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  #1  
Old 09-15-2014, 08:22 PM
Green Acres Mike Green Acres Mike is offline
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buying a business

Does anyone have advice on how much to pay for a landscape business. I've heard 3 months income and on the flip side don't pay for the clients.
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Old 09-15-2014, 08:36 PM
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CNYScapes CNYScapes is online now
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Depends on why you are buying? Are you starting out or just expanding?

Give a little more info on why you are considering buying. Ive done both, I have sold accounts and I have bought accounts.
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Old 09-15-2014, 08:49 PM
Green Acres Mike Green Acres Mike is offline
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I"m looking to expand my lawn maintenance accounts. I am currently 60percent install 40percent maintenance, but am looking to expand my maintenance accounts. The man selling has 35 weekly accounts and one new mower selling as a package. I've looked at all his lawns and my prices would be slightly higher but not much. He has spoken with a few of his clients and supposedly will all stay as long as the quality is there (which there is). His price is at the trade in value of the mower and 4 months averaged out of gross income.
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  #4  
Old 09-15-2014, 09:26 PM
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CNYScapes CNYScapes is online now
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My initial thoughts are that it is a little high. You are in a position where you dont need the accounts but you WANT them. For me I would not pay that much if I was in your position. You can advertise and pick up accounts for much less than that. On the other hand you are trying to grow quickly, and the immediate income will help you pay off the cost of the lawns.

If you are paying cash then you have leverage. If you are trying to finance then he will probably be more firm on his price.

In any scenario you should talk him down. Offer him 2 months gross and go from there.

FYI- I just sold 110 accounts and I got 3 months gross for them. Cash up front. If I had to finance then I would have wanted more.
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Old 09-15-2014, 09:31 PM
Green Acres Mike Green Acres Mike is offline
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thanks for your input, and yes I was thinking it was a little high also but wasn't for sure.
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  #6  
Old 09-15-2014, 11:36 PM
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TPendagast TPendagast is offline
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here we go with this one again
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  #7  
Old 09-15-2014, 11:47 PM
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KS_Grasscutter KS_Grasscutter is offline
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This late in the season I'd give a hunnerd bucks a piece for yards plus market value for mower. Then sell mower next Spring lol.
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  #8  
Old 09-16-2014, 06:45 AM
grassmasterswilson grassmasterswilson is online now
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I've heard1/3 yearly gross for mowing. The sticky part comes with working the deal. I just couldn't see myself paying all up front with zero guarantee the customer will transfer. Their current contract is not binding in a sell I wouldn't think.

Really depends on how bad you want it and if it fits your current base. Neighbors of clients you've had for years would be a better value that one 25 minutes away.
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  #9  
Old 09-16-2014, 06:55 AM
hackitdown hackitdown is offline
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35 customers at $50/week = $1750/week. Four weeks in a month takes you to $7000. Four months is $28,000 for 35 customers. You will likely lose several of them the first year.

How much money would it cost to do enough advertising to get 35 customers? Maybe $5000?

I'd offer him $100 per customer. Only customers that meet with you and sign your contract.
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  #10  
Old 09-16-2014, 08:16 AM
mowing4cash mowing4cash is online now
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I say 35 customers is not worth a lot of money. Only because you can do that advertising. This time of the year it is not worth more then a month gross of mowing only, do not include side work in that.

Now if he had 150 customers then it would be worth 3 months gross. Imo
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