buying a company out

Discussion in 'Lawn Mowing' started by lee's lawn service, Oct 22, 2004.

  1. lee's lawn service

    lee's lawn service LawnSite Member
    Posts: 35

    i have a guy that wants me to buy him out wants me to just buy
    the yards 1300 per month for 3500.00 should i do that are is that too much
  2. chipk1

    chipk1 LawnSite Senior Member
    from Florida
    Posts: 393

    That dependes on if the customers agree with the switch in service. Even then, I won't pay more than 2 months revenues.
  3. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    $1300/month? Not much to buy is it? You should be able to hustle up that amount of work easy.
  4. Geezer

    Geezer LawnSite Member
    Posts: 44

    Ditto to Lawn-Scapes and chipk1 on thier comments. Why is he selling? Have you seen the jobs? IS HE PROFITABLE ON THE WORK AT THAT PRICE?
    What are his production times? Can you be more efficient because you have an equipment advantage? Are they where you are working already? Travel time can sink a marginal job quickly.

    If you are breaking even, you are going broke. It is just slow and painful.

    Review the comments already offered and those to follow. Then if you are still considering the deal, get the seller to meet with the YOU & the customers to see if they will stay with you least to a break even point....CONTRACTS anyone?
  5. CathyLynn

    CathyLynn LawnSite Member
    Posts: 77

    Kind of a small set up to buy--the other guys have the right comments. A little advertising could hustle up that much work! There are crews coming through our shop all the time that do that much in 3 or 4 days!

    Top offer from us might be 10% of revenue---5% after 90 days and the balance at the end of the season--that way if the customers bail on you it's not such a bad hit.
  6. Flex-Deck

    Flex-Deck LawnSite Silver Member
    Posts: 2,846

    Sounds good if you are efficient.
  7. oneandonlyjojo

    oneandonlyjojo LawnSite Member
    from NY
    Posts: 125

    try to get his list of houses to go see his work and when he sells to someone else go steal the customers for free. or just spend that much on advertising and u will get a lot more customers

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