Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

Would You Buy This Company?

11 May 2023 · 1 min

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Mike Andes examines a lawn care company listed for sale and performs a quick valuation check. He reports the asking price is $850,000 for a business with 450 recurring customers, roughly $450,000 in annual revenue, and about $120,000 in tangible assets; after subtracting assets he arrives at $730,000 and a price of $1,622 per recurring customer. He poses the question whether this represents a good deal.

Questions this video answers

$850,000

450 recurring customers

About $450,000

$120,000

$1,622 per recurring customer

Chapters

This company is for sale for $850,000 on lawn care businessforsale.com they have 450 recurring customers and last year at about $450,000 in annual revenue. If we take their asking price of $850,000, subtract out their assets of $120,000, that's their trucks, their equipment, etc. That leaves us with $730,000. And if we divide that by their 450 recurring customers, that means we're paying $1,622 per recurring customer. The question is, do you think this is a good deal? This company.