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  #31  
Old 01-10-2014, 01:49 PM
TMlawncare TMlawncare is offline
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Location: nw missouri
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Quote:
Originally Posted by KS_Grasscutter View Post
Why does it take a handful of employees to generate 13k a month?
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Why would it not take a handful of employees to "average" 13k a month? I sure know I can not gross 13k per month in the winter solo. Crap I can not do 13k/month solo in the summer. For me it takes a handful of employees. If you can do it solo, share your secret.
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  #32  
Old 01-10-2014, 01:54 PM
TMlawncare TMlawncare is offline
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Quote:
Originally Posted by A. W. Landscapers, Inc. View Post
What about profit?
How much is the owner paying himself?
That would be net profit of the business = owners pay. At that point you can throw some back in the business account or your own accounts. Up to you. It all your money at that point says the tax man.
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  #33  
Old 01-10-2014, 03:36 PM
TMlawncare TMlawncare is offline
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Originally Posted by MasScape View Post
I could build a hell of a business quick if I had 240k or even 140k like OP is saying... I just dont see any value in contracts I didnt bid myself too many things can go wrong.... my 2 cents
We just purchased a company last year. It added 60 accounts to our operation. To us the accounts were everything. The accounts were the reason we purchased the company. The accounts are what puts money in the bank. Why else would you purchase a company? If I wanted more equipment I would buy it. If I wanted more employees I would just hire some. One concession I had to have was an agreement with the owner to help with the transfer of account throughout the course of the season. If the gross revenue drops below a set amount do to accounts being cancelled a reduction in the purchase price takes place. Overall at the end of the season 85% of the accounts transferred.
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  #34  
Old 01-10-2014, 04:05 PM
32vld 32vld is online now
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Quote:
Originally Posted by Nickduro View Post
The numbers he has supplied to me are all gross numbers. The 4 contracts he has with a year or so left are roughly $6500/month and $70,000 worth of equip.
You need to have the equipment appraised and wholesale prices because if you had to liquidate you would not get retail.

You have to get net numbers. Then if the net seams good. Then you must have your accountant not his go over his last 10 years records.

Without that info you can be taken. If this owner will not let his books be examined then what he is claiming is pure fiction.

Buying a business is not as buying a car. These things take time. He is rushing you then that is another bad sign. He does not want you to have the time to figure he is bending you over.
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  #35  
Old 01-10-2014, 04:08 PM
32vld 32vld is online now
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Quote:
Originally Posted by Nickduro View Post
All the equip is nice and he has two crews that run the mowing and 3 guys that plow and 3 that run around and shovel,snowblow and salt. I was thinking around 120k is that out of line for what's at stake here?
Only your accountant can answer that by examining the books for the last ten years. We do not see his books. You can not afford to hire an accountant to examine the books then you can not afford to buy the business.
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  #36  
Old 01-10-2014, 04:12 PM
32vld 32vld is online now
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Originally Posted by dieselfuel View Post
Get 3-5 years of his tax returns and a summarized equipment list. Give it to your CPA. Follow their advice. Also, the current owner could hire a consultant to figure value.
Only a fool will believe the sellers CPA, accountant, consultant. He is paying their salary not the buyer.

They have no loyalty to the buyer.
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  #37  
Old 01-10-2014, 07:52 PM
Nickduro Nickduro is offline
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Iam meeting with his accountant on Monday to get to the bottom of this and whatever is provided then is what my offer will be based on. Thanks guys for the input very helpfull.
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  #38  
Old 01-10-2014, 08:26 PM
32vld 32vld is online now
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Originally Posted by Nickduro View Post
Iam meeting with his accountant on Monday to get to the bottom of this and whatever is provided then is what my offer will be based on. Thanks guys for the input very helpfull.
You need your own independent accountant. Do you trust this seller? Then why are you trusting his guy?
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  #39  
Old 01-10-2014, 08:29 PM
32vld 32vld is online now
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For the money this guy wants you can buy from a new truck to a new broom and everything in between. Have a web site and all kinds of advertising. Pay yourself a salary for the first year.
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  #40  
Old 01-10-2014, 11:38 PM
Nickduro Nickduro is offline
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Iam bringing my accountant aswell, and no I don't trust him I will not be offering a number anywhere close to what he is asking I want to see what my accountant thinks about all of this and possibly not even offer anything we'll see what it brings
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