Considering selling - Is this company legit?
I operate a sizeable landscape construction business (no routine maintenance) in a very affluent part of California. I was recently approached by a company asking whether I’d be interested in selling the business.
They’re claiming the company could be worth 8x–12x net income after add-backs, which honestly seems extremely high to me. I’d happily sell at 4x net, so hearing numbers that high makes me skeptical.
Their explanation is that, because of the rise of artificial intelligence , blue-collar service businesses are currently trading at premium valuations since they’re seen as more insulated from jobs being taken by computers . Is there any truth to this? Has anyone here seen valuations in that range for landscape construction or similar trades?
They haven’t asked for any money upfront and say they only make money if the business sells, aside from a small fee for a full valuation report if I choose to move forward.
The company is called NowExit. Does anyone have experience with them, or advice on how to properly vet a company like this beyond just doing a basic Google search?