Selling a lawn business/accounts

hackitdown

LawnSite Gold Member
Location
Newport, RI
I sold my mowing/maintenance list about 4 years ago. I'll try to remember the details...I had around 55 lawns generating a little over $3k per week in mowing. Mowing took 4 days for 2 guys. Day 5 was for 3-man projects (lawn installs, plantings, mulching, pruning, aerations, whatever). I also did solo projects while the guys cut for 4 days. There was a full schedule of spring work and fall cleanups to keep 3 of us working from April 1 to Dec 1. I also included a plowing and sanding route for 1 truck. The customer list was good, no whiners, tight route, good payers. The buyer gave me $30k for the customer list. I sold the crew truck and all the equipment for a lot more. The truck alone was $23k, plus I sold 3 mowers (2 VRides and a Lazer), handhelds, 3 trailers, kubota/attachments, aerators, dethatchers, push blowers, etc, etc. It took forever to sell all the equipment, but I wasn't in a rush, so I got good $$ for everything.
 

RedSox4Life

LawnSite Bronze Member
Location
Mass
I’m always amazed at how low people value landscaping businesses.

Using two weeks gross (since I’ve seen that number used both in the thread and in past threads), I would gladly spend $10k to up my monthly revenue by $20k, or $50k to up it by $100k. Providing the jobs are priced correctly of course.

I don’t think you’d be able to replicate that math with post cards, or whatever your marketing of choice is. Plus, when you buy an existing business you can (hopefully) assume you’re taking over a well functioning system, with a curated customer base. rather than the shot in the dark at new customers marketing brings in.
 

ncls

LawnSite Senior Member
Location
Cleveland, Ohio
I have been in business for 27 years. 2 separate accountants, business brokers, valued the business at 160,000-220000. Roughly 200000 in sales. Sold to a relative for 80000. Will do 240000 in sales this year. Wanted to retire, but have to work the business. Can not find help, no matter how much they offer. He recouped 12000 by trading in one of the trucks. Owed 5000, they gave him 17000 towards a new one.
A few years ago, I bought a buddies snowplow route list. 50 houses, very tight route. 200 seasonal each. Paid 30.00 each first year, 20.00 each second year. 6 years later, lost just 3 of the original list. Was well worth it.
 

Youngandfree

LawnSite Fanatic
Location
VA
I’m always amazed at how low people value landscaping businesses.

Using two weeks gross (since I’ve seen that number used both in the thread and in past threads), I would gladly spend $10k to up my monthly revenue by $20k, or $50k to up it by $100k. Providing the jobs are priced correctly of course.

I don’t think you’d be able to replicate that math with post cards, or whatever your marketing of choice is. Plus, when you buy an existing business you can (hopefully) assume you’re taking over a well functioning system, with a curated customer base. rather than the shot in the dark at new customers marketing brings in.
What happens when the customers don't stick with you?
 

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