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View Full Version : how to appraise a established buisness


dbiz
04-16-2012, 09:41 PM
There is a guy in my town that is selling part of his lawn care buisness. I dont know all the details but here is what I do know
Two walkers (I do not know size) one has 900hrs the other 2000
2007 Ford 350 with dump bed 200k miles
2009 Ford 450 150k miles with dump bed
16 ft trailer
50 contracts some comercial most residential
Made $100k last year
Asking $40,000.00
My questions for you guys are does this sound like a fair price?
Is it a good idea to buy a buisnes or start your own?
How do.you value the contracts? Thanks a lot

SECTLANDSCAPING
04-16-2012, 10:19 PM
The contracts mean nothing so dont value them. Everyone is free to choose who to sign up with and when someone sells they usually do. Shady characters will also start a new business and go pitch to those same customers.

cruzgardening
04-16-2012, 11:44 PM
There is a guy in my town that is selling part of his lawn care buisness. I dont know all the details but here is what I do know
Two walkers (I do not know size) one has 900hrs the other 2000
2007 Ford 350 with dump bed 200k miles
2009 Ford 450 150k miles with dump bed
16 ft trailer
50 contracts some comercial most residential
Made $100k last year
Asking $40,000.00
My questions for you guys are does this sound like a fair price?
Is it a good idea to buy a buisnes or start your own?
How do.you value the contracts? Thanks a lot

if he is selling all the eqipment with what u mentioned that's a fair price...
now did he Net that 100k? or was it gross? also did he do extra jobs or does he get the 100k from the route itself? because i can assure you he most be charging the clients about $200/month per client to gross $100k on top of which he still needs to pay everything else that comes with a business...

but like i said if he includes equipment its a fair price, have a mechanic check everyting before u agree to buy anything... also have him sign an agreement where he wont take your costumers if he eventually decides to go back into the business, actually the document should keep em away from his old costumers and the area he used to service... good luck

dbiz
04-17-2012, 12:02 AM
Thanks for the replies guys. The 100k was gross. So how much do you think he put in his pocket after expenses? Also the equipment includes a billy gift and snow plow.

Steve
04-17-2012, 04:47 PM
Why is he selling it? Why only part of his business?

How much are you valuing the equipment at?

The customers usually we see go for a month revenue? Maybe a little more?