What should it cost?

[pushu2]

I have an oppertunity to buy an established lawn mowing and plow service with 187 customers on the lawn side, mostly residential. What would be a good offer to make for the customer base as well as all equipment needed to service them?,

[EZTarget]

Originally posted by pushu2
I have an oppertunity to buy an established lawn mowing and plow service with 187 customers on the lawn side, mostly residential. What would be a good offer to make for the customer base as well as all equipment needed to service them?,

a hole bunch

[EastProLawn]

Too many variables !

Sizes of yards ?

Amount of $ per yard

Any equipment coming with the sale ?

and many more ??????????????

We need more info.........................................

[PMLAWN]

Are the customers on contract or can they leave? Make sure that seller does not compete. Can you handle a business this size? Do you want to? Have seller open the books to you and check for profit. Why is he selling? 187 customers at $10 each when it costs $12 to do them is not worth anything. Dig deep into the numbers and if anything looks fishy---run.

[Team Gopher]

Hi Pushu2,

Here is a helpful post.

Determining the value of a Mowing Business (http://server2.lawnsite.com/showthread.php?s=&threadid=59167)

[boonhogganbeck]

You should consult with your CPA and attorney when buying out a business. Some CPAs also carry the certified valuation analyst designation (I think that's the right terminology). Anyway, they're experts at valuing businesses and many specialize in small business transfers. The value of the business encompasses much more than net assets, gross revenues or net income. Also to be considered are intangibles such as future earning potential, reputation, value of the business trade name, etc. Also, how are they incorporated? Is it a sole proprietorship, single member LLC, or a corporation? Is this an asset sale or would you buy out his corporate stock or his LLC? Are there any judgements pending against the business entity? Also, you should probably have a non-compete provision in the contract as well. Consult your attorney on this.

[tiedeman]

I was just going to say the same thing, talk to an accountant to determine the value of everything, and then talk to a lawyer to handle all the legal aspects

[pushu2]

Thanks to everyone for sound advise.