Boss is selling out, is the price right?

Discussion in 'Starting a Lawn Care Business' started by pistolgripnova, May 19, 2013.

  1. pistolgripnova

    pistolgripnova LawnSite Member
    Posts: 13

    Hey yall,

    I was looking for some insight from somebody who knows the business better than I do. My boss has decided to sell out and he is giving me first shot at the company. I was just looking for a second opinion, heres how the numbers break down...its roughly 150 accounts with about $10k per month in regular maintenance during the season, $20k in fertilizer/chemical, plus some xmas lighting, tree jobs, and fall clean ups. He is asking $17k, didnt sound bad to me but I havent been down this road before, any input is appreciated.
     
  2. StrokerTurbo7.3

    StrokerTurbo7.3 LawnSite Member
    Posts: 150

    Does that include equipment? If so that sounds like a deal.
    Posted via Mobile Device
     
  3. pistolgripnova

    pistolgripnova LawnSite Member
    Posts: 13

    No equipment, that is just for the business side of things
     
  4. pistolgripnova

    pistolgripnova LawnSite Member
    Posts: 13

    I am looking at buying some of his stuff and some new stuff, with equipment and trailer it would be $23k. The existing equipment I would buy is the 16ft trailer, toro 50" timecutter, 2 honda hrc216, and a billy goat. The invoice totals for last year were about $125k.
     
  5. TaylorLandscapingLLC

    TaylorLandscapingLLC LawnSite Member
    Posts: 101

    I say do it. If you are currently working for him, you should know better than any average joe what the business is doing weekly, monthly, and yearly. that takes out the risk of "is it what he says it is". even if only 1/2 of the accounts stick when you took over, you would still be cranking out a massive amount of business for a first year owner. If I were in your position I would go for it knowing what you know about the reasons hes getting out, and what the business actually does on a day to day basis. the guess work and risk is almost a non factor in your position.
     
  6. CreativeLawncareSolutions

    CreativeLawncareSolutions LawnSite Silver Member
    Posts: 2,025

    150 mowing accounts plus fert? So, you need 3-4 guys to take care of this or what? 125k invoiced out? Something doesn't sound right about that.
     
  7. gcbailey

    gcbailey LawnSite Silver Member
    from WV
    Posts: 2,564

    I'd make him sign a non-compete agreement on all the current customers. What's to keep him from selling to you for a quick buck then turning right back around keeping most of the equipment and getting most of the old customers right back...
     
  8. sehitchman

    sehitchman LawnSite Senior Member
    Posts: 757

    Thats about $17 per cut, I think I'd need to know a ton more about the route, size and type of customer to even consider this.
     
  9. pistolgripnova

    pistolgripnova LawnSite Member
    Posts: 13

    I have been running this crew for 3 years, so I know the route like the back of my hand. I also will be keeping the rest of the three man crew intact. As far as the value he has put on the accounts he basically took what we charge for a cut and multiplied it by 3 for the regular maint. and about 1/3 the the value of the fert./chem. The non compete clause is a good idea, although I know his reasons for getting out and I really dont see him mowing a yard other than his own ever again buuut...wouldnt be the first time I assumed something and was wrong. Thanks for all the input.
     
  10. gunsnroses

    gunsnroses LawnSite Senior Member
    Posts: 266

    From what little info given, I wouldnt go higher than 12,000
     

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