Selling a lawn business/accounts

fitph

LawnSite Senior Member
How many guys per crew?

Just saw the answer, do the employees go with the biz? It's hard to find people now adays
 
It's over 10k. I am just doing rough estimates here. I can go through everyone and get an exact number on accounts and money totals. I was just asking a question based on rough estimates. 80% of the yards are doing $100 per month bi weekly- $50 each time.The other 20% are $90 per month bi weekly- $45 each time, and a few are in the $60-65 range bi weekly, $120 per month. It may be 120 yards, it may be 132 yards. It's around 130.
 

kemco

LawnSite Fanatic
Location
Memphis TN
I know this will suck but the mows are probably worth 2 weeks gross maybe 3 since you have contract (I'm completely discounting equipment). Right now it's a "buyers market" for lawn customers. They are a dime a dozen. At least here.
 

Jashley73

LawnSite Member
Location
Louisville, KY
I was just given a handful of accounts by a long-time owner who can't find enough help this year.

While this was big for me, I can't imagine paying lump sum to buy a bunch of accounts.

Would it be worthwhile to start a new LLC with the new "buyer" with a structured buyout over X-months/years? New buyer could take over the residential accounts under the new LLC. Less risk for the new buyer. You get income for a longer amount of time. Employees have more reason to stick around.

Something to think about?
 

Youngandfree

LawnSite Fanatic
Location
VA
I was just given a handful of accounts by a long-time owner who can't find enough help this year.

While this was big for me, I can't imagine paying lump sum to buy a bunch of accounts.

Would it be worthwhile to start a new LLC with the new "buyer" with a structured buyout over X-months/years? New buyer could take over the residential accounts under the new LLC. Less risk for the new buyer. You get income for a longer amount of time. Employees have more reason to stick around.

Something to think about?
Sounds like his employees are sticking around since he said he has plenty of commercial work.
 
First off, folks wanna hate and pick apart anything you post, which is occasionally warranted because people do embellish alot. Ignor them stop defending your good question, Been mowing for 17 seasons. I've heard of 2 occasions where someone sold out customer lists. One was a waste of money, one turned out half good half waste. People are very finicky. You said there are contracts. Single season or multiple season. Next I'd wanna know how long you have had the customers. If they are all the type where you have mowed for multiple years they are worth more. The problem will be in retention at end of contract. In July, I personally wouldn't pay more than a month of income for the list. 10k. ??
In April I'd pay 2 to 3 months up to mayby 30k. The way to expand is to get your own clients and build your list up for free.... everyone wants to take shortcuts but buying out another mowing guys list is kinda dumb in our business where you can pretty easily build your own list for free. When you loose half or 3/4s of these new clients next spring you would be thinking same thing. Only time buying out is thinkable, in mho, is if your buying the name of someone's larger company. Still risky but if the company is large enough then clients don't notice new owners and everything just keeps rolling. Best bet to shed residentials is to have a buddy or someone you know take them. But that's not gonna make you much money. Like you seem to have realized and are now doing, About five years ago I dumped most of my residential and followed all the bid commercial stuff. Less bosses, happier clients, more money. I just dumped the yards back into the market though.
 

4 Seasonal Services

LawnSite Member
Location
Bend, Or.
I have done this before and am in the process of doing it again. My formula is total yearly revenue X length of contracts + equipment = price. Any investment that pays itself off within 3 years and turns a profit is a good one for the purchaser. Seems to work good.
 

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