Selling a business

Discussion in 'Lawn Mowing' started by creeksidelc, Jan 1, 2006.

  1. creeksidelc

    creeksidelc LawnSite Member
    Messages: 39

    I hear about people selling their businesses, and was just wondering about what a business is worth with say 50 residential accounts, and equipment and trailer. Lets say the lawns are averaging $45.00. and the location is in Georgia (southern climate) Thanks for the response.
  2. BCFLawnLandscape

    BCFLawnLandscape LawnSite Senior Member
    Messages: 333

    I personally would not buy "contracts" from someone, I'd rather go out and work to get them on my own. As far as the business side of it, are they selling the equipment also or are they just selling the contracts? If they are selling equipment what equipment are they selling? trucks? trailers? blowers? mowers? these are all important details in trying to put a price on something!
    Hope this helps!
  3. GotGrass?

    GotGrass? LawnSite Member
    Messages: 5

    I know my area differs, but if you are selling the accounts only, a good rule of thumb I use is a minimum of 4 months worth of pay from the account (We mow about 30 wks/year). Example... An account that pays $45/week would equal about $720 to sell. I may be stupid, but I also go with the guy who takes over for 1 week and also offer a "replacement" account if the customer quits on him within 2 weeks. As for the equipment, I have heard of people selling the equipment at a high price and then throw in the accounts "as is".
    My area may be different though. We have so many Californians coming in, that there is more than enough business out there. Where I am lucky is that I have some business savoy, and scoop them up and sell them to those who don't have very good business skills.
  4. LLandscaping

    LLandscaping LawnSite Bronze Member
    Messages: 1,016

    I would not buy someone else's business, I would rather start fresh and get all of my accounts. But if you are going to buy someone's business I would make them sign a contract saying they will not contact any of the client you bought. I would also make the new customers sign a lawn care agreement with you for a year before you start.
  5. gaulk

    gaulk LawnSite Member
    Messages: 82

    do a search on this you will find more then enough material. as for buying accounts it is a fast way to grow your company. do the search type in buying account's and read it is all there, by the way i just bought 23 lawns with in a 2-3 block radius for 6 mowing's worth :eek:
  6. creeksidelc

    creeksidelc LawnSite Member
    Messages: 39

    Thanks for the reply. That helps a lot. I will try the search engine also.

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