Originally Posted by clc2003
Thanks guys for your input. The reason he isn't selling his equipment is because he only has one ztr and he will use it for his acreage. As far as other equipment, it is all small engine stuff, push mower, trimmers, snow blowers, etc. I forgot to add we are also talking about his snow removal accounts as well as mowing. We have rolled the idea around about putting in one of his plow trucks in the deal. So there isn't any "excessive" amounts of equipment that would make me feel suspicious. I also came up with the idea of buying the snow removal with the truck this fall for X amount of dollars with exclusive rights to the mowing next spring. If customers are still there and willing to come over with me then we will seal the deal. Another perk for me is that he is willing to sell on contract. It works well for me and he is offering a lower interest rate. There is no early buyout penalty and I could also get rid of my old plow truck and get some money out of it with out spending it up front on another truck.
If it is merely the customer contract issue. I suggest buying out for the value of remaining contracts only. Not a dollar more than they are worth to him for this season. This way he can get out with his final payments in tact, and you can gain most, if not all, of his customer base for the next season. Providing they are as happy with you as they were with him. If he is committed to his new venture, he will not loose anything, and there is only the investment of guaranteed gross income for you. Win/Win.