There are many factors that go into the valuation of a landscape maintenance company by a potential buyer. Some of these factors are objective and others are based on personal preference, but net income is always the number one determining factor.

Following are some of the significant factors buyers evaluate before making an offer:

1. The number of employees, how long they've been with the company, and their hourly compensation.
2. The levels of training each employee has achieved;
3. The number of accounts the seller has, and their average size, measured by monthly billing amounts, and whether they are commercial accounts or individual home accounts.
4. The age of each account;
5. Whether the accounts are highly diversified among many clients or highly concentrated among a small member of clients such property management companies that control many of the landscape maintenance company's accounts;
6. The number of years the seller has been in business and the company's reputation in both the community and industry;
7. The location of the place of business. This may be a positive or a negative factor;
8. The terms of any premises lease. This may be a positive or a negative;
9. Whether the owner will stay with the new operation for a period of time; and
10. Any physical assets such as vehicles and equipment;

If you are interested in selling your business now or in the near future, PacificBusinessAdvisors.net can provide you with a free broker opinion of value. We have clients interested in acquiring landscape maintenance companies throughout California.