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Selling my business..

Discussion in 'Bidding, Estimating and Pricing' started by Willjohnfrank, Mar 15, 2020.

  1. Willjohnfrank

    Willjohnfrank LawnSite Member
    Messages: 37

    I cannot believe I am writing this. I feel that God is leading my life in a different direction and I knew this day would come eventually. I am selling my businuess. I have a buyer that will buy it. He is a young man that worked for me for 1 year. His father is a businuess investor and wants to buy this businuess to give both of his sons a job. Being that he worked with me for 1 year and I am very personal with my clients, they all like and trust this man to take care of their properties as well. My question is how in the world do I value my businuess? Right now I make just under 90,000 gross in yearly contract payments. I don't have many residential accounts. I own a john deere 994r with 540 hrs. A john deere 997 60 inch with 1100 hours. 16 foot trailer. 2005 duramax crew can work truck with 320k miles. (In good condition and was planning on putting 500,000).
    I look to this site all of the time for wisdom from first hand experience. I don't want to sound like I am ungrateful. I love my job. I just know when God is steering my life to something else. I hate to put my numbers out there but it's the only way I can get some input. Thank you to everyone that helps with this. All my equipment is in very good condition. My businuess is know around our parish in Louisiana for being honest and well priced with grade A work.
     
  2. OP
    OP
    Willjohnfrank

    Willjohnfrank LawnSite Member
    Messages: 37

    I forgot to mention this is a lawn maintenance businuess only. No landscaping. The accounts can be done in 4-5 days with 2 people. I have all stihl commercial trimmers edgers and blowers. It's the dream setup with the diesels and stihls for 2 people. Both mowers have the 2019 seats on them. Extremely comfortable!!
     
  3. grass man 11

    grass man 11 LawnSite Senior Member
    Messages: 384

    your fixed assets, I would advise you to look up their value, your truck should be pretty easy to find the value of it. Mowers less than 800 hours figure 60% of the new cost. Over 800 hours, 30-40% of the new cost.

    accounts can be tricky. I don’t often see them go for more than 2 months of income.
     
    Jeff@diyokc likes this.
  4. grass man 11

    grass man 11 LawnSite Senior Member
    Messages: 384

    Seats don’t help value.
     
  5. OP
    OP
    Willjohnfrank

    Willjohnfrank LawnSite Member
    Messages: 37

    I appreciate your response
     
  6. sjessen

    sjessen LawnSite Fanatic
    Male, from Knoxville, Tn
    Messages: 20,472

    Being that you are a man of faith my suggestion is get counsel(which you are doing), attempt to come up with a fair market value for the hard assets and two find out what others are paying for accounts in your area.

    Locally, some pay for a few cuts at most but others pay more. Will the new owner be using your name? Do you have a website or other marketing presence?

    Finally, pray that the number you come up with is fair to all parties and God honoring.
     
  7. OP
    OP
    Willjohnfrank

    Willjohnfrank LawnSite Member
    Messages: 37

    That is exactly what I will do brother. I live in Avoyelles parish and it is a wasteland of hiennas what it comes to lawn maintenance commercial contracts and God has blessed me with the biggest bone to chew on. That 90,000 comes from just 3 accounts. And it's mostly local. It's very valuable to me and whoever would want a businuess with minimal traveling in my area. There is no big cities in our parish. There's grasscutters everywhere and I don't want to sound arrogant but my businuess is a different level in both terms of equipment, resiliency, hard work, and fair pricing, and trust which I earn on every account I have. Like I said I am personally connected through businuess of those 3 accounts. They would trust my decision and keep my worker. And I also know the one buying the businuess wants it bad for his sons. It's also personal to him. He is looking for a future for his sons.
     
  8. sjessen

    sjessen LawnSite Fanatic
    Male, from Knoxville, Tn
    Messages: 20,472

    Sounds like there is the potential for a win-win outcome. You might consider staying involved in a minimal fashion to facilitate the transition. Once things settle down you can move on with a clear conscience.

    Blessings!!
     
  9. OP
    OP
    Willjohnfrank

    Willjohnfrank LawnSite Member
    Messages: 37

    Thank you brother. This is the day the Lord has made. Let us rejoice and be glad in it! No matter what comes our way our God is MIGHTY to save
     
  10. sjessen

    sjessen LawnSite Fanatic
    Male, from Knoxville, Tn
    Messages: 20,472

    Yes He is!!
     

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