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  #1  
Old 09-08-2007, 12:27 PM
VAcutter VAcutter is offline
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Join Date: Sep 2007
Location: chesapeake,VA
Posts: 1
Looking to Buy

Guy wants to sell about 85 to 90 yards, 4 of which are commercial. He grosses around $3200 a week ( season in VA Mar to early Nov). He has a 3 year old 60" z master, a 1 year old 52" z master, 3 shindaiwa weed eaters 2 new 1 old, a 1 year old 36" walk behind toro pro line, 1 hedge trimmer, 1 extension hedge trimmer, a 16' trailer that will hold all the equipment, and a 1997 ford F150 fwd. He has contracts on three of the commercials and no contracts on the residentials or the other commercial. Not included in the $3200 a week he picks up hedge trimming and mulch jobs from his customers. I've been working for him about a year and know the route well, and most customers. He's looking to sell this between $50,000 and $60,000. He tells me that the customer loss will be between 25% and 30%. I feel he's asking to much. I think $30,000.00 to $35,000 is a more fair price. Any thoughts
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  #2  
Old 09-08-2007, 01:51 PM
fitzg2md fitzg2md is offline
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Join Date: Dec 2006
Location: Virginia
Posts: 156
Has maybe 25K worth of equiptment and truck, trailers. His average yard is about 37 dollars per cut. Not great, but acceptable. I wouldnt count on any contracts being renewed or whatnot. If they do great, but if not, dont bet on it...maybe something along the lines of:

With the sale of the company, the customer must sign a new contract for the coming year. you pay the man x amount for every customer that signs on. You pay nothing for ones that dont.

I think 30-35k is ballpark acceptable. Would need to get a feel for clientbase.
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  #3  
Old 09-08-2007, 02:31 PM
fergman fergman is offline
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Join Date: Aug 2004
Location: VA
Posts: 283
both of you are from virginia so thats great on hearing your guys thought on what the situation is but when i had that many yard (which i have more now). i was making about $1000 bucks a day. i dont know the situation about why hes selling out but dont be fooled if it doesnt sound legit. i know a couple of guys that bought a buisness here and they worked with him. what they didnt realize was that the owner priced yards too cheap didnt make any money,had a lousy reputation with the quality of work they did, they bought his used equipment that hadent been taken very good care of and is now totally screwed. and they paid a good chunk of money for it too. so basically what they did was buy a buisness from a guy that made no money,couldnt pay his bills on time,got his truck repoed, had trouble paying his help and couldnt never make it through the winter without the help from his wife. they have yards that are dirt cheap and dont make hardly any money. some yards probably even losing money on. now they got all that USED stuff, its bone dry, and if it wasnt and they COULD mow they wouldnt make any money anyway. he sold the biz cause he finally figured out that he would be better off working at a car wash every now and then just rinsing out the bays and getting a few bucks for it. OR MUCH better off working at mcdonalds. the guys worked with him and trusted him. he didnt just burn them on it,he setem on fire.
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  #4  
Old 09-08-2007, 02:36 PM
fitzg2md fitzg2md is offline
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Join Date: Dec 2006
Location: Virginia
Posts: 156
ouch...yeah definately look long and hard at the financial reports before considering anyhting. 3200 a week is 640 a day which isnt too bad if solo...if its with employees than not so much
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