How much $$ to sell my accounts ??

Discussion in 'Lawn Mowing' started by shorelinelawn, Jul 31, 2001.

  1. shorelinelawn

    shorelinelawn LawnSite Member
    Messages: 33

    I've been thinking about getting out of this business, at the end of this season , due to personal reasons, and an offer to go into something else.
    My question, I have a friend , works in my same areas, who I could offer my accounts to. I can probably sell him some of my equipment also. What should I charge per account ???
    All are residential , and I know our fees are competitive with each other, as are our services. Heck, most of our equipment is the same too !!!
    I'd just like to make him an intelligent, fair offer, that we could both be happy with, and not leave my customers in limbo.
    Any suggestions, would help immensly !!!
    thanks!!!: :eek:
  2. Scraper

    Scraper LawnSite Bronze Member
    Messages: 1,656

    I'd say one month's gross/account would be fair...
  3. CSRA Landscaping

    CSRA Landscaping LawnSite Bronze Member
    Messages: 1,232

    One month seems sort of low to me. I would try for 4, and if I couldn't get that, then 3 month's gross. Reason being, one month per account is way too low for the work put into acquiring them, imo.
  4. bruces

    bruces LawnSite Senior Member
    Messages: 648

    Perhaps you should structure it as a percentage of revenues billed or collected on those accounts for the first year or two.

    Maybe 10% of collections for each account for the first year. That will protect the buyer and give you incentive to make sure your customers stay with them. It would also give you an income stream and not require to buyer to pay a ton of cash up front. He could pay you as he is generating income from the accounts.

    The down side is that you would have to wait for your money.

    You would probably want to try to get some kind of down payment and perhaps a minimum purchase price. That way if he runs off all of your accounts for some reason you would still receive something.
  5. sheppard

    sheppard LawnSite Senior Member
    Messages: 542

    In the south east the going rate is 10% of the anualized contrat (each account) or 2.5 cuts. You could ask more if you plan to introduce the buyer to each of the customers.

  6. Scraper

    Scraper LawnSite Bronze Member
    Messages: 1,656

    It may seem low CSRA, but from what I've seen minus equipment that seems to be the norm...if I was a buyer I wouln't pay more unless like Sheppard says that the old owner introduces. There are just too many variables when buying an account list. Mostly that these "new" accounts have nothing requiring them to stay with the new company.

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