sell route and equipt...

[richard]

someone told me that when guys sell their routes and equipt. the price is 3 months of what it brings in plus price of equipt. is this true?

[steven Bousquet]

i have bought 5 businesses and they are only worth what you are willing to pay. are they big spenders,fill in gaps in routes, you can sell add ons the other guy couldn't.then they are worth 5%-15 of the yearly gross or about one season net profit. at least that is what i have found. used old equipment is good for the junk pile and not much else, i don't get into the nitemare of buying used unless you need to fix things

[gusbuster]

At least in my area, San Francisco Peninsula, what you said is rule of thumb, though I hear some people are asking 4 months plus cost of equipment. <br>If your thinking of doing this, keep in mind these few things<br>You're going to loose some clients that you buy<br>It's legal to buy a business, but illegal to buy a route.---no way to really go to court if the seller steals the clients back unless you take this next step.<br>Make up a contract that specifically states that the seller cannot get back into your area and or within 200 miles of your location.<p>I had a good friend of mine get burned real badly because he did not take this last step. After an extended vacation from Europe, the seller called or visited his old clients and asked them to hire him back. Out of 246 clients, my friend lost 230 to the original seller.<br>John<br><p>----------<br>J-LC Landscaping & Maintenance Gardening<br>C-27 Ca Contr# 770044

[cutntrim]

I hope your buddy kicked that guy's ass, and I hope you helped him!<p>----------<br>Dave in S.Ontario<br>www.cutntrim.com

[nlminc]

LOL, No kidding, that guy deserves a trip to the chipper.

[DMC300]

SOMEONE DOWN HERE DID THE SAME THING WITH A MILLION-$$PLUS AIR-CONDITIONING BUSINNESS.SOLD IT TO THE GUY THEN BOUGHT ALL NEW TRUCKS AND EQIP.AND CRANKED BACK UP RIGHT DOWN THE ROAD! WHAT A DIRTY DOG!<p>----------<br>DON<br>LIANNES' MOWING

[grasscapeinc]

Offer to buy the accounts for 4 cuts apiece, and make up a contrqct stating the cust. will stay with you for 30 days, at which time the may continiue or cancel service. At least you'll get your money back that way, and have the chance toi prove you self.<p>Also include a &quot;competition&quot; agreement.

[bdemir]

I bought some accounts this year from three different people. I think it matters who and how much. Its not good to buy too much you have to be very very careful. Remember there is always a reason for selling. If its a good reason then its ok but if the reason is B.S. then be veary. You can get a bad deal and you can loose it all and you can get a good deal too but its risky unless you have all paperwork. Talk to a lawyer too. Good luck.

[DMC300]

<p>----------<br>DON<br>LIANNES' MOWING<br>

[lawrence stone]

Build you own accounts in the areas you want to work. Don't get locked into a bunch of loser jobs just to gain revenue.<p>Remember just to play in the mowing biz you<br>will need at least two of everything and<br>you better have it with you.

[nlminc]

I agree with Lawrence on that one. I have had people call to sell, but they are asking crazy prices. Why buy it when you can earn it!<p>Chris

[richard]

thanks for the posts...i am thinking about selling my company at the end of this season or maybe in the fall...the tax man bites and i want to buy a house and it is much easier to get approval if you are not out on your own...

[thelawnguy]

hey richard, whoever told you that is full of doodoo, as long as you pay your bills on time and you have the income to make the payments you will get the loan. It was easier getting the morgage last fall being self-employed than it was ten years ago with a major salary at a &quot;real&quot; job. As a matter of fact, I got my commitment three days after filling out the app, thats also with a LTV that would make you $#!t, to look at it you would think I didnt have a dime to my name but hey, excellent credit will get you everything in this world. As long as you pay your creditors on time dont worry about it, leave the clock-punching to the no-minds who like taking orders from the man.<p>Bill

[Bobby]

I've sold half of my work four times. If your on the buying end of the deal,you better be able to match or exceed the quality of work the seller is preforming.Low preformance is the quick way to unemployment. The new customers owe you nothing.<p>----------<br>Bobby <br>Ft Lauderdale

[tbird]

when i bought out a company i went to a lawyer had him right a no compete clause up that said the seller could not compete directly or indirectly for 5 years in the county no work for another company in the county. then i held 10 percent of the sale price 6 months after the day of sale. also made him cancal tax id number. then before i gave him the check i tape recored the whole deal on tape so i would have even more proff that we both agreed on the terms. also got every thing that was signed nortorized. so far everything has worked out well

[HOMER]

A frien of mine just sold 62 residential accounts, he also turned over the lease payments to the new guy. The other day I was still working at 6:00 pm and rode by the new guys house, there he was sitting on the porch waving............he just took on a load of work, picked up $700.00 worth of equipment, bought another truck and guess what...........his new customers think his work sucks. They are calling my friend to come back and do their yards again, he also signed a no compete claus, but only that he would not go after the customers he got rid of. The new guy has already agreed to let him have a couple back and there was no limit to how many he could pick up in the next county. If you can't do top quality work yet, don't spend good money &quot;buying&quot; your way into this business. Get it slow and over time, your also getting the experience you need as you grow. This guys going to lose his shirt. If you have to work til dark then by grannys you have to! Thats the name of the game! You ain't gonna get it done sittin' on the porch!<p>Homer