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Boss is selling out, is the price right?

10K views 47 replies 26 participants last post by  dnc19694339 
#1 ·
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.
 
#5 ·
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.
 
#9 ·
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.
 
#11 ·
if youre saying 150 account meaning you mow 150 lawns then to me it sounds you arent charging enough. the price for all that doesnt sound bad though. only thing i would have to say with "buying" customers is dont be dissapointed if you lose them although you may be fine if you have been working for him for 3 years the customers may not know the difference
 
#12 ·
Your in a better position than most when it comes to buying accounts. Usually I would say not too but you know the ends and outs better than any of us here. Doesn't sound like a too bad of a deal to walk into in your situation. Your choices are limited it sounds like. Find a new job, start from scratch, or buy him out.

I say go for it in your particular circumstances, your the first I had recommended buying accounts. lol
Good Luck, hope it goes smoothly for you if you should pursue this opportunity.
 
#14 ·
Exactly right, not too many options to choose from. I will take the fact that I am the first person you would recommend buying accounts as a good thing, makes me think you are cautious and reasonable, which is exactly what I need to be before shelling out a chunk of money. Thanks for your input.

Meant that top part for sprinkler buddy, but I think you are right on with offering $20k.
 
#16 ·
Exactly right, not too many options to choose from. I will take the fact that I am the first person you would recommend buying accounts as a good thing, makes me think you are cautious and reasonable, which is exactly what I need to be before shelling out a chunk of money. Thanks for your input.
It is a good thing, I'm pushing 20yrs as a lawn care business owner. I wouldn't consider buying accounts myself unless it was in a situation like yours, which doesn't come along very often.

I like the fact that your current employer has given you the opportunity and given you the heads up of his decision to sell. He sounds to be a man of his word, nowadays that is rare. Best of luck to you!

You can check my credentials as a lawn care professional "Leo Gauthier's Lawn Service" Williston, FL. I'm all over the web, mostly for my invention the Sprinkler Buddy but I am a veteran lawn care professional none the less.
 
#17 ·
I really dont think it matters if he gets advice from the newest member of the forum, or the creator of the forum. he should be cautioned whenever dealing in his own money on a business venture of any size. Ive been on this forum for 6 years or better. not under my newest business name, but ive been around. it goes to show you that post counts and join dates are NOT a good source of credibility on the internet. it doesnt matter if you have 10 or 10,000 posts. the OP doesnt know any one of us and should take everything we say with a grain of salt!

OP, I wish you the best in your business venture. It sounds like a decent deal to me. Like some others said, try and manipulate the accounts and equipment into one strategically negotiated price and you may have struck gold. or not. you know it better than any of us here. cheers and good luck!
 
#19 ·
Get some professional advice.. Accountant, Lawyer - do it right, it sounds ok, but don't get screwed by not knowing the paperwork side.. Might seem expensive to use professionals, but might save your 20k bacon.
best advice of any of us!
 
#20 ·
the biggest advantage you have in this deal is the changeover can basically be seemless since you are already working the accounts and running the crew. you can basically just keep doing what you are already doing. perhaps even the boss selling it to you would let you make payments over a period of time instead of having to pay it all in one lump sum? just an idea maybe you could talk it over with him.
 
#22 ·
Not to spoil the party but none of this thread matters any if you don't have the entire amount in cash money.
All of it and I'm surprised this isn't the first question people ask, because they should.

Bank ain't going to loan it to you.
And if you don't believe me, go and try.

So, you have that kind of money?
If you don't, it's no matter talking much further.
Few people do, why it's always the first thing I ask.
 
#23 ·
I would have to see tax returns, and a whole lot more, buying accounts is risky no matter what, your guaranteed to lose accounts. I bought 12 accounts last year and only have four left,luckily I didn't pay much for them and the highest paying ones are the ones still with me, I learned the hard way about buying accounts, people don't like change no matter what they might say. Good luck, but be careful and do your homework.TAX RETURNS!
 
#24 ·
he really shouldn't lose any accounts since he is already the one running the crew that services the accounts. as long as you keep the same name of the company the people will never know the company has changed owners. they will see the same people showing up to work on their yard so they will think nothing has changed.
 
#26 ·
he really shouldn't lose any accounts since he is already the one running the crew that services the accounts. as long as you keep the same name of the company the people will never know the company has changed owners. they will see the same people showing up to work on their yard so they will think nothing has changed.
Exactly.

Best Way does my trash disposal. I see a best way dump truck. i get a bill from best way. i don't have a freakin clue who owns it. but if its sold and noone tells me then after the sale. i get a bill from best way and i see a best way dump truck

make sure you have in writing you can use the company name. or at least use it as part of your name so the bill seems to come from the same person.

The price seems about right. at least for what it would go for up here in michigan.

as far as how much you are getting from the accounts. i agree there is something off. 1000 / 4 cuts / 150 laws = 16.66 per cut. that seems low. should average at least 25 per lawn. up here in michigan anyway.
 
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