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  #21  
Old 02-09-2013, 03:13 AM
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JContracting JContracting is online now
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Join Date: Oct 2011
Location: Champlin, MN
Posts: 1,628
Subscribing. I saw the listing for this on craigslist, I found another in Elk River that I'm going to call tomorrow.
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  #22  
Old 02-09-2013, 08:09 AM
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CowboysLawnCareDelaware CowboysLawnCareDelaware is online now
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Join Date: Nov 2012
Location: DE
Posts: 464
The equipment isn't overkill, the 2003 60" is a full-time back up mower and when your on the large commercial properties you can break out both 60's to get the job done.

-Michael
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There is an Old Blue Chair for each and every one of us, we just have to find it.


2006 GMC Sierra 2500hd crew cab
BOSS 8'2" Power V
Hustler X-one 60"
Toro Proline 36" wb w/t-bar controls
JS46 22" walk-behind (wouldn't recommend)
Shindaiwa T254, Echo trimmers, chainsaws, pole hedge trimmer, pole saw, hedge trimmer
Shindaiwa 633 and Husqvarna 130BT blower
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  #23  
Old 02-09-2013, 08:16 AM
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clydebusa clydebusa is offline
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Join Date: Feb 2010
Location: Tulsa Oklahoma
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Quote:
Originally Posted by roeslandscaping View Post
They way i look at, from my mistakes in the past, is to buy the equipment. Dont pay for the accounts right away. Because you arent promised the lawns. If you get the lawns he offers, i would pay him a certain percent for the first month. I Just recently bought a snow removal business, and i paid for the equipment and nothing else. I told him that if i get the accounts, he can have 25% of what I make from those accounts the first year.
This is what I do also.
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  #24  
Old 02-09-2013, 08:25 AM
dnc19694339 dnc19694339 is offline
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Posts: 208
equipment + 1 months earnings is a great deal for the buyer.
Not so much for the seller.

I dont know about you guys but I would NEVER sell my accounts for 1 months earnings. Just my opinion but I think that is ridiculously cheap!!

I have bought out 3 competitors in the past 10 yrs. I paid around 2 months earnings for two of the biz and 3 times for another and I still think these were cheap, I would buy them all day long at that price!
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  #25  
Old 02-09-2013, 08:44 AM
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clydebusa clydebusa is offline
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Location: Tulsa Oklahoma
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^^^ I understand what you are saying but in the Tulsa area this is about the best you can hope for.
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  #26  
Old 02-09-2013, 08:50 AM
djagusch djagusch is online now
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Join Date: Mar 2006
Location: MN
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Quote:
Originally Posted by dnc19694339 View Post
equipment + 1 months earnings is a great deal for the buyer.
Not so much for the seller.

I dont know about you guys but I would NEVER sell my accounts for 1 months earnings. Just my opinion but I think that is ridiculously cheap!!

I have bought out 3 competitors in the past 10 yrs. I paid around 2 months earnings for two of the biz and 3 times for another and I still think these were cheap, I would buy them all day long at that price!
True to a point.

You as a seller don't want to sell so you would want higher dollar. If a seller wants out then he is going to take what is offered, unless he wants to keep them. The buyer wants to offer just enough for the guy to sell, not any more.

Other thing is in this case the buyer has no other accounts to help spread the cost of the loan or been in the biz to be most efficent. He's going to be paying $600 plus a month for the orginal $40k loan for the next 5 yrs which is going to be a major drag on the company until its paid. The equipment will need major repairs or replacement over the 5yrs which will be hard to keep up with.

Best case senerio would be buy it see sales double and then should be able to get out of the hole. I just see the loan and the buyer being used to $40k income (his current job) having a hard time being net positive especially if he keeps the employee around for $17/hr.
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  #27  
Old 02-09-2013, 09:22 AM
dnc19694339 dnc19694339 is offline
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Quote:
Originally Posted by clydebusa View Post
^^^ I understand what you are saying but in the Tulsa area this is about the best you can hope for.
Right, Every area is different.
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  #28  
Old 02-09-2013, 09:37 AM
danillac danillac is offline
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Join Date: Feb 2013
Location: chaska mn 55318
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what part of the country do you operate out of?
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  #29  
Old 02-09-2013, 12:22 PM
dnc19694339 dnc19694339 is offline
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Im in New York
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  #30  
Old 02-09-2013, 03:15 PM
zimmatic zimmatic is offline
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Join Date: Dec 2007
Location: Minnesota
Posts: 393
Here is a thought

If you where to take the 60K and spent it on advertising would you be able to secure the same amount of accounts as what the seller is selling? Or spend even 30K on advertising and 30k on equipment. If you think you cannot then buy the company. If you think you can then do so close to where you live/opperate vs traveling 45min accross town.
If I was in your situation I would not buy the company from what has been discussed on this thread.

Or if you are set on buying then arrange a face to face with your check book out haveing him see you write out the check with the only thing left is the amount, and drive the price down as I would not want you to spend anymore money than you absolutly have to.
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