What has gross income got to do with it?? Gross income without gross margin and profit is nothing. Blue sky is nothing.
A percentage of profit after one year if the customers stay that long would be more like it. Contracts are generally not transferable. You do have contracts don't you ?? LM business generally are less than 12% net profit, so I would think that 6 months net profit would do it for a sales price. But I would cavet that with a clause stating the contracts had to stay for two years to recover that profit or you will alwasy be behind the profit level with that group of accounts.
Use equipment is usually just that. Not much more than 40 % of new price if in excellent condition.
Merging ?? Watch your ass there. Lot of flakes out there with no cash and a lot of blowing BS.
Funny how you guys go by weeks, here most of the routes ever sold that I know of go by months. Last time I heard a person selling their route, went for 4 months. I guess because over here we cut all year, it's done differently.
Around here the going rate is 6-8 weeks mow . Equiptment based on how new and how well maintained .
I did a purchase like this this year and it was a nightmare trying to make these new customers happy .
Some knew they would be dissatisfied before I even showed up the first time . If I do it again I will pay no more than 3-4 mows and purchase no equiptment .
It is better to buy new and get the warrenty and deprecation.
End of the season is a bad time to sell . Wait until spring and find a buyer and train if necessary. Just my thoughts.