Frequently Asked Questions

Frequently Asked Questions

When you are planning to sell your lawn and landscape business, it is crucial to determine its selling price. Pricing your business too high or too low can have a negative impact on the sale of your business. It is important to price your business correctly from the start. The final selling price of a business is ultimately determined by the market. However, Jim Parker, a nationally known and recognized business broker with nearly 25 years of experience and expertise can provide you with an objective and fair market valuation of your lawn and landscape business in a price range that will sell. He can perform a Broker’s Opinion of Value (BOV) for almost any type of lawn and landscape business at no charge and without obligation to use his service.

When selling your lawn and landscape business, confidentiality is one of the most important aspects to consider. All front-end and back-end marketing will be done in such a way that your employees, vendors, suppliers, and competition will be unaware that your business is for sale. Jim Parker and his team will put maximum effort into pre-screening prospective buyers in terms of financial capability, experience, and motivation. Following this process, prospective buyers are required to sign a confidentiality agreement before specific information about the business is disclosed. Jim Parker and his team have been selling lawn-related businesses for nearly 25 years and have never been the cause of a breach of confidentiality.

Absolutely. In fact, call Jim now on his direct line at 407-927-8999 to discuss the possibility of selling your business. The conversation will be confidential and there is no obligation.

Jim will be your listing agent/broker and will oversee the entire process of the sale. You will be working directly with him and will utilize the services of his entire team, including a Listing Manager, Writer, Graphic Designer, Closing Coordinator, and his Senior Advisor to name a few. While you will interact with everyone on his team at some point in time during the sale of your lawn business, Jim and his Senior Advisor will be your main points of contact.

Jim Parker and his team work on a success fee structure and charge no upfront fees. They will only be compensated when your business sells. If for some reason they don’t possess the talent, skill, experience, or connections to sell your business within the agreed-upon time frame, they will not get compensated. National statistics demonstrate that only 10-20% of all businesses for sale in the United States actually sell each year. However, Jim’s success rate falls in the 80-85% range due to his Business Sales Success System™. The 15-20% that do not sell are usually because the financials of the business drop after a deal has been agreed, or the seller has skeletons in the closet that were not disclosed. To dramatically increase your chances of selling, get a higher price, better terms, and sell in a shorter time period, contact Jim today for a confidential conversation.

The industry standard for selling a business is usually 6-12 months, and for larger businesses, it could take longer. However, Jim and his team, using his Business Sales Success System™, see that the vast majority of the businesses that they take to the market are under contract within 60 days of going to the market. Every sale is different though depending on location, size of business, and the specific type of lawn business involved. Plan on 6-12 months and be thrilled when Jim does it in a much shorter time period.

Unfortunately, only 10-20% of businesses for sale actually sell. It’s crazy that 80-90% of businesses for sale do not sell. Jim is very selective about the businesses that he represents. The businesses that he does represent follow his “Business Sales Success System™”, so he sees a 4 times better success rate than the national average, as well as seeing the business sell for a strong price, good terms, and in a shorter period of time.

It is estimated that 50% of businesses for sale that go under contract fall apart before the closing table. However, it is a rare occurrence for Jim’s deals to fall apart before closing. This is because when Jim prepares a business to go to market, he thinks through the entire process before the business is even advertised for sale. Like a good chess player, Jim thinks many steps ahead to greatly increase the chance of selling. As a business owner, if there are skeletons in the closet, it is best to discuss with Jim in an initial conversation to see what the workaround might be. It is also extremely important that you maintain or grow your business once you go to the market.

According to national statistics, only 10-20% of all businesses for sale in the United States actually sell. However, Jim and his team can likely sell your business if you follow their strategies and recommendations. It is crucial that you are an active participant in the process and work closely with Jim and his team. You should also follow the pricing and offering terms recommended by Jim and his team, as well as the strategies outlined by them. Additionally, it is important to maintain the overall appearance of your business by keeping it neat, clean, and organized (painting etc. if needed), replacing or repairing broken furniture, fixtures and equipment, organizing your financials, and having suggested paperwork ready for prospective buyers. You should also have a clear understanding of the entire business sales process upfront and disclose to Jim and prospective buyers the pros and cons of your business. Finally, continue running your business to the best of your ability until the day ownership is transferred.

When buyers are looking to purchase a lawn care business, they want to see that it is sustainable and has a customer/client base with a cash flow that they can build upon to grow the business. One of the major considerations is whether the present owner can prove that the business is actually making the sales the seller claims. Buyers look for businesses that are priced comparably. They typically look at several and are aware of overpricing. Businesses that tend to fare the best on the market and can command prices at the high end of the range for comparable businesses are those that have been operating for at least 5 years, have a favorable long-term lease, and are doing better in the current year than in the previous one. Additionally, buyers are interested in businesses whose owner works a maximum of 45 hours per week and files an accurate tax return.

When selling a lawn care business, one of the most valuable assets is the existing customer base. It can take years for a new lawn care company to develop its own client roster. The services provided are another important factor. Most lawn care organizations offer a variety of general services. Finally, potential buyers are often more interested in people than equipment.

It is important to report all of your income for tax purposes. A prospective buyer will want you to prove that your business is doing what you state. Unreported income can be detrimental because it will reduce the amount you will receive for your business, which will take longer to sell and limit financing options. It will also increase the chance that you may not be able to sell at all.
When selling a business, sometimes the seller’s lease is assigned to the buyer with the landlord’s approval. Other times, the seller is released from the lease with a new one being executed at the time of closing. Occasionally, a seller needs to remain on the lease as a guarantor. The terms of your lease will probably state what will be required in the event that you sell your business. After a purchase contract has been executed, Jim’s team will work closely with your landlord/property management company concerning the transfer of the lease.

If you own the real estate that your business is in, you have several options. First, you can sell both the real estate and business to the buyer. This can be beneficial to the buyer in terms of bank financing. If you do plan to sell the real estate with your business, it is highly advised that you let Jim recommend and oversee the commercial agent to sell the property. We have confidential and logistical issues in addition to the fact that the closings for the business and property would need to happen simultaneously. Secondly, you can sell only your business and then lease the premises to the new owner. In addition, there are several hybrid options. Jim can discuss and advise on different options with you.

Typically, the asking price of the sale of a lawn-related business includes all the furniture, fixtures, equipment, inventory, and goodwill. All loans are paid off at the time of closing so that the assets are conveyed to a buyer free and clear. Money in bank accounts, deposits, and accounts payable are usually not included in the asking price. Accounts receivables are also usually not included, although in some circumstances, depending on the size, this might be the case.

While many small business owners choose not to use the services of an attorney or CPA, it is highly recommended that you work with your attorney and CPA to ensure that the transaction is as you understand it. Jim can also provide advice and guidance on the transaction process.