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View Full Version : Is This A Good Deal?


GUMSTUMP
04-25-2007, 10:12 PM
I AM LOOKING AT GETTING INTO LAWN CARE BUSINESS.THERE IS A BUSINESS FOR SALE AND THE GUY IS ASKING 22,000.00 FOR IT.IT HAS CONTRACTS THAT AE WORTH 15,000.00 PER YEAR.EQUIPMENT IS A FOLLOWS:'05 GRAVELY 48" ZTR,YARD MAN 22"PUSH MOWER,ECHO WEED EATER,ECHO BACKPACK BLOWER,PUSH SEED/FERT. SPREADER,36" PLUGGER. 6.5X14' ALUM.TRAILER.OTHER ODDS AND ENDS.ALL EQUIPMENT IS NOT MORE THAN A YEAR OLD AND IN EXCELLENT SHAPE.I KNOW I CAN BUILD THIS UP MORE THAN WHAT IT IS.JUST LIKE TO KNOW WHAT YOU PROS THINK ABOUT IT. I KNOW THERE ARE OTHER THINGS TO LOOK AT LIKE INSURANCE,UPKEEP AND COST OF RUNNING THIS STUFF.ANY ADVICE WOULD BE MOST WELCOMED.:usflag:

bohiaa
04-25-2007, 10:22 PM
I personaly have never liked the ideal of buying someone out like that.

But waht ya may wanna check is how long has he had these customers and are they ligit. But it seems a little high to me....
I would want my return back a lot quicker than a year....
But that's just me

fiveoboy01
04-25-2007, 10:27 PM
One problem you run into, is are YOU going to retain all these customers?

It really doesn't sound like a bad deal but be careful, check his books and be sure that's what the accounts are worth and take a good look at his expenses as well.

I for one just don't know about buying someone else's business. I'm not a financial expert though - perhaps someone can chime in who knows a little more about these things.

CkLandscapingOrlando
04-25-2007, 11:22 PM
I would not waste my time.Go get your own stuff and save some money.All the real big guys(multi state)use the buy out system to grow.But you would be spending alot of money to make it worth the money.100,000 or more to make any real money.Thats just me though.

GUMSTUMP
04-26-2007, 09:54 AM
THANKS FOR THE FEEDBACK, I WILL TAKE A CLOSER LOOK AT THIS.ONE THING I HAD FORGOT TO MENTION WAS HIS REASON FOR SELLING.HE HAS A BAD ROTATOR CUFF AND IT IS GIVING HIM A LOT OF PAIN.HE SAID THAT AFTER TWO OPERATIONS IT IS STILL NOT BETTER AND HE CANNOT KEEP DOING THIS.HE HAD JUST UPDATED ALL HIS EQUIPMENT AND HAD PLANNED TO KEEP DOING THIS FOR SEVERAL MORE YEARS,BUT NOW HE IS NOT ABLE TO CONTINUE FOR MUCH LONGER.HE SAID I COULD TAKE HIS BOOK AND PICK OUT ANY CUSTOMER AND TALK TO THEM.AS HE SAID HE HAS NEVER LOST A CUSTOMER DUE TO BAD SERVICE.THE ONE THING THAT STICKS OUT TO ME IS THAT IF HE SELLS WILL THESE PEOPLE WANT TO RETAIN MYSELF IN PLACE OF HIM,IF NOT THAT WOULD BE A MAJOR SETBACK AND LEAVE A LOT OF CATCH UP TO DO IN ORDER IN PAY FOR ALL THAT EQUIPMENT AND STUFF.AGAIN THANKS FOR ANY AND ALL ADVICE.HOPE EVERYONE HAS A GREAT DAY.:usflag:

Grits
04-26-2007, 11:09 AM
Please don't type in all CAPS. It implies yelling and it makes it crazy on the eyes. Welcome to the site! You will find a load of information here.

LTDLawnCare
04-26-2007, 04:58 PM
to me it seems way high, but i am no expert.

bohiaa
04-26-2007, 05:35 PM
THANKS FOR THE FEEDBACK, I WILL TAKE A CLOSER LOOK AT THIS.ONE THING I HAD FORGOT TO MENTION WAS HIS REASON FOR SELLING.HE HAS A BAD ROTATOR CUFF AND IT IS GIVING HIM A LOT OF PAIN.HE SAID THAT AFTER TWO OPERATIONS IT IS STILL NOT BETTER AND HE CANNOT KEEP DOING THIS.HE HAD JUST UPDATED ALL HIS EQUIPMENT AND HAD PLANNED TO KEEP DOING THIS FOR SEVERAL MORE YEARS,BUT NOW HE IS NOT ABLE TO CONTINUE FOR MUCH LONGER.HE SAID I COULD TAKE HIS BOOK AND PICK OUT ANY CUSTOMER AND TALK TO THEM.AS HE SAID HE HAS NEVER LOST A CUSTOMER DUE TO BAD SERVICE.THE ONE THING THAT STICKS OUT TO ME IS THAT IF HE SELLS WILL THESE PEOPLE WANT TO RETAIN MYSELF IN PLACE OF HIM,IF NOT THAT WOULD BE A MAJOR SETBACK AND LEAVE A LOT OF CATCH UP TO DO IN ORDER IN PAY FOR ALL THAT EQUIPMENT AND STUFF.AGAIN THANKS FOR ANY AND ALL ADVICE.HOPE EVERYONE HAS A GREAT DAY.:usflag:



That's what I was thinking too, sometimes Customers get used to a guy " not saying your bad " and dont like it when someone else shows up...

I kno I have a customer she only wants my Part time Employee to show up,,,,,
We have had hell with her and this guy I have hired calls her baby honey and stuff like that and he gives her a not so hot job and she loves him.

you may want to get an Attorney involved.

Lucky's Lawncare
04-26-2007, 05:47 PM
Well I am not an expert by any means, but this may help. I just purchased an existing business myself. The equipment is as listed below minus the truck. There are more odds and ends also. The business came with 22 accounts most of which the previous owner had for 5 years or more. The 06 taxes showed gross income of 55k, 05 52k, 04 48k, showing a profit of around 20-25thousand after expenses and employees. It was listed for 18k. I told them no freakin way and offered 10k. They took it when I sold them on the idea that there is no garantee that the customers will stay with me. They took the offer. The funny part is I kept all but 2 customers. But you certainly can't bank on that. I figured 60% retension best case.

Hope that helps.