000/mth and still have to pay crew and equipment. I still get $40/week for my quarter acre lots and $55 for an acre and have started getting out of maintenance because of it being cutthroat. You guys stay down there now ya here...we don't want any of that low balling like you have down there to migrate up here to the Carolinas.
  9. jbannick18

    jbannick18 LawnSite Senior Member
    Messages: 490

    Not really lowballing... thats just the price for that area. I live in orlando and competition is fierce. Although I don't do 15 min lawns for any less than 25 a cutt, 88 a month
  10. poolboy

    poolboy LawnSite Silver Member
    from earth
    Messages: 2,408

    Don't worry, they're making their voyage as we speak.

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