Register free!
Search
 
     

Click for Weather
Reply
 
Thread Tools Display Modes
  #11  
Old 08-25-2010, 07:46 PM
1idejim's Avatar
1idejim 1idejim is offline
LawnSite Fanatic
 
Join Date: Jul 2009
Location: State of Jefferson
Posts: 6,892
Quote:
Originally Posted by FIMCO-MEISTER View Post
millionaires aren't walking around looking for irrigation businesses to buy and the people who are interested don't have any savings.
i could make airstream and pigtail jokes but, you and mike are part timers, doing what you want to do, traveling and pretty much enjoying life.

what'd you do right, what'd you do wrong and what would you do differently?

honest questions fimco, no bs.
Reply With Quote
  #12  
Old 08-25-2010, 07:50 PM
turfed turfed is offline
LawnSite Member
 
Join Date: Aug 2010
Location: MI
Posts: 24
I hope to answer that question soon. I'll post what i find out. The current owners are clients and family friends of mine. I trust them, but i'm not going to pay an arm and a leg for their "help and advice"
Reply With Quote
  #13  
Old 08-25-2010, 07:55 PM
FIMCO-MEISTER's Avatar
FIMCO-MEISTER FIMCO-MEISTER is offline
LawnSite Fanatic
 
Join Date: May 2007
Location: Red State America
Posts: 18,734
I wouldn't do anything different. If I hadn't gone through a gawd awful marriage I wouldn't have a daughter I absolutely adore.

Having said that I wish I had focused on service contracts. The reality is that you will slow down in life and you need to always be pushing your biz to gross more with less work. I was physically killing myself trying to work like a 30 year old at 50. The money was great but life sucked. The only thing I've really done different is to eliminate all the overhead in both money and time in my life so I can live on a whole lot less and enjoy it.
Reply With Quote
  #14  
Old 08-25-2010, 08:01 PM
1idejim's Avatar
1idejim 1idejim is offline
LawnSite Fanatic
 
Join Date: Jul 2009
Location: State of Jefferson
Posts: 6,892
great answer, pete
Reply With Quote
  #15  
Old 08-25-2010, 08:17 PM
Sprinkus's Avatar
Sprinkus Sprinkus is offline
LawnSite Bronze Member
 
Join Date: Dec 2008
Location: San Antonio, TX
Posts: 1,816
Quote:
Originally Posted by FIMCO-MEISTER View Post
millionaires aren't walking around looking for irrigation businesses to buy
Last company I worked for does exactly that.
Reply With Quote
  #16  
Old 08-25-2010, 08:18 PM
rlpsystems's Avatar
rlpsystems rlpsystems is offline
LawnSite Senior Member
 
Join Date: Jan 2009
Location: Virginia
Posts: 470
Quote:
Originally Posted by DanaMac View Post
BUT - what did it come with? Vehicles, tools, inventory, customers, employees?
Some of you know I've been wanting to sell mine. I've made spread sheets with inventory, 3 vehicles, 3 compressors, hand tools, electronics. 1500+ customers, 2 employees. I'm not going into numbers for gross sales or what I want to sell it at. But I like this discussion. Also, my gross sales and profits are up quite a bit this year, so what I wanted last winter is probably higher now
1500 cust. Thats awesome. Im dealing with 172 and going crazy....... You are the man. Long winterization period for ya?
Reply With Quote
  #17  
Old 08-25-2010, 09:32 PM
WalkGood WalkGood is offline
LawnSite Bronze Member
 
Join Date: Jun 2006
Location: Long Island, NY
Posts: 1,914
I'd look more at how much (realistically) the truck, tools and parts stock are worth, rather than the customer list. You can never "own" customers, unless they have a lifetime contract to stay as customers. To me a customer list is almost worthless.

Also you need a non compete clause with the old owners. You do not want them starting a new company or working with a competitor and taking the customers with them.
Reply With Quote
  #18  
Old 08-25-2010, 10:34 PM
DanaMac's Avatar
DanaMac DanaMac is online now
LawnSite Fanatic
 
Join Date: Mar 2002
Location: Somewhere in the state of CO
Posts: 13,071
Quote:
Originally Posted by rlpsystems View Post
1500 cust. Thats awesome. Im dealing with 172 and going crazy....... You are the man. Long winterization period for ya?
Well, we don't work on all 1500 in one year. We have 1500 in the active list, and I weed out customers every year that have not had service from us in 3 years. We do about 800-900 blowouts. Haven't reached that 1000 mark yet.

Weird thing is, I have one landscaper that we have been their service department for 10+ years, and this year he decided to do most of it in house and hired a guy. We did probably 10%-20% of what is usual for him. But my gross sales are much higher. I thought we'd be down quite a bit, but just the opposite. Partially because I was always giving him a discount due to volume. But I will probably not have his blowouts which could mean 100 less, but then again I can fill in other new customers at full price because I might not have his to do and more time available. Less blowouts - same gross income. Works for me.
Reply With Quote
  #19  
Old 08-25-2010, 10:54 PM
Sprinkus's Avatar
Sprinkus Sprinkus is offline
LawnSite Bronze Member
 
Join Date: Dec 2008
Location: San Antonio, TX
Posts: 1,816
In the market for my thoughts?
Well.......I think I burnt me finger.
Reply With Quote
  #20  
Old 08-25-2010, 11:27 PM
SoCalLandscapeMgmt SoCalLandscapeMgmt is offline
LawnSite Bronze Member
 
Join Date: Sep 2007
Location: So. Cal.
Posts: 1,473
You need to look at what you are really buying. The inventory is what it is. It's worth no more than you can currently buy it for so that's not a selling point. The vehicle and the equipment aren't worth any more to you than their depreciated value. Ask to see the balance sheet. Don't pay any more than what the depreciated value is listed at. Inventory, trucks and equipment aren't really selling points. You can go out and buy any of those things very very easily and with the current state of the economy probably very cheaply as well. The only thing that is of any value is the customer list and at that it's only worth a percentage of whatever it generates. If there are 1500+ names on the list but only 700 of them have paid for any kind of service in the last couple of years then the value of that list should be based on that. Like somebody said it's not like the current owner has a lifetime contract with all 1500 people on the list. The seller should have no problem giving you copies of any financial information that you ask for. Have an accountant and an attorney review everything and most importantly have an attorney draft the sales agreement.

People often have an over valued view of what their business is worth. The work many many years, sometimes for very little pay and so to them their business is worth a fortune when in reality it is worth much less. Also, never buy a company outright. Buy the assets and the intellectual property and form a new company with a similar name or make it a corp or a llc or whatever. You don't want to purchase somebody else's potential liabilities.

I've looked at buying companies in the past. I still haven't ruled out the potential of buying one sometime in the future but I do know that it would have to be one hell of a good solid deal before I'd part with any cash!
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump






Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 08:05 AM.

Page generated in 0.10453 seconds with 7 queries