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What is my lawn maintenance co worth if I sell?

I have a lawn maintenance & landscaping company. We do $325,000 in sales. I have $200,000 in solid contracts, the rest is residential. $25,000 in assets
Profit- $100,000.

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Hello Mr. Hankosky,

I hope this finds you well on this Memorial Day weekend.

Simply wanted to personally respond to your unique query on BizBuySell, as I happened to come across it while browsing the forums myself.

Strictly from a quantitative perspective, your service business would be worth a fair multiple of your free cash flow from operations or "owner earnings". But of course every business also possesses distinct qualitative characteristics which also factor into the final equation.

Lastly, it also depends upon whom you would be selling your business to, as your existing contracts could be worth more to a strategic suitor than to an individual merely looking to enter the industry.

My boutique merchant banking firm could potentially be of some service in this respect, as far as providing a fairness opinion on the intrinsic value of your respective business, while also assisting in finding a qualified, suitable suitor for it all the same.


May 29, 2016

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