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selling my accounts...

Discussion in 'General Industry Discussions' started by CelticGreens, Apr 26, 2005.

  1. CelticGreens

    CelticGreens LawnSite Member
    Messages: 53

    i asked before but i'd like to get a few more opinions...

    unfortunately, my 1985 F-350 dump has become too much of a liability for me to fix. it isn't worth putting more money in it to get it running for this season. I am a college student and do this part time. one of my good friends has just started an LCO and we agreed that i would sell them to him. i have between 20-25 accounts, ranging from $25/week to $51/week. how would i go about setting a selling price for him. do you guys have any ideas or suggestions? thanks any help would be great.
     
  2. AceSprinkleRx

    AceSprinkleRx LawnSite Member
    from Wyoming
    Messages: 95

    As a general rule of thumb, 2.5 to 3 times the gross revenues annually for most brick & mortar type businesses is a good beginning point. But this is for a long term sale.

    Take into account how long your average account remains with you, and how long does your "buyer" intend on keeping the accounts?

    How much money on average does each account bring in, multiplied by number of accounts you have, and then use whatever multiplier you believe to be fair. If you're seriously getting out of the business you may want to have two or more LCO's possibly give you offers. provide them with the annual financials and see what they offer you.

    Best of success to you.
     
  3. LightningLawns

    LightningLawns LawnSite Senior Member
    Messages: 279

    When I buy accounts from people, I do the lawns free for one month for them and then they are mine. Thats how i've done it in the past.
     

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