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jordan7
05-26-2007, 02:41 PM
i'm interested in buying a lawn buisness from someone.he is asking for $32,000 for 76 accounts and a gross income of $8000 a month.this seams like too much money.is this worth that much?any suggestions would be helpful.

Trinity Lawn Care, LLC
05-26-2007, 03:30 PM
Is this just for the accounts or are other things included?

jordan7
05-26-2007, 03:33 PM
accounts and equipment.

Bill S
05-26-2007, 03:56 PM
What matters most is what is left at the end of the day?

How long to recoup your investment?

Trinity Lawn Care, LLC
05-26-2007, 04:41 PM
What matters most is what is left at the end of the day?

How long to recoup your investment?

This is true.

What is the equipment worth? What equipment are you getting? Is it just a mower or two, or are you getting the complete set up? Does it also include truck/trailer etc.

Is this 8k a month the gross total revenue of this business or is this just from the grass? Are you buying the company outright (meaning name and all)? If so, are there any judgments against this company or any liabilities that you are not aware of? I see that you are in Florida so I am assuming that this is almost year around (how many weeks)?

okeefl
05-26-2007, 05:02 PM
I can tell you from the sales I have heard of, the going rate around here is 2 - 3 times what the account is worth monthly, plus any equipment. So at 8k / month 16 to 24k would be about right for his accounts. Do some research into the accounts (verbal or written contracts), and make sure the customers are willing to keep you on. If you are serious about buying him out make sure you get him to sign a "No Compete Clause".

Bigray
05-27-2007, 07:03 AM
Hey Jordan7, if you decide not to puchase i would like the # for my consideration, been looking to expanding myself i have been looking for 3 weeks now and all have been to far away. tia for your consideration.

Bigray
05-27-2007, 07:30 AM
although their are several ways for a bus. to be valued, the buck stops with you!

1) 3-4 months of gross / plus value of equip.
2)50%of gross not sure if he incl. equip. x-tra
3) a broker seems to price them close to a years gross

get a training period
guarantee of the accounts
3-5 year non-compete on that client list
make sure their is a escrow acct. opened to insure all goes well.
any q? call me or post on here for all to learn.