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How much would you pay for this company.

Discussion in 'Lawn Mowing' started by willretire@40, Dec 19, 2009.

  1. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Messages: 4,891

    This thread is an example of why I didnt even mention on here when I was selling my business.

    What everyone on here would have said was worthless, pays my mortgage every month and will for many more years.
  2. Grass Shark

    Grass Shark LawnSite Senior Member
    from Zone 7
    Messages: 660

    Mow only company with a 1000 weekly customers right? $300.000 Net. I think you could do $300,000 Net with 300 customers if you would properly upsell. Fert, Chem, Mulch, Etc. Cutting grass pays your bills, the upsell PAYS you! Dump 1/4 of your $1.5 Mil into your company and put your people on contract. Your buying a bunch of equipment in my opinion. I'd be scared to pay $300,000 there is only about $150,000 in physical capital and a bunch of people who are not on any type of contract. Just my opinion.
  3. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Messages: 4,891

    Not easy to find 300 customers to spend over $10,000 a year each on their yards
  4. Lawn Man Dave

    Lawn Man Dave LawnSite Senior Member
    Messages: 420

    I have made offer's and been laughed at and had offers givn to me that I laughed at......... that's buisness.

    I know 300k would get laughed at...... it is all about the risk vs potential reward for most people.....

    Maybe somone could you explain how it would be worth dumping say a million into a company when with no growing it will not pay for itself (not including any variables).... with no promice that the the customers will stick around after the first year or that it will continue to grow. If it tanks after the first year then what happens with that million you invested?

    I will allways think that it is better for the seller to sell off the accounts and to then sell the equipment....
    Last edited: Dec 26, 2009
  5. motorscot

    motorscot LawnSite Member
    Messages: 133

    Lots of ifs:
    Trucks: $60,000
    Mowers: $36,000
    Handhelds: $5,000
    Accounts @ 2.5 x per month = $218,750 ($1,050,000/12 x 2.5)
    Total: $320,000 starting bid
  6. willretire@40

    willretire@40 LawnSite Bronze Member
    from VA
    Messages: 1,390

    I would say $600k for everything with the owner staying on for his advice for 6months of the season but be available once a week for a meeting for 6months there after.
    Posted via Mobile Device
  7. Rivervalleylawns

    Rivervalleylawns LawnSite Member
    Messages: 146

    For everyone that says what if the customers dump you, then you have nothing.
    If you have a biz with 1000 customers i guarantee you that you are constantly dropping and replacing with new customers. Its the way any large company operates. You can figure a +/- of 2 or 3%. Just numbers for an example.
    And like someone said previously with the 5% of gross into advertising. You are constantly advertising, and given that you already have a large company, opportunities are endless.

    Also keep in mind this is for mowing only. Spraying, Cleanups, Mulch, Installs would all be easy to introduce with a customer base of 1000. Plus when your advertising new services, you have a great name branding to sell your services.

    I would guess something of this size and equipment, would easily go for 1 to 1.5 million.

    My neighbor in az, sold his business after like 10 years. He had like 5 to 7 maintenance crews and i think 3 to 5 install crews. I think he sold for like 9 million. I will say it is a little high for that, however he did have some amazing contracts not only for install but maintenance crews. He included a 4.2 million contract to the new buyer, which was for installs on a entire new neighborhood.
  8. Rivervalleylawns

    Rivervalleylawns LawnSite Member
    Messages: 146

    O yea by the way, he sold it and started to only do design. He said he will still clear 500k+ a year only drawing.
  9. fiveoboy01

    fiveoboy01 LawnSite Silver Member
    Messages: 2,988

    1 cut, seriously? Even a month's worth of cuts?

    Lots of pot smokers in this thread.
  10. willretire@40

    willretire@40 LawnSite Bronze Member
    from VA
    Messages: 1,390

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