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  #41  
Old 08-16-2014, 06:19 PM
dc33 dc33 is offline
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Location: Indiana
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Quote:
Originally Posted by GearMonkey View Post
On the flip side, from his point of view, what if they are good clients but you're a bad or unprofessional business man and lose some of the good clients?

Not saying you are personally, but that is a risk the seller has on his end of the spectrum.

Food 4 thought
he should do his home work too.

Hes going to lose them regardless, hes not selling a brand, location, or tangible business. Just a list of clients.
A list if he went out of business today, the clients would have him replaced by Monday. They are worth 1/4 of what hes asking, and that's being generous.
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  #42  
Old 08-16-2014, 08:44 PM
oqueoque oqueoque is online now
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Originally Posted by sootonurford View Post
I will be getting a no competition clause for sure but my main fear is losing alot of customers right off the bat. Its inevitable to lose a few. You think his price is fair though?
What always concerned me, about buying out another company, is you can get a no compete clause, but there might be nothing preventing one or some of his employees from starting their own business and going after these accounts that you purchased. The customer might feel more loyal to them. The customer knows them, not you.
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  #43  
Old 08-16-2014, 11:51 PM
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RigglePLC RigglePLC is offline
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I think there is an advantage if your companies smoothly "merge". Do that in the middle of the season--when customers are less likely to shop around. Wear the same color shirts.
Next year his name mysteriously disappears from your stationery. Get new shirts.
A service business is worth about 3 to 4 times earnings (equipment is optional if you want to buy it).
Suppose his gross sales were $90,000--and he paid himself and his employees--$50,000, and his gas, overhead and expenses were $30,000; there is 10,000 left to call "earnings". Make him a reasonable offer.
Since banks do not normally finance something that they cannot repossess--he must self-finance the deal. If you don't have the cash, offer to pay him about $3000 per month until he is paid off.
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  #44  
Old 08-17-2014, 12:01 AM
oqueoque oqueoque is online now
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Originally Posted by RigglePLC View Post
I think there is an advantage if your companies smoothly "merge". Do that in the middle of the season--when customers are less likely to shop around. Wear the same color shirts.
Next year his name mysteriously disappears from your stationery. Get new shirts.
A service business is worth about 3 to 4 times earnings (equipment is optional if you want to buy it).
Suppose his gross sales were $90,000--and he paid himself and his employees--$50,000, and his gas, overhead and expenses were $30,000; there is 10,000 left to call "earnings". Make him a reasonable offer.
Since banks do not normally finance something that they cannot repossess--he must self-finance the deal. If you don't have the cash, offer to pay him about $3000 per month until he is paid off.
That's a great idea to do it mid season.
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  #45  
Old 08-17-2014, 09:33 AM
32vld 32vld is online now
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Quote:
Originally Posted by GearMonkey View Post
On the flip side, from his point of view, what if they are good clients but you're a bad or unprofessional business man and lose some of the good clients?

Not saying you are personally, but that is a risk the seller has on his end of the spectrum.

Food 4 thought
Does not matter if the buyer is a saint or rectum. You can not sell or buy customers. You buy a business and it's based on it's past economic history and it's assets. 10 year old Fords, 10,000 hour mowers, trailers that look as if they should be in a scrap metal pile are worth only so much.
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  #46  
Old 08-17-2014, 10:57 AM
Nj shade Nj shade is offline
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Buy then entire company meaning name, PO box, website, phone number etc. this way customers never see a difference
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  #47  
Old 10-07-2014, 03:49 PM
sootonurford sootonurford is offline
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Bump. Hes coming way down on the price and is willing to separate accounts/equipment. Hes now asking 40k for the accounts and im hoping to get them for half that. Has anyone had any success buying accounts?
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  #48  
Old 10-07-2014, 06:14 PM
slinky slinky is offline
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Join Date: Nov 2007
Location: upstate ny
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Quote:
Originally Posted by sootonurford View Post
Bump. Hes coming way down on the price and is willing to separate accounts/equipment. Hes now asking 40k for the accounts and im hoping to get them for half that. Has anyone had any success buying accounts?
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I bought accounts by giving 20% of the contract price. Im not sure how to make the work on a per mowing price. I only paid if i got the accounts too.
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  #49  
Old 10-07-2014, 06:21 PM
RussellB RussellB is online now
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I purchased accounts (5 years ago) by paying one months gross per account for mowing only. None of the ones I purchased had contracts and I still have all of them. Far less than what you are looking at.
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  #50  
Old 10-07-2014, 06:26 PM
32vld 32vld is online now
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Quote:
Originally Posted by sootonurford View Post
Bump. Hes coming way down on the price and is willing to separate accounts/equipment. Hes now asking 40k for the accounts and im hoping to get them for half that. Has anyone had any success buying accounts?
Posted via Mobile Device
$90,000 gross. What is his net? What can he prove on paper. No seller's word on how much his business grossed and netted can be believe.

Also you still do not know the quality of his customers. Meaning is he doing $50 lawns for $25. Soon as you raise these customers to $50 they will drop you faster then you can keep track off.

If I had $40,000 to spend I could have a super looking web site, advertise in two local weekly papers instead of just the one I am doing now, EDDM 100,000 addresses.
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