[rockface50]

I am selling my Landscape contracting/ Supply business located in Pittsburgh Pa. and after reading posts of most topics related to the landscaping business it appears the ground trades exchange has the most experienced and professional companies I've seen on the Internet.
My company has been operating successfully in the Pittsburgh area since 1977 with the greatest percentage of income coming from the sales and installation of Unilock Paving stone and Retaining wall systems.

Several employees are interested in buying my business but financing is a major problem.

I am searching for several things here.......information from those who have sold/bought a landscape business and/or an interested buyer.

Thank you.

[Stonehenge]

rockface, from your website it looks like you've got a nice operation - sorry to hear you're selling it.

For other businesses in similar fields I've heard of companies selling for 1-1.5X annual revenues, but every company is very different. Your primary assets might be equipment (as a hardscaper, you must have at least a small stable of iron), or it might be a client list, or a few booked projects worth a good deal (or maybe all three and more).

You might consider sending a PM (Personal Message) to Pineapple, as I know she's working on the same issue.

I wish you luck in your search for a buyer - a solid business with good accounting systems in place and an established reputation could be just the thing someone needs to jump start into the business ownership.

[nebbe]

Just to let you know that if you are not comfortable with the sale of your business and are looking for answers there are business brokers and agents around. I know of some in our area and have used one before. They are usually knowledgable about the documentation used and how to prepare your business to be sold. You might consider seeking out a person like this if you don 't feel comfortable going at it alone.

[cutntrim]

Well, as Jeff said, every business sale is unique and especially so in an industry like landscaping. Anyhow a couple of thoughts;

"Goodwill" items such as a customer list are difficult to place a value on, and may not bring back the value you may attach to it. This might be a non-issue for you, but I know it's tricky when selling/buying maintenance companies.

The physical parts of your business will be a lot easier to value and to sell. Your shop/showroom/yard, your equipment/vehicles, your existing stock, etc...

Your existing (experienced & well trained?) staff may be attractive to a potential buyer, but as with a customer list, there's no guarantee they'll still be there after the sale.

How involved you personally are in the day-to-day activities, especially interaction with clients may negatively affect the perceived value of the business if it's known that you won't be there anymore.

My old auto mechanic had a very loyal customer base and when he sold his business, he stayed on for 3-4 months with the new owners to ease the transition for them and his customers. I know they're still in business (1 1/2+ yrs later), but don't know how many original customers are still onboard. I'm not.

My barber sold his business, but still works there. So in the eyes of the customers (like myself), it's same-old-same-old but he no longer has the headaches associated with owning the business anymore.

Again, I don't know your particular situation, but those are unique examples. Maybe staying on in some capacity (consultant?) might work for you? It may also increase the value of the business in the eyes of a potential buyer, since having you on-board for a while would help insure their future success.

Mixed feelings on selling to an employee. I'd want to leave my business to someone who would continue the quality work, and someone I know and trust. However, it's your future your talking about and I wouldn't want to take a chance on financing falling through if they got in over their heads. 'Cause you'd stand to lose as much , if not more than them.

Good luck.

[Mac]

Originally posted by cutntrim
Maybe staying on in some capacity (consultant?) might work for you? It may also increase the value of the business in the eyes of a potential buyer, since having you on-board for a while would help insure their future success.

This is what is known as an earn out period. Depending on how well this period goes, it could increase the value of the sale depending on the performance benchmarks you two decide upon.