1. Missed the live Ask the Expert event?
    Catch up on the conversation about fertilization strategies for success with the experts at Koch Turf & Ornamental in the Fertilizer Application forum .

    Dismiss Notice

Question about selling business

Discussion in 'Business Operations' started by Danp1985, Nov 25, 2018.

  1. Danp1985

    Danp1985 LawnSite Member
    Messages: 40

    Is anyone familiar with what a lawn business with around 70 accounts would be worth in the Rochester Michigan area?
     
  2. Bunton Guy

    Bunton Guy LawnSite Silver Member
    Messages: 2,189

    Whatever one months worth of income is + market value of equipment.
     
  3. Danp1985

    Danp1985 LawnSite Member
    Messages: 40

    That's not very good. It's not 6 months of revenue?
     
  4. Mdirrigation

    Mdirrigation LawnSite Platinum Member
    Messages: 4,167

    The value of the equipment plus what ever you can get .
     
  5. knox gsl

    knox gsl LawnSite Fanatic
    Messages: 6,716

    Depends on the quality of the customer base and profit per customer per season.
     
    hort101 likes this.
  6. Mow-Daddy.com

    Mow-Daddy.com LawnSite Fanatic
    Messages: 5,124

    Also depends if customers are under contract.
     
    Mdirrigation and hort101 like this.
  7. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 14,392

    Residential contracts aren’t really enforceable
    Even then the contract still has to be executed
    No one is going to pay for work so they can then pay to do it.
    The only thing negotiable is selling some of the profit.
    If the company has the same or similar pricing to the buyer and can show consistent profit margins
    Then the seller might be able to sell contracts for a portion of the projected profits

    Half the profits at 10% net is going to be a couple grand for 6 months and one solo guy... sorry to say
    There’s nothing tangible there to sell
     
  8. Charles

    Charles Moderator Staff Member
    Messages: 10,796

    Some new person , that hasn't read lawnsite, will pay 6 months:rolleyes:
     
  9. GRANTSKI

    GRANTSKI LawnSite Bronze Member
    Messages: 1,547

    Ppl do price that way pretty often. They do sell sometimes I know a guy who sold 60accts plus equip for $60k. But In my area accounts are valuable - there’s almost zero growth & development & ppl are leaving the state faster then coming. Could take you years to get 50 accts on your own. So I think Area has a lot to do w it.
    Maybe more appealing and realistic to do Something like a Long term 3-6 month buyout where previous owner gets % of billing from customers that actually stayed.
     
  10. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 14,392

    I spent 15 years running landscape operations in CT.
    Played with the big boys like green giant, yard apes, Hoffman, eastern land management, laflamme until I was one of the big boys.
    I bought accounts
    Made that mistake too
    You don’t need to buy accounts
    The ones people are selling are just going to keep changing hands until the one who’s holding them realizes the same thing the guy who sold them to him does, they’re not priced to make money.
    It’s possible you might be focusing your efforts in a bad part of Connecticut
    But the nice properties with value are always going to be maintained
    Trouble with that is CT is one of those states where prestige matters more than business sense (hence why people with sense are leaving)
    So people with bid super low to “own” the “good” properties and brag to anyone who will listen “I do that property over there”

    I used to do Martha Stewart’s property during the time she was in the big house (I never met her... I dealt with a guy that was managing her property)
    I got the property because I did paul Newman’s home (my father got me that property, they were friends)
    All in all
    Newman’s house made money
    Stewart’s didn’t
    The level of expectation out paced the budget considerably
    Monthly billing was “on par” with other estates I did but time spent on property each week was nearly double.

    Just because you CAN do a property or it comes available, doesn’t mean you want it.

    That may be the issue in the old saybrook area, too many people trying to become “famous” for doing nice properties that they’re gobbling them up st super low prices to “keep them away” from everyone else
     
    hort101 and Mdirrigation like this.

Share This Page