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Thread: Ballpark figure

  1. #1

    Default Ballpark figure

    Ok. I am looking at an operation and wondering about the price so I thought I would post it here. I know there are alot of varibles here. 1400 hives, adequate supers, enough equipment to run 2,000 hives, 24ft International flatbed, Ford 1 ton, swinger, 2 72 frame extractors, guiness uncapper, cowan wax spinner, and everything else to run an operation. Main business is pollination but also some established honey sales. Equipment is all in good usauable shape. Whats a fair price?


    Thanks.

    Matt
    Columbia City, Indiana

  2. #2
    Join Date
    Nov 2004
    Location
    Camarillo, CA, USA
    Posts
    309

    Default Thought

    Pay for what you buy, buy what you need. Blue sky is blue no value.

    Have non-compete agreement on pollination contacts and honey sales. for a number of years.

    This business is in the blood, they all come back.

    Why are they selling, know this.


    Good luck,

    Larry

  3. #3
    Join Date
    Apr 2005
    Location
    College Station, Texas
    Posts
    6,973

    Default

    several things to consider...

    first like lspender suggested a 10 year non competition clause in the contract by the primaries and their direct familys would be essential...

    next... I would want to see the income generation of the business (is it trending up, down or fairly flat) for at least the last 3 (preferrable 5) years. a quick look at the depreciation schedule should tell you something about the value remaining in the equipment. at some point in time a depreciated bit of equipment means added repairs.

    look hard at what kinds of pollination has been performed in the past... does this history suggest future problems?

    and finally and most important... location, location, location. what and where are the locations for keeping the bees during and between seasons. although this is the hardest quality to place a value on, it often represents the largest potential value.

  4. #4
    Join Date
    Jan 2003
    Location
    Manitoba Canada
    Posts
    5,837

    Default

    >>price

    >>1400 hives,

    200000$-300000$



    >>adequate supers, enough equipment to run 2,000 hives

    250000$-300000$


    >>24ft International flatbed,

    4000$

    >>Ford 1 ton,

    Good choice! 15000$-20000$

    >>swinger,

    15000$used-30000$new


    >>2 72 frame extractors,guiness uncapper, cowan wax spinner,

    I wouldnt pay anymore than 5000$ for both extractors, no more than 5000$ for uncapper. Old spinner, 500$-1000$
    Might as well purchase a new cowen system. 60 frame 30000$-40000$ depending on what you get. Finance over 10 years and it makes for cheap effortless extraction.

    >>everything else to run an operation.

    Hard to figure, you need pails, excluders, blowers , pallets trollies, ect, ect ect

    10000$- 20000$ for sure,


    >>Main business is pollination but also some established honey sales. Equipment is all in good usauable shape. Whats a fair price?

    your figuring is better than mine, you have seen the operation.
    also remember, purchasing an operation includes sites, contracts and conections. Those are sometimes priceless becasue they take a life time to establish.

    Dont get over your head, make sure you know how to run it before you jump in.
    IF you dont get the work done, or properly, you will loose everything! Especially if your borrowing 1/2 - 3/4 million $
    Ian Steppler >> Canadian Beekeeper's Blog
    www.stepplerfarms.com

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