Posted:  18 Jun 2014 09:08
Registered User Currently Offline Join Date: Jun 2014	Posts:  1 Reputation: Unranked User Rank: 1 - Seedling
I have been in the business for years and now the owner of another interiorscape business in my area, wants to retire and has offered to me the opportunity to buy his business. He has asked me to make an offer if I am interested.  I know his accounts, he only has about a dozen, but they are good accounts and he has had them for years. The plants are in good shape and he leases them. Could you please give me an idea how we price our businesses.

Posted:  19 Jun 2014 03:50
Registered User Currently Offline Join Date: Jan 2011	Posts:  798 Reputation:  43 User Rank: 10 - Blossom
If the leases have run their initial course (typically anywhere from 1-3 years, depending on how it was structured to recover costs), there is probably very little residual value in the plants and containers, so they are only really worth the monthly recurring income for the lease and maintenance charges.  You are not buying the business, just the accounts, so figure on anywhere from 3-6 months' recurring income, depending on how well-secured the contracts are.  Leases that have gone beyond their initial term are generally cancellable with 30 days' notice, or whatever the agreements are between the 'scaper and his clients.  I can guarantee you this: the seller will think they are worth significantly more.  The final number will be somewhere in between, if the deal gets done at all.

Interiorscape.com is sponsored by NewPro Containers     RSS 2.0     Atom 1.0

Welcome to our Interiorscape forum for Interiorscapers, Vendors, Suppliers, Florists, Interior Designers, Special Event Planners, Educators and Students!