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buying a lawn business

Discussion in 'Lawn Mowing' started by bobwright007, Apr 6, 2005.

  1. bobwright007

    bobwright007 LawnSite Member
    Posts: 38

    I was offered a lawn business today, The owner wants $25,000, he says he made $37,000 last year working 19 hours a week. The equipment consist of a brandnew Grasshopper with a diesel engine. To me that price sounds high, SO i just need some advice from those of you who have purchased a lawn company like this. And what routes i should take,
     
  2. grass-scapes

    grass-scapes LawnSite Bronze Member
    Posts: 1,552

    Lots of threads JUST LIKE THIS. Did you search? Anyway, give a fair price for the equipment, and maybe the equivalent of a month or so of income per client you actually retain after the switch. if you pay up front, what guarantee do you have the clients will stay. What guarantee do you have he will not go buy new equip with your money and take all his clients back. BE CAREFUL
     
  3. How many accounts, any other equipment? Very few people on this site ave purchased a lawn care operation, most have worked at "building their own" over many years of trial and error, 37K gross or net? do you already have a truck and do you have any experience, did he do apps, installs or just lawns (cutting) ? Personally I would rather take the 25K and build my own business, do you get guaranteed contracts?
    Just a few questions that I would ask, good luck.
     
  4. StealthDT

    StealthDT LawnSite Member
    Posts: 97

    I sold two businesses, one was my mowing division. Sold for $12K, which was a rip off, but hey, he really wanted it, so who was I to argue? Just simple math will tell you at 19 hours per week he's at $37.44/hour, given 52 weeks of work, which is seldom the case.

    By the way rdran5, I'm near you, check out my website.
     
  5. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,938

    if i was you and did buy it i would have a lawyer draft up a DNC (Do Not Compete) form for him to sign. for a 1 year period he cant start up a new lawn bizz. just my :twocents:
     
  6. Stealth, I can't PM you and your web site is not listed, I tried but you have blocked the feature..
     
  7. StealthDT

    StealthDT LawnSite Member
    Posts: 97

    Apparently my account hasn't been approved yet. I don't have PM's disabled. Just add a "dot com" to my nickname for my website.
     

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