want to buy lawn busniess whats it worth

[Bethelboy]

A friend of mine has moved away and got a new job. He has 90 active accounts and he is grossing $100,000 from april to end of oct. There is no equipment in the deal just lawns, none under contract. I have a lawn care busniess myself and can do the extra 90 yards ...i Just wondering what yall might think its worth?

[ambersLawnmowing]

With out Signed contracts and No equipment. You are basicly buying a list of names that may want lawncare. That isnt worth anything to me. Maybe case of beer if he is a freind. Just my 2 cents

[newtostone]

If your friend is willing to meet and talk with his clients and explain that he is trusting you to take over these account and they are open to that then about $20,000 max.

Just think what does it cost you to advertise and bring in 100 clients, and clients that aren't just shifting to trying a lawn care service for one year but people who just want it done and done right.

[FourTrees]

5-10% for one year. He gets paid as you get paid.

[Bethelboy]

well he sent out a letter to all his costumers saying that we are going to be taking over the lawns without even talking over a price with us first...so about 30 of his clients have already talked to me and want us to mow for them....he is in a place where he cant quit his new job..so do i have in a place where he has no other choice than to sale me what i ask for....What if prices it at $50,ooo...tell him to take a hike

[Ric3077]

sounds like the wagon is before the horse...

[dewos]

Sounds like he already gave them to you would give him some money but nothing huge.. I would only pay for the jobs you accually pick up. Maybe 1,500 for every 10 new clients.?

[newtostone]

50k is way to high you need to work it off net not gross. And get a hold of the rest of the customers asap. The sooner the better you want them to feel as if this is a blessed and graceful transition. Not like a makeshift deal, that only makes you look bad. They already know who your friend is.

[ExtExc]

way too high. in this business, it depends on whether he can sell them and guarentee their loyalty which is highly unlikely. they could drop you after this year, they could never even sign up, and lastly those accounts are available now that he is gone. why pay for them? your paying for his contact list basically, without the guarentee, imho they arent worth much. say gross is 100K , and you only have 30 of 90 guarenteed, so thats 33K gross (completly rough number). i would want at least some sort of contract, that makes the sale price contingent upon signing up those customers. X amount down, and X amount for so many accounts thereafter. This makes him help you retain the customers, not just collect his check and walk away. Whatever you pay, that is coming right off the top of your gross, as an expense. If these customers do not stay with you for multiple years, thats a very large gamble.