Looking to buy a business, what do you think?

[Oasislawnman]

I am in talks with someone to buy their business. They have 22 accounts and they generate about $36,000 a year in business. He has a Toro 62 inch Z-turn that he bought in 2000, he has a 7x14 non-enclosed trailer, 2 older riding mowers, 2-21 inch push mowers, 2 weedeaters, 1 edger, 2 hedge trimmers, and a blower. The equimpent is rather old. He is asking $15,000 for it.
He will give 2 months of consultanting.

What do you think?

[thill]

No way is it worth $15K

Don't pay more than two months revenue for the accounts and 10% of the cost of the old equipments.

Buy the equipment up front (@10 cents on the dollar) and pay out the rest based on actual revenue over a short period of time.

[Scagguy]

Maybe 5K at best. At 15K this sounds like you're buying it from a used car sales guy.