View Full Version : Buying a Landscaping Company
08-24-2009, 03:12 PM
Hey there guys. I am new to this site and I love it. Lots of good information here. I was looking into buying an established landscaping business that has residential and commercial contracts. The contracts have been renewed this year for 3 years (commercial, not sure about the residential). They do about 100 cuts/week. Besides the obvious in terms of revenues,expenses, employees, what other questions should I be asking (pertinent to the landscaping business). Is there is place where I can get more information? The more I read these threads the more there is to learn. Any comments/questions/criticism welcomed.
08-24-2009, 03:55 PM
Ask if any accounts have any liabilities with the company and verify that with their insurance agent.
08-24-2009, 04:39 PM
find out how tight (or not) the routes are
08-24-2009, 04:46 PM
Non-compete contract, make it so he cant change his mind and go back to all your customers and tell them he is back. He might have established a relationship with some of them and they might be willing to take him back over the new guy. Then just the obvious questions, you might want to ask about any tax issues too.
Are you getting equipment in this deal?
08-24-2009, 10:35 PM
Get with an attorney and a CPA and go through contracts and books. An attorney can draw you up a no compete agreement. CPA can make sure all is right with his numbers. If the guy isn't cool with that then walk away.
08-24-2009, 10:53 PM
Thanks for all the helpful information. There is equipment which is all relatively new and paid for. I will definetely get a lawyer and a non-compete clause. I am however worried about the employees. What is some of them decide to leave after several months, where do I find someone with the experience in the right amount of time so that I don't lose any work. Is there any incentive that you give your employees to make sure they do not leave? There area lot of hispanics workers in the area and some just go to the highest payer.
08-24-2009, 11:11 PM
Not sure about the employees, don't have any. One thing to look at with them may be no competes also.
09-22-2009, 02:40 PM
Taking over a company with its employees is always tough because they do the work and know the routes. Same goes for them though, the drivers/supervisors should all have no-compete contracts as well. All my drivers sign one within the first week of employment. Until you get in there and know the business of your future company your gonna have to put up with alot of crap from these guys. Once your in and know whats going on then you have the upper hand. But I say as long as there cool and just want to work, then keep them happy to a certain extent. Ive learned one thing in all my years in this business, They make me more money than I could going at it solo. I get frustrated with them probobly as much as I frustrate them, but Im real happy when I cash my check!
09-22-2009, 07:50 PM
MAKE DAMN SURE....The debt STAYS with the Debtor.... and DOES NOT follow the Company
vBulletin® v3.8.6, Copyright ©2000-2016, Jelsoft Enterprises Ltd.