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Thread: Price for business

  1. #1
    lethal
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    Default Price for business

    Just wondering if anyone can help me out???
    I am thinking of purchasing a business with 40 clients with a little bit of gear(all second hand, well used gear) and the asking price is $10,000.00.
    Is this a good price?

  2. #2
    Member of forum Sandgroper's Avatar
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    Sep 2007
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    Default Re: Price for business

    How much does the business nett each year ?

    I don't think its to important how many customers you have, just the qualityof them,,some folks make more with 80 than others do with say 130-150.

    And is it a long established business ? or just something someones thrown together over a couple of years ?

  3. #3
    Member Mowjoe's Avatar
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    Jul 2006
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    Default Re: Price for business

    One of the quickest way to work out what a mowing business is worth is to divide the amount of clients by the cut value (cut value being what you would earn cutting all regular clients over two weeks).

    This will give you an average cut value. To be of any value to you I believe the average cut should be around $30. Give or take a couple of dollars.

    An example would be cut value $2000 divided by 60 clients = $33.30

    Mutiply the average cut by 8 and then multiply that with the clients and that will give you a rough idea of what you should be paying for the clients.

    An example would be average cut $33.30 x 8 = $266.40(client value)

    $266.40 x 60 = $15,984.00

    I noticed on a business sales web site that a mowing round was for sale at $48,000, including equipment (approximate value $7,000). When I enquired the cut value was $3349 with 130 regular clients. Thats an average cut of $25.

    As you can see its a lot of work for the $ earnt.

    Hope this info helps.
    Darrel Foster
    Hastings Valley Mowing

  4. #4
    lifestyle
    Guest

    Default Re: Price for business

    Thanks, Darrel... I'll keep that info for further reference.

  5. #5
    Translawner administrator's Avatar
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    Default Re: Price for business

    The Truth

    Buying vs Starting your own

    Analysing and Valuing a Round

    Questions to Ask

    Sales Contract etc

    Click here to find out

    http://www.indmowing.com.au/html/business_thetruth.htm

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