Aquiring new Accounts

Discussion in 'Business Operations' started by Rodney Anderson, Mar 3, 2001.

  1. Rodney Anderson

    Rodney Anderson LawnSite Member
    Posts: 80

    I have been approached about buying 120 accounts from another company. Chemical turf care. The 2000 season generated $ 24,000. The owner says make an offer. Does ano-one have an opinion? Buying just accounts, no equipment.
     
  2. mouse

    mouse LawnSite Member
    Posts: 98

    ?? are u getting 24000.00 or paying 24000.00 sound like 24000.00 per season devided ,by120 accounts =200.00 devided by 31 cuts per season = $6.45 per cut per account ?? is that right ? let me know if i made a mistake??
     
  3. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,073




    Chemical Turf Care sounds like a fertilization company to me.
     
  4. OBRYANMAINT

    OBRYANMAINT LawnSite Senior Member
    Posts: 555

    i don't do much chemical apps but it sounds like its a small bus.....possibly worth a small bit

    120 customers..4 apps each(approx)......480 apps

    24000..divided by 4800.....50.00 per app

    guessing residential yards

    if you can get it cheap, would be worth the investment,low overhead,...........of course after you take out labor and materials seems like there would not be a lot of pfofit

    but for a few grand to buy would be worth the gamble to me
     
  5. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Posts: 1,415

    Are you buying contracts?? If not I would only offer half of what is generated for a year. Plus I think that $24,000 is profit if so then you can throughout all the previous numbers for prices and turn them into profit per appl.
     
  6. guntruck

    guntruck LawnSite Senior Member
    Posts: 527

    I would ask to see the books and like lonestar asked are you buying the contracts? Is there any multi year or just seasonal? Get all the info you can before even coming close to a decision.
     
  7. Rodney Anderson

    Rodney Anderson LawnSite Member
    Posts: 80

    These accounts are for fertilizing. I have seen the books and they look lagit. But the guy who has them wont say how much he wants for them and have not been able to gat an idea from anyone what to pay for them. Thse accounts are not mowing. Fertilization only. $ 24,000 is gross revenue.
    I was thinking a certian amount for each account or should it be on the gross sales? Im very much interested in them because the current owner is not practicing IPM and going overboard with the chemicals and usind Anderson products which are way out line for the lawn care industry. Im able to turn a 67% profit on my accounts and Im looking to it on these also. I just dont want to look a fool when approaching him.
     
  8. Atlantic Lawn

    Atlantic Lawn LawnSite Senior Member
    Male, from Outer Banks NC
    Posts: 940

    After you look at the books keep one thing in mind. He doesn't want the business anymore or the company. You have what he wants..... Cash ! If you do bargin with him keep that in mind.
     
  9. joshua

    joshua LawnSite Bronze Member
    Posts: 1,226

    good point atlantic lawn,,, rodney go through his books and make sure everything is set up good, and try and see if you do buy the business off him if the customers will stay. unless they are under contract. you wouldn't want to lose customers from him if there not under contract. also, make sure you include all of the survices that he includes if not your gunna have to be trained in what you don't know.just trying to help good luck .
     

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