Well...It's Been Fun!

[Ground Pounder]

A guy who works with my dad at a golf course was thinking of starting his own business. My dad told him of my company. This guy wanted to come up and see my equipment. He really liked the Exmark mowers. He asked about my accounts. Three days later he made an offer to buy my company. I could not pass up what he was offering!!....He even took the truck!

With what I made, I will probably start another service.


Thanks to all.......I'm outta here!

[Eric ELM]

What kind of service are you going to start? Just because you may not be mowing grass for a living, we can still coax you along as a homeowner mowing grass. :D

Good luck in what ever you do and keep in touch with us LawnSite members.

[crazygator]

Well I'm glad you did so good. Can I borrow sone money? hehe. Good luck with your future, and dont spend all your money in 1 place.

[awm]

you never know when that good break is coming.
hope you know how to have money instead of just how to spend
it . my sweet sweet wife has only one weekness. if its there it has to be spent. this is one situaation where its necessary for the right hand not to know what the left hand is doing.
good luck to youTM

[lawnboy82]

just curious, how many accounts did you sell him?

[1MajorTom]

You were already thinking of selling?

Or did this just happen spur of the moment?

I'm not trying to sound stupid, I guess I'm just curious here. Obviously the guy had to be getting a decent deal on the ExMarks and truck or he wouldn't have bothered buying used, he would have just bought new. So how much profit could you have made on those items?

And being a newer company yourself, how many accounts did you sell him? Were your accounts yearly, or pay by the cut? Because I just don't see how it would be profitable for him at this time of the year to buy accounts when the weather has been so dry lately unless he was buying into the rest of the yearly contract?

Of course I don't know the details of your business transaction, but I think this guy who bought your stuff just made himself a bad decision.

Any new company couldn't have been showing much profit their first year. Why in the heck would he buy someone elses startup when he could have just waited for the ideal time to start a new business which would have been early next season. :confused:

[Ground Pounder]

I am not sure why he just didn't do his own startup. Maybe because he is going to do this full time and needed the accounts.

I itemized everything for him.

2001 Dodge Ram 1500 4X4
2001 International 5X14 trailer
2001 Exmark 52" TTHP and a Proslide sulky
Exmark 36" Metro HP
Trimmer,edger,hedge trimmer, blower, Crapsman push mower
and all 22 of my accounts who are on a weekly cut schedule.

Take all of the business liabilities and debts, multiply that by three. Thats's what I made :D

Life is Good!

[1MajorTom]

Just don't understand.

None of my business, but at this point I am intrigued.

9,000 in equipment minus 5 months depreication.
Estimate price on truck would be $35,000 minus payments already paid

Roughly $37,000 in equipment/vehicle?

$37,000 times 3??

So he paid $111,000 minus $37,000 = $74,000 for 22 accounts?

Help me figure this out! My numbers seem in the ballpark.

Why would he pay this much for 22 accounts???? Even if my estimates are off by 10,000, that would leave him paying 64K for 22 accounts which hold no guarantee.

[eslawns]

With what I made, I will probably start another service.

And the lesson for the day is?

If you buy a business, get a non-compete clause. Otherwise the guy who sold may come along and take away all your clients and use the money you gave him to run you out of town.

[Ground Pounder]

:angel: I guess it's just an episode of "Touched By An Angel":angel:


Your numbers are not too far off.

[Ground Pounder]

There is a no-compete clause. I didn't say I was going to start another lawn service. I may go into starting various businesses and selling them. Seems to work well....:p

[Lawn-Scapes]

Especially Jodi's :)

I guess it's true what they say.. There's a sucka born...

If he got $100k... good for him! But I don't think so...

[KirbysLawn]

I'm currently bidding on 5 lawns in a very nice new area in south Charlotte, all were maintained by a company that sold out to another. All 5 are looking for other options and bids and do not plan on keeping that company that bought these accounts. Shows what buying accounts will get you.

I'm with Jodi, that guy gets the STUPIE award for making bad business choices. Good for you...bad for him.

[CMerLand]

Major Tom

I think one number you may be off on was for that dodge 150 truck. I think the number on that truck is much closer to 25,000 then 35 K. Multiply that by 3 and you have 30 grand there. All in all though you are right, whatever he bought which wasnt much was a horrible business decision.

Anyone who would buy a company based on what it owes rather then what it earns is an idiot. Even then what you are buying is the profit potential from this route which with 22 accounts, cant amount to a great deal unless these are great accounts.

Pounder you better run not walk to the bank in the morning, although I believe by law he will have 72 hours to cancel the contract.

[Lawn-Scapes]

Speaking of banks...

What bank would approve such a loan? What about his lawyer... wouldn't he have sense enough?

[AltaLawnCare]

Wonder if this deal has actually gone through yet? If the guy is relying on a loan, he may be in trouble.
On the other hand, maybe he came into a lot of money, or made a lot, and needs a big tax write off.

[Guido]

Something ain't right here!!

Thats whats so great about the internet you can always top what you've heard yesterday!