Selling business, have a few questions....?

Discussion in 'Starting a Lawn Care Business' started by ACA L&L, Sep 15, 2011.

  1. ACA L&L

    ACA L&L LawnSite Bronze Member
    Messages: 1,102

    Hello, I own a lawn maintenance, sprinkler repair, spray, landscape install company that on average will gross around $250k.

    I have about 50-60k in equipment and trucks, plows so on.
    I want to sell the company as a turn key operation, I have more than a few companies interested, but need a little directon in the pricing process.

    I have bought many smaller companies "lawns" before, the standard 2 months one month of mowing applied in those circumstances, however when selling a business, its diffrent.
    I would assume that one year of gross receipts and the value of equipment would be a good starting point.
    Everything you would need from phone numbers, email, billing software, contracts......we gross over 200k from contracted year round customers. i would estimate that we gross close to an additional 100k from one time service calls.

    I would like a few comments, some feedback on how you woulkd price this business..Thanks for helping out.
    ill check back tonight thanks.:clapping:
  2. ACA L&L

    ACA L&L LawnSite Bronze Member
    Messages: 1,102

    I thought it was a tuff one as well......good luck out there, be safe. After long consideration, decided that it would probably be best to have the bizness evaluated and let a broker handle the actual sale....
  3. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Messages: 4,891

    Typically a true turnkey operation.......that means if you left right now for a month, nobody would notice you gone. New work would come in. Estimates would get done. Work would get done. Bills paid. Payroll done. You would come back without calling a month later and have the business in just as good or better operation.

    That business is worth roughly a years gross plus equipment.

    The more involvement you have. The more the customers think of you as the face of the business, the less its worth.
    Posted via Mobile Device
  4. ACA L&L

    ACA L&L LawnSite Bronze Member
    Messages: 1,102

    "Turn key" is the key here, with the same guys working the property's the work will get done, you willbe able to continue billing, the new owner will have to answer the phones, respond to customer's needs request for bids, new estimates, send the bills out monthly, writ the payroll checks....we have all that in place, i have left for a few weeks and it was done( not like i would have done it, but done) The new owner will have to work for the money but it will be his money, I have no problems staying on for a few weeks, months with some sort of compensation for time. Great relation ship with customers but they can interact with anyone on my crews and get what hey need done, they all know our hourlyt rates. Rarely do i have issues with billing, when a customer calls its not a querstion as too how much will it cost, but when can it be done.

    New estimates are diffrent, but if you know what your doing its easy, the estimate is just a formality. If they didnt want the work or think you were a good company they would not have called.........thank you pro cut for your insight, i really appreciate your opinion.

    on another note, no way in hell your getting a 200k+ company all the tools to continue growing and making money for one months salary! no way, if you sell it for that price you really didnt have a strong base in the first place......
  5. taggl

    taggl LawnSite Member
    Messages: 2

    Please factor in your yearly net $$$ and how much work you actually do.
    your grossing 250k, but if you are only netting 20k and having someone manage the operation, the value isnt worth that much.
  6. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Messages: 4,891

    I wonder how many guys believed their business was worthless when they sold it and somebody got a steal

    It shows how much the lawn business sucks.

    Buy a deli and you have payments for years
    Buy a gas station you have payments for years
    A hair salon
    Any business. You buy an established business and it takes years to pay it off.

    Not the landscape business.

    Guys will sell their business after 20 years and you pay it off in a month or two.

    Thank God I didn't post "what's my business worth" on here before I sold it.

    I wouldn't have 4 more years left of collecting a nice monthly check
    Posted via Mobile Device

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