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Old 02-21-2010, 07:42 PM
Raymond S. Raymond S. is offline
LawnSite Senior Member
 
Join Date: Jun 2006
Location: Michigan
Posts: 904
LCO buyout. Take a look.

I am taking a look at purchasing accounts and equipment from another LCO. The list is as follows.

52" Snapper WB 100hrs (backup)
52" Snapper WB 300hrs.(main)
2 Echo BP blowers
2 Echo trimmers
'04 24' Enclosed w/ shelves,racks,etc
16' open w/ trimmer traps & sidegate
16hp Billy Goat loader
94 F250 gas 4x4 125k miles, dump bed, 7'6" Western
95 F250 7.3 diesel, 150k, 7' 6" Western
other miscellaneous blades,tools, etc.
20 accts. approx $50k gross last year. (under contract)
Been in business 23 yrs. Once had 350-400k gross, cut back over the last few years to concentrate on other home based business, less hectic, etc.

What are your thoughts on the value of this?
Thanks,
-Ray
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Old 02-21-2010, 08:10 PM
fool32696 fool32696 is offline
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Join Date: Jun 2005
Location: Somewhere in FL
Posts: 971
What is he asking? Are you already in business? Are accounts close to current routes? I'm thinking $20k for trucks/equipment and I'd offer $10k for contracted accounts. I wouldn't pay over $35k.
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Old 02-22-2010, 07:27 AM
Raymond S. Raymond S. is offline
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Join Date: Jun 2006
Location: Michigan
Posts: 904
Yes I am already in business. Fully structured and equipped for 1 crew. I could use the accounts, but don't need the equipment. I valued the equipment at $20,550 without knowing really what the 52" snappers are worth. I don't know anyone that uses them. The accounts are within a reasonable distance of mine. Some would let me open into other markets which could work out ok. If I am correct w/ the equipment estimate then he's asking a very small percentage of his gross for the accounts, far less than $35k.
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Old 02-22-2010, 01:32 PM
CLS LLC's Avatar
CLS LLC CLS LLC is offline
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Join Date: Feb 2008
Location: Colgate, WI
Posts: 371
I'd say under 35,000 is good. But alot of it is dependent on if you want/need the extra equipment. You don't need two trucks and two trailers for his 1 lawn mower and to gross $50k. But if your business can grow into the excess equipment quickly, then it wouldn't be a bad deal.

On the other hand you can always try to sell the truck and trailer you don't need and make some money back. Depending on condition you could do alright that way.
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