Selling my LCO

Discussion in 'Lawn Mowing' started by outdoordynamics, Jul 30, 2006.

  1. outdoordynamics

    outdoordynamics LawnSite Member
    Messages: 13

    I'm planning on selling my buisness in SE Michigan. I could use some help on how to avertise it and what price I should sell it for. I have tons of equipment and around 140-150 regular customers. Any help would be apprieciated.
  2. Tony Clifton

    Tony Clifton LawnSite Senior Member
    Messages: 865

    You could sell it a few different ways. 1 would be to put it in the classifieds in your local newspaper. 2. Find a business broker, but they are going to want a big cut of the selling price. 3. Don't you have any local friends that own companies? Sell it to them. If not, call or fax a bunch of local companies telling them that your business is for sale. You could use flattery to help sell,,,tell tham you want them to buy because you like the way they run their companies, and you want your customers to be taken care of buy someone good.
    As far as value goes, some guys get lucky, but realistically the company is prob not as much as you think it should (which sucks). A general rule of thumb for residential maint. customers is one months revenue. So if you gross an avg. of $200/month per customer and you have 150 customers, then you can sell for 30k. The landscape side is generally not worth anything unless you have contracts for installs that you have not started yet. Equipment generally is not worth much, 50 bucks for a used weedeater, 4k for a z, etc. You may be able to sell for more, sell your name based on recognition etc. I am just trying to give you a rough idea of the minimum you should accept. Basically you are going to have to take what you can get.
  3. bigjeeping

    bigjeeping LawnSite Senior Member
    Messages: 903

    Where in michigan are your clients located? I know of someone who is looking to buy an established LCO.
  4. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    Many say that contracts is key. I don't believe that. I feel that longevity and name recognition is more important.
  5. outdoordynamics

    outdoordynamics LawnSite Member
    Messages: 13

    Most of my customers are located in Farm. hills and west bloomfield
  6. keith_480231

    keith_480231 LawnSite Member
    Messages: 117

    If I may ask why are you selling?:waving:
  7. outdoordynamics

    outdoordynamics LawnSite Member
    Messages: 13

    I'm just tired of dealing with the combination of employees that get fully trained to my customers and then leave me. I have been in business for over 15 years and have never kept a worker more than 2 years. They all tell me I'm the nicest boss they ever had and I do pay well w/benefits but they still quit or don't show up. Thats the main reason I'm selling.
  8. Liquidfast

    Liquidfast LawnSite Senior Member
    from Ontario
    Messages: 739

    I would say you are one of the lucky ones. I dont know of anyone around here keeping help longer than a season. Maybe I should sell too. :hammerhead:
  9. grant087

    grant087 LawnSite Member
    Messages: 184

    at this point in the season your gonna be lucky to sell the company as a whole.....just due to the fact that anyone that wants to buy a company will want to spend the money in the spring so they have one full season of making money under their belt......thats just my 2 cents....if you decide to split it up let me know i would be willing to buy some equiptment off you and accounts if you have any in canton, livonia or northville....let me know if your interested we might be able to work something out......
  10. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Messages: 4,205

    I have to agree.
    Contracts with commercial accounts are pretty much a necessity, but having contracts with residentials really doesn't mean much. Most residential contracts are quite easy to do away with, so what value do they add to a sale?

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