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  #1  
Old 05-14-2004, 11:33 PM
LSRLAWNS LSRLAWNS is offline
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Join Date: May 2004
Location: FL
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What to pay for a established lawn service ?

Does any one here have first hand experience with buying or selling a lawn service ? Was thinking of starting up a service again , but did not want to start from scratch. I know someone selling their service but wanted to get other points of view on it .
All of his customers are on a yearly contract, is 50% of monthly contracts a fair price ? I have had a service before so i am not worried about running the service or keeping up with the work right from the start, what do you all think ?
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Old 05-14-2004, 11:36 PM
specialtylc specialtylc is offline
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I would think so. I wouldnt sell my company for any less.
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Old 05-15-2004, 05:02 PM
jajwrigh jajwrigh is offline
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Location: Indianapolis, IN
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Do you mean 50% one 1 month? or 50% of 6 months?
If its the first one then go for it!
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  #4  
Old 05-15-2004, 07:11 PM
DiscoveryLawn DiscoveryLawn is offline
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Location: Dayton, Oh
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Is this an applications company or mowing?
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  #5  
Old 05-15-2004, 10:35 PM
LSRLAWNS LSRLAWNS is offline
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It is a mowing company. And as far as the 50% of contracts, it would be at least for 6 months , haven't really sat down with him yet to discuss numbers. Was hoping to get some feed back from you guys first. Just wanted to see what others had paid etc.... Thanks for any input you can give.
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  #6  
Old 05-16-2004, 09:00 AM
DiscoveryLawn DiscoveryLawn is offline
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Join Date: Jan 2004
Location: Dayton, Oh
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I bought a mowing company in 1999. I paid the price of 2 mowings plus the value of the equipment. I bought a fertilization company the same way this year. I paid for the price of two applications plus the value of the equipment.

About the mowing, I regretted paying anything for those mowing customers. For the price I paid for those customers I could have spent on advertising and got more customers. Mowing customers are just so easy to get around here I just don't think they are worth paying for. But, since you are a start-up, it may be a good way to get started while you getting your feet wet.

David
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  #7  
Old 05-17-2004, 01:12 AM
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bbone bbone is offline
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Make sure the previous owner signs a non-compete agreement so he can't take your customers back after he sells to you. I paid 1/2 year mowing, equipment and goodwill for my biz.
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  #8  
Old 05-17-2004, 05:39 PM
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Team Gopher Team Gopher is offline
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Hi LSRLawns,

Here is a post that should be helpful.

"Determining the value of a Mowing Business"
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  #9  
Old 05-17-2004, 11:37 PM
gr8cutter gr8cutter is offline
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Location: Tulsa OK
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I would not have any problems paying 2 months worth of service for good contracts. I would also buy the equipment if it is a good value.
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