How much are residential contracts worth?

[T.C.C.L.S.]

I have been in business for a couple of years and I am looking to get out at the end of this season to pursue another venture. I am going to sell the equipment and contract to the guy who I have employed this year but am uncertain to how much to charge. I want to be fair and not greedy but see that the company does have some value. I have:

2 toro commercial mowers
2 echo 260 weed eaters
1 ryan aerator
1 aries snowblower( new)
1 echo blower
1 4' x 8' Trailer

50 + residential contracts that range anywhere from $20 to $100 a week.

Could I get a couple or more expert opinionson what the value of my business
may be.

Thanks

[Team Gopher]

Hi T.C.C.L.S.,

When this has come up in the past, very little if any value was put on a collection of customers under contract.

[TSG]

I've sold some residential contracts in the past to a competitor who worked my area. We agreed on a one cut price (ie. if I charge $40 to cut the yard per week then I would sell it for $40).
As far as you equipment is concerned just make an educated guess at what it is worth. More then likely he won't have the cash to give it to you up front. You'll just have to work out a deal.

[MASTERMOWER]

Sell it for whatever the equipment it worth. I'd assume it all is like-new, so between $3.5K - $4.5K?

The customers are a different deal. When I sold my first business I sold the eqt. and then with the customers it was agreed upon that I would get a 3% royality on whatever the guy I sold it to made off my customers the first year ----- not a good idea! Personally I wouldn't charge a dime for them. He already knows the customers you have since he works for you....he could refuse to pay you and still he very well could retain all the customers. If you should really prefer some sort of compensation, then somewhere around $1000 is reasonable.