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Old 05-05-2011, 09:01 PM
authoritylawn1990 authoritylawn1990 is offline
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Help Bidding Worth of Other Lawn Business

I am currently working hourly to help a friend's lawn business who has other obligations. He wants me to buy the business from him(apprx. 20 weekly accounts at average of $30 per cut) as well as his equipment(2010 48" Toro Grandstand, echo blower/trimmer). I have heard many ways people price other lawn businesses when placing bids and want to know what has worked best for some of you. thanks
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Old 05-05-2011, 09:08 PM
mdlwn1 mdlwn1 is offline
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That business is worth the equipment and a six pack of beer......not kidding.
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Old 05-05-2011, 09:31 PM
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knox gsl knox gsl is online now
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I wouldn't give more than the value of equipment and a months worth of gross income.
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Old 05-05-2011, 10:04 PM
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PROCUT1 PROCUT1 is offline
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In a case like that its worth 1 to 2 months gross plus the equipment.

A much larger operation would be worth more.
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Old 05-05-2011, 10:04 PM
Will P.C. Will P.C. is offline
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Quote:
Originally Posted by mdlwn1 View Post
That business is worth the equipment and a six pack of beer......not kidding.
He isn't kidding.

The clients could all decide to dump you and find someone else once they find out the original owner sold. They may not like you or your work. Obviously, you will lose a few to moving, financial reasons, etc. What we are trying to say is that those 20 clients are not set in stone.

Do not let the guy tell you that you are guaranteed 20 clients.
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Old 05-05-2011, 10:31 PM
Grott Grott is offline
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I'd make an offer of the value of the equipment plus a percentage of the sales to his client list.

If he has the time to write a letter or personally make introductions it would go a long way in holding onto customers.

I think the 1-2 months gross would work in a year round market but would be high in my area. You can also sweeten the pot by buying the equipment with business income based on a payment plan kind of like a lease to own. If the business works you buy the equipment at x per month with a total of xx. Or you return the equipment and any payments to date are "rental" fees.

You can do all manner of things...but if you want the friendship to survive get it all in writing and be clear. Make it a win - win, he gets to move on and recoups some of his investment and you get a good start on a new business.

Garett
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Old 05-05-2011, 10:46 PM
mdlwn1 mdlwn1 is offline
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The reason 20 small accounts are worthless is because you could go handing out flyers and have 20 customers by the end of the month. I highly doubt it, but if said 20 customers were 10k and up in revenue per year...there would be something to talk about......possibly.
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Old 05-05-2011, 10:54 PM
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ed2hess ed2hess is offline
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And that is way too much money he invested in the mower.
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Old 05-06-2011, 08:30 AM
hackitdown hackitdown is offline
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Buy the mower at a fair price, and have him throw in the accounts. Otherwise, I'd pay $100 per account for those accounts who agreed to stay on.
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Old 05-06-2011, 09:56 AM
Darryl G Darryl G is offline
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I've looked at buying accounts before and after doing so it was readily apparent why the guys were getting out of the business....they were grossly under priced...all of them. Accounts are worth less than nothing if they're under priced!
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