Valuing, Selling Or Buying a Landscape Business - Minnesota - Part I

HOW TO BUILD, BUY OR SELL a LANDSCAPEis a complex process, but here are the basics.
MGMT COMPANY:As a business owner, you should always be
In the past 6 months, I've had a number ofthinking of your company's intrinsic value, and how
people ask me to advise them in valuing theiryou've achieved it. Most contractors look at the
business, or evaluate a business they'reincome statement (if they have one) at the end
considering purchasing. There's a lot of interestof the year and say "I made $100,000 net!" But,
and a lot of activity this year.using the same financials, you might have actually
So, what's a business worth?increased the value of your company by
To help you find out, you should follow three$350,000, or reduced the value by $50,000. So,
general rules.having the right information might mean a
1. Start planning TODAY! You never know when$400,000 swing in real value instead of $100,000
an opportunity presents itself, or when disasterprofit! Do you see how your daily decisions will be
strikes. Ideally, you'll want at least 2-3 yearsprofoundly affected by this new knowledge?
planning before selling a business.You have assets that you can sell, but I'm here
2. Hire a professional or ask an industry expert toto tell you that you aren't selling or buying "hard
help youassets". This article may be reprinted as long as
3. Maximize the guidelines listed below to bring thethe Author information listed is included in the
highest price.article.
The first place to look is your own business. This