How to Value a Gardening Business

Within a niche market like the landscaping industry, establishing an accurate company valuation is very important when you are considering buying or selling. Though the valuation process is similar for all business, there are some distinctions to note when determining the value of a gardening business.

Gardening businesses can be classified as anything that falls into the realm of horticulture; from seasonal retail greenhouse operations, to residential lawn care, to interior plant-scaping design for corporations, to urban farming.

Gardening businesses tend to be smaller in size and can incorporate several kinds of additional services throughout the year to meet the needs of each season. Therefore, a comprehensive evaluation process is needed to calculate a proper price point.

Adding Up Value

There are a few different common methods for valuing a business: the asset approach, the market value method, and the income technique.

Under the assets approach, company property falls into three categories: tangible, intangible and intellectual. Industry trends and sales history are analyzed to determine the business valuation using the market value method. When using the income approach to value a gardening business, you look at the company’s ability to generate an economic benefit. And all three methods take into consideration the company’s cash flow and the associated risk, as well as the size of business and the industry it falls in.

There is a lot of value that gardening business can provide depending on the services offered. These additional benefits, like consequently increasing homes’ property value due to superior landscaping, or enhancing productivity in the work place because of strategically placed plants and flowers, or even encouraging community development by expanding greenspaces and offering fresh produce, should be considered when negotiating a fair price.

A Helping Hand

When trying to figure out the value of a gardening business, things can get pretty complicated, pretty quickly. It is of the essence to enlist the expertise of a certified business appraiser to assist in the process. Certified business appraisers and brokers have numerous data bases, extensive records and precise formulas help determine the value of a businesses. Many Sunbelt Business Brokers are certified appraisers themselves, or have established relationships with other business valuations firms, ensuring they’ll find you the best price possible.

With over 30 years of experience, Sunbelt of Raleigh has provided dedicated business brokerage services for all of your business selling needs. Whether you are an established business owner nearing retirement and looking to sell, or an ambitious entrepreneur seeking your next investment opportunity, there is no reason to look beyond Sunbelt Business Brokers of Raleigh.