Selling......need ballpark figure

Discussion in 'Business Operations' started by EROSS17, Jul 31, 2001.

  1. EROSS17

    EROSS17 LawnSite Member
    Messages: 49

    Selling my half to partner.
    My partner and I have had our company for 5 years now. I have just been offered to buy a business (not landscape related) that I am pretty sure I am going to buy. My partner has agreed to buy my half but we have not come up with a number yet. Tell me what you guys think is fair.
    90 accounts that gross $70,000 a year.
    8 X 18 Haulmark enclosed trailer
    6 X 12 open trailer
    1999 62 inch Toro Z-Master (great condition) w/vac setup
    1998 36 inch Bunton Bullet W/B (good condition)
    1985 60 inch Dixie Chopper (piece of crap but cuts nice worth about $1500)
    2000 36 inch Ryan Aerator
    2 new T-230 shindaiwa whips
    2 new EB7000 Red Max blowers
    2000 Tinaka Edger (not a stick edger)
    2000 Echo Power Rainger Tree trimmer
    97 Echo Hedger (not that great of one)
    And all the other little stuff that comes with this kind of business(wheel barrels, grinders, shovels, rakes, etc.)
    I also did all of the leg work, ya know,paper work, advertising, bidding etc.
    I appreciate any help!
  2. kturner

    kturner LawnSite Member
    Messages: 53

    I'm kind of wondering myself.

    I think I heard 33% of the business' net profit for one year. I don't think that includes equipment though, just client list.

    I'm anxious to hear what others say.
  3. Tough one

    what is your half worth

    now thats you problem you are only going to be able to sell 1/2

    I bought a biz for $8,000 including equpiment, and 42 accounts

    sold the mowers for what I bought the biz for and kept the rest

    there are going to be 3X's the variables in this to give you any kind of a ball park answer

    What did you buy together or seprate
    how much do you own (EG. 50% - 49%)
    how much do you owe together or seprate
    how much do you each net a year

    to much to get in to

    good luck EROSS17 LGF:blob1:
  4. EROSS17

    EROSS17 LawnSite Member
    Messages: 49

    Thanks for the replies guys, but I'm looking for some one that might be in a partnership and can relate. We are 50/50. Like I said, just a ballpark estimate. Thanks again
  5. thelawnguy

    thelawnguy LawnSite Silver Member
    Messages: 2,411

    Is the business woth 1/2 as much with one person gone? Or would your leaving not be such a blow? Or would the business now be worthless with one person running the show?

    Things to think about.
  6. EROSS17

    EROSS17 LawnSite Member
    Messages: 49

    My leaving would mean his income would double next season. I always kind of thought that he would get out of the business and that would have been a very profitable situation for me, but vice versa. He'll make great money doing it solo.
  7. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Messages: 2,810

    50% of the resale value of equipment minus 50% of any business debt.

    Is $70,000 total gross sales for the year?

    That means your 50% is worth $35,000. The going rate (on this forum) seems to be 10% of gross receipts = $3,500

    He wouldn't need any help?

    Did you guys discuss this possibility when you started up?

    Good luck...
  8. EROSS17

    EROSS17 LawnSite Member
    Messages: 49

    $70,000 is gross sales. He could take over and do it by himself. We have a good route. We didn't talk about this stuff when we started.
  9. Currier

    Currier LawnSite Senior Member
    Messages: 564

    "My leaving would mean his income would double next season."

    Or he may get your half from you cheap and then turn around and sell out the whole biz for next year. I would imagine he is a good person and is not set on screwing you over, BUT... he may start to get a little overwhelmed at the thought of doing ALL of the work by himself. Should an opportunity to sell for a handy profit come up he may take it. My point in this rambling....Make sure you are happy with the buyout, and then realize you are gone and what he does with it is his business.
  10. EROSS17

    EROSS17 LawnSite Member
    Messages: 49

    Anythings possible! Neither of us are out to screw one another. To be honest I could do my new business oppurtunity and continue with our business. But I would rather get out. So I want to get a nice chunk of change for it.

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