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Old 06-21-2013, 10:13 PM
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Schrock Lawns Schrock Lawns is offline
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Buying business?

Looking at purchasing a business and wanted y'all's opinion. It includes Coustomers and clients about 40 clients totaling 105k a year roughly. Equipment is worth about 10 k so hes asking 30 k for clients 24 of them are year round clients totaling about 50k a year. I've rode with him the past week and seen all accts. is he asking too much for accts or no? Any opinions apriceated
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Old 06-21-2013, 11:02 PM
GOATMAN GEORGE GOATMAN GEORGE is offline
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He wants 30k of a 105K a year gross revenue? That is a pretty fair deal IMO. Our company bought out about 30 accounts at 27% and would never even think twice about pulling the trigger on that type of deal again. You have to bear down for the first year while you pay it off, but it is a huge stepping stone once you pay off what is owed.
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Old 06-21-2013, 11:04 PM
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RSK Property Maintenance RSK Property Maintenance is offline
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Quote:
Originally Posted by Schrock Lawns View Post
Looking at purchasing a business and wanted y'all's opinion. It includes Coustomers and clients about 40 clients totaling 105k a year roughly. Equipment is worth about 10 k so hes asking 30 k for clients 24 of them are year round clients totaling about 50k a year. I've rode with him the past week and seen all accts. is he asking too much for accts or no? Any opinions apriceated
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well first i would want to know exactly how he got to the 105k a year, is that in just maintenance that gets done every single year, like mowing, shrub pruning, mulching, clean ups, or is that with him doing extra work, for the clients. because that could make a huge difference, also is that 105k profit or is that just straight revenue from the customers. sounds cheap....but gold pro would know more...
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Old 06-22-2013, 07:20 AM
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Schrock Lawns Schrock Lawns is offline
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105 is net the year rounders don't have mulch in their contract. That's why last year he payed himself 29500 business profited 30 and the 45 in expenses was one a500 a month truck payment and two he was taking draws here and their so that's another 6 k so expenses were really around 30-33k ish
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Old 06-22-2013, 07:24 AM
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Schrock Lawns Schrock Lawns is offline
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And mowing last year it was 80 he brought in 25 in extra work
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Old 06-22-2013, 07:26 AM
ExmarkBoy ExmarkBoy is offline
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Without seeing financial reports, it sounds high to me. I would at least negotiate down to 20k - 25k.
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Old 06-22-2013, 08:40 AM
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MOturkey MOturkey is online now
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Originally Posted by Schrock Lawns View Post
And mowing last year it was 80 he brought in 25 in extra work
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I think it would be wise to base your decision on this figure, as the extra is not guaranteed, unless it is for contracted, routine services.
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Old 06-22-2013, 08:54 AM
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Schrock Lawns Schrock Lawns is offline
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By extra work I mean annuals and mulch not like installing stuff so the extra work is pretty mug garentedd
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Old 06-22-2013, 09:33 AM
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Golfpro21 Golfpro21 is offline
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I would cover your arse and never think anything is 100% guaranteed in this situation, there will be clients that cancel or change their program etc
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Old 06-22-2013, 09:53 AM
herler herler is offline
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105k sounds more like gross if he's only paying himself 29.5 and that's hardly the tip of this huge pile of poo I'm starting to smell.

Last edited by herler; 06-22-2013 at 09:59 AM.
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