buying a business please advise...

Discussion in 'Starting a Lawn Care Business' started by zohhhsix, Jul 9, 2006.

  1. zohhhsix

    zohhhsix LawnSite Member
    Posts: 86

    I am looking into buying a business and need to know if this is a good deal. Please see the llist below and let me know what you think and how much it should be.....Thanks

    1996 ford F250 diesel pick up truck
    2000 Chevy 3500 12' flat bed stake biody truck
    2004 Tandem axle trailer 16' long
    8.5' Boss snow plow and 8' western bed sander
    2004 Exmark 60" Z turn mower 27 hp motor
    2005 Exmark 52" Hydro walk behind mower
    2003 Scag 48" walk behind mower
    2000 John Deer3 36" walk behind mower
    2005 Turfco 36" Aerator walk behind Honda motor
    1990 Exmark 36" walk behind mower
    2 push mowers 20"
    3 Stihl Trimmers----streight shaft commercial
    2 Stihl Edgers-----streight shaft commerciala
    2 Stihl Blowers-------420 commercial
    1 stihl Hedge Trimmer

    Many Miscellaneous tools
    patio tools
    manual trimmers
    etc etc

    76 residential contracts
    6 commercial contracts

    business asking price is 135k
  2. zohhhsix

    zohhhsix LawnSite Member
    Posts: 86

  3. JJLandscapes

    JJLandscapes LawnSite Senior Member
    Posts: 682

    u need to ask them for all there accounting papers to see how much the company profits a year.. most people goingg to say dont pay more than 1 months sales plus the value of all the equipment.. but most are also against buying out companies

    make sure u have a lawyer draw up contracts so the person u are buying from cant come back in a few years and steal his customers back from you. and make sure all current customers are aware of the owner change and are willing to sign yearly contracts with you

    how many plowing accounts? was most of his business of landscape construction?

    i would never pay 135k for a landscaping business unless 1) i was going to pay that off in 1 year with profits 2)i had 135k to spare and can risk it something like 95% of small businesses fail in year 1.. this is me personally some people will disagree

    MOST IMPORTANTLY have you ever ran a business before or have u ever done any landscaping work u have to be able to keep up his quality of work or you willl lose everyone
  4. zohhhsix

    zohhhsix LawnSite Member
    Posts: 86


    Yes most of his revenue was from Landscaping side. 60/40. If I can have all accounts singed over to the new company, what you think the price should be? All the equipment comes to be around 35k or so and I get 5 employees with the business.
  5. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    Well if you got the 135k I don't understand what is the problem here.

    I mean, you're basically going to jump right into the captain's cabin of a ship you've never driven before, and take over just nice as can be, with absolutely no knowledge of the business, and without experience.

    So it will take time because with a large thing like this they don't sink overnight, but I'd expect you to be declaring bankruptcy within a year or thereabouts. At this point it doesn't really matter whether it's 50k or 500k, bankruptcy is bankruptcy, doesn't matter how much.

    So, just pay the guy whatever he asks and at least have the time of your life driving his ship before it sinks, you never know, you might be the one of out every 10 who actually makes it.
  6. Freddy_Kruger

    Freddy_Kruger LawnSite Bronze Member
    Posts: 1,064

    You're like a cheerleader!

    I read just yesterday in a book called "Get Organized to be your Best" that half of the fortune 500 companies from 1980 no longer exist. In that light 100% of businesses fail or go out of business.

    For zohhhsix do you have any experience in landscaping?
  7. Sandgropher

    Sandgropher LawnSite Senior Member
    Posts: 909

    In Aussie (west) a lot of mowing businesses come with 1 month training, make sure that this guy will be around for a least one month to assist with hand over and to give advice and training etc


    PMLAWN LawnSite Gold Member
    Posts: 3,535

    Holy Cow!!! You are just a bundle of JOY this morning

    Zohhhsix, as harsh as he is topsites He does bring up some good points-can you run what you buy
    Also if the equipment is 35K I would feel a lot better if you were a lot closer to that number- You can do a lot of advertising and get your own customers for 100K
    And here is the biggie-- what happens if the employees walk. Just things to think about.
    And forgive topsites he saw 135 and knows he has to work 3 years just to gross that much:)
  9. zohhhsix

    zohhhsix LawnSite Member
    Posts: 86

    I worked for a large Landscaping company for 4 yrs while I was going to school. I have no issue running and growing the company, I just wanted some expert opinion on the price and see if this is a good deal or not. Thanks for all the replies..

    topsites.....Didn't your mama tought you to be quiet if you have nothing nice to say. I didn't ask for your opinion on how long it will take to sink, so keep your eye on you boat before it sinks. I wonder how you business does with that kind of negative attitude....
  10. zohhhsix

    zohhhsix LawnSite Member
    Posts: 86


    Thats where I am stuck. Should I start new or take over something that is working pretty good. Thanks for the advise.

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