Buying a lawn and snow buisness

Discussion in 'Starting a Lawn Care Business' started by Nickduro, Jan 6, 2014.

  1. TMlawncare

    TMlawncare LawnSite Bronze Member
    Posts: 1,197

    Why would it not take a handful of employees to "average" 13k a month? I sure know I can not gross 13k per month in the winter solo. Crap I can not do 13k/month solo in the summer. For me it takes a handful of employees. If you can do it solo, share your secret.
     
  2. TMlawncare

    TMlawncare LawnSite Bronze Member
    Posts: 1,197

    That would be net profit of the business = owners pay. At that point you can throw some back in the business account or your own accounts. Up to you. It all your money at that point says the tax man.
     
  3. TMlawncare

    TMlawncare LawnSite Bronze Member
    Posts: 1,197

    We just purchased a company last year. It added 60 accounts to our operation. To us the accounts were everything. The accounts were the reason we purchased the company. The accounts are what puts money in the bank. Why else would you purchase a company? If I wanted more equipment I would buy it. If I wanted more employees I would just hire some. One concession I had to have was an agreement with the owner to help with the transfer of account throughout the course of the season. If the gross revenue drops below a set amount do to accounts being cancelled a reduction in the purchase price takes place. Overall at the end of the season 85% of the accounts transferred.
     
  4. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    You need to have the equipment appraised and wholesale prices because if you had to liquidate you would not get retail.

    You have to get net numbers. Then if the net seams good. Then you must have your accountant not his go over his last 10 years records.

    Without that info you can be taken. If this owner will not let his books be examined then what he is claiming is pure fiction.

    Buying a business is not as buying a car. These things take time. He is rushing you then that is another bad sign. He does not want you to have the time to figure he is bending you over.
     
  5. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    Only your accountant can answer that by examining the books for the last ten years. We do not see his books. You can not afford to hire an accountant to examine the books then you can not afford to buy the business.
     
  6. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    Only a fool will believe the sellers CPA, accountant, consultant. He is paying their salary not the buyer.

    They have no loyalty to the buyer.
     
  7. Nickduro

    Nickduro LawnSite Member
    Posts: 11

    Iam meeting with his accountant on Monday to get to the bottom of this and whatever is provided then is what my offer will be based on. Thanks guys for the input very helpfull.
     
  8. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    You need your own independent accountant. Do you trust this seller? Then why are you trusting his guy?
     
  9. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    For the money this guy wants you can buy from a new truck to a new broom and everything in between. Have a web site and all kinds of advertising. Pay yourself a salary for the first year.
     
  10. Nickduro

    Nickduro LawnSite Member
    Posts: 11

    Iam bringing my accountant aswell, and no I don't trust him I will not be offering a number anywhere close to what he is asking I want to see what my accountant thinks about all of this and possibly not even offer anything we'll see what it brings
     

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