Open Association of Landscape Industries
How to value a Mowing round for sale.
If you were selling a mowing round, what would be the ratio of cut value (Based over a four week period) to asking price.
In a nutshell, I have a mowing round that will t/o £1600 over a 4 week period that I am looking to sell.
What price would you expect to ask for a round like this?
Replies to This Discussion
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Permalink Reply by Colin Hunt on -
This may be of interest and associated sites: http://uk.businessesforsale.com/uk/search/Gardening-Businesses-for-...
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PRO MemberPermalink Reply by Stuart @ Eco Garden Maintenance on -
There is a lot of greenthumb franchises for sale on that site.
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Permalink Reply by Colin Hunt on
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Thats what I thought - and they want an awful lot of money for them.
Stuart @ Eco garden maintenance said:There is a lot of greenthumb franchises for sale on that site.
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Permalink Reply by Andy Lawrence on -
I'm astonished at how high some of the companies listed turnovers are in comparison with declared profit.
The one that stands out is the £142,000 with net profit of £22k.
The only thing I can surmise is that they have either heavily invested in machinery/vehicles or perhaps bought a lockup in the last tax year, otherwise something is seriously amiss.
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PRO MemberPermalink Reply by Dan Frazer Gardening on -
Andy I was going to say the same. There was one with nearly £1m t/o but under 90k profit I think. Really low returns for such a lot of work and setup.
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PRO MemberPermalink Reply by Graeme @ BGS on -
You need to be mindful of what the actual Net Profit figure is - This could well be after all directors drawings etc. etc.
As you can appreciate when your accountant produces your annual accounts - well you don't need to spell it out :-) So the published Net Profit in the accounts is the one they have to use when re-selling - you will need to review their accounts etc. to see what the Gross Profit and business expenses, wages etc. are to get a better handle on profit.
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Permalink Reply by Rob Glassborow on -
NO!! Im not selling a business, Im merely selling part of my round. Please read the title, its not a gardening round, its not a business, its a mowing round for 2 days a week, with a T/o of £1600.
Colin Hunt said:This may be of interest and associated sites: http://uk.businessesforsale.com/uk/search/Gardening-Businesses-for-...
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PRO MemberPermalink Reply by David Cox on -
Rob, looking at this;
http://www.windowcleaningroundforsale.co.uk/index.php
Taking some similar calcs for a round, and Im making the assumption that a w/c round has similar customer - retention properties as a grass cutting round, you should ask for something along the lines of £5000 - £6000. Possibly more to a new start-up.
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Permalink Reply by Rob Glassborow on
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David, thats a fantastic contribution to the thread. Its amazing to see the prices that they are asking.
I have put the round on Gumtree for £2k. Now, listen, Im not desperate to sell it. Im just interested to see if they sell. If they do great, if not, then I will just keep it.
David Cox said:Rob, looking at this;
http://www.windowcleaningroundforsale.co.uk/index.php
Taking some similar calcs for a round, and Im making the assumption that a w/c round has similar customer - retention properties as a grass cutting round, you should ask for something along the lines of £5000 - £6000. Possibly more to a new start-up.
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PRO MemberPermalink Reply by Graeme @ BGS on -
A bit harsh Rob!?
Rob Glassborow said:Dan, seeing as you are the Duncan Bannatyne of the garden maintenance world I thought you might have had some serious wisdom to dispense here. But no, as usual your posts are as neutral and self promoting only as ever.
I always seriously doubt what you have to say anyway.
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PRO MemberPermalink Reply by Jen@A&J Owenwindows&gardens on -
As a window cleaner as well as a gardener (and not ashamed of it!), I can tell you that most rounds go for between 3 and 5 times the monthly clean value although for a very well established round then it can go for up to 10 times the monthly clean price. I would see no reason why the retention rates should be radically different for a lawn cutting business.
I'd say that for £2k that for someone thinking of starting up then it would be much easier in the current climate than trying to obtain new work. The handover is the key though - people don't like the idea of being 'sold' to someone else and the change needs to be managed carefully. The more time you'd be prepared to spend in any handover the more value the round is likely to be to someone if that makes sense.
Best of luck with it :)
Rob Glassborow said:
David, thats a fantastic contribution to the thread. Its amazing to see the prices that they are asking.
I have put the round on Gumtree for £2k. Now, listen, Im not desperate to sell it. Im just interested to see if they sell. If they do great, if not, then I will just keep it.
David Cox said:Rob, looking at this;
http://www.windowcleaningroundforsale.co.uk/index.php
Taking some similar calcs for a round, and Im making the assumption that a w/c round has similar customer - retention properties as a grass cutting round, you should ask for something along the lines of £5000 - £6000. Possibly more to a new start-up.
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PRO MemberPermalink Reply by Dan Frazer Gardening on -
Rob I don't understand your mood. My post about profit and t/o was general and not aimed at you obviously. Incidentally you have decided to sell your mowing round at precisely the value I suggested for it.
You didn't doubt my suggested value now did you? :)
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