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Thread: Buying an existing business

  1. #1

    Buying an existing business

    Thanks in advance for responding. What's the best way to determine how much to pay for an existing landscape business? I have already determined what the equipment is worth and I don't want to overpay for the accounts that he is selling. What is the general rule of thumb on buying existing accounts? 3X monthly Net/Gross??????

    Regards,
    Steve

  2. #2
    Administrator
    Join Date
    Feb 2005
    Location
    Nashville TN
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    99
    Steve,

    From my experience. I have bought residential accounts for 3-4 times a cut. So if a residential yard is $45. I would pay $135-$180 for that one account. I have also sold my accounts for 6 cuttings each yard. Some people also try and sell the accounts for 1/3 of what they bring in a year. This is just a guideline and could be different in other parts of the country.
    www.GrassToCash.com "Turn High Grass Into Cold Cash- How to Start a Lawn Care Business"

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