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Discussion in 'Business Operations' started by Troy Landry, May 5, 2002.
I'm selling a lawn care application business. What are the accounts worth?
Whatever someone else is willing to pay for them.....
Almost as bad as "I'm starting, what should I do?".
There are many ways to calculate this. The best thing to do is find a broker. Sort of like a real estate agent for businesses. Get some professional help if your busines has any value.
Are you selling only the accounts. Or you selling equipment and accounts.
The accounts normally run .50 on the dollar. The equipment is another factor. It depends on how old and the condition.
50 cents on the dollar is a good place to start. How long have you had the accounts? Commercial or residential? Or a mix?
Equipment included? How old?
Don't give it away. I made that mistake years back. Stay away from brokers! They'll rape you. You should be able to find the info you need to sell without getting a broker involved.
Take your time. It's your business.
Give us the info:
How many accounts.
What are the proximity to each other?
Average length of time you've served these customers.
Will the company name transfer?
How much are you charging compared to your competition?(Cheap lawns are easy to get.)
Will the current owned stay on board?
Do they all receive full programs?
50%-100% of the annual revenues are typical depending on the above factors.
I'd say NOT MUCH. I've bought a few lawn maintenance companies, and the accounts themselves played little in the price or the decisions. Equipment is what sells the accounts.
Good Luck....you may find someone willing to take a "chance".
Hey John I'll give 25 cent you give the other 25 cents and we can expand to WI.
I gave $1000 for 25 weekly mowing accounts grossing 37K/yr.
not all stayed with me, but well worth it.
I've heard 10-12 % annual gross income. pluss equipment.