Buying accounts

Discussion in 'Pesticide & Herbicide Application' started by grassmasterswilson, Mar 15, 2012.

  1. DUSTYCEDAR

    DUSTYCEDAR LawnSite Fanatic
    from PA
    Posts: 5,137

    you dont do tree and shrub so you are going to lose all those clients real fast
    r these high end or blue collar accounts?
    why is the person selling getting sued? foreclosed on?
    as for price you will pry have to pay at least 50% of gross but may be as much as 100% or more.
    buying a biz is like buying a hooker you may get the clap if you are not careful
     
  2. fl-landscapes

    fl-landscapes LawnSite Silver Member
    Posts: 2,542

    Even that is five times the op price
     
  3. fl-landscapes

    fl-landscapes LawnSite Silver Member
    Posts: 2,542

  4. Ric

    Ric LawnSite Fanatic
    Posts: 11,956

    Fl

    Great site that should set a lot of people straight. It pretty much doesn't matter what state or area the Business is for sale in. Prices are running 80 to 125 % of gross sales or 150 to 300% of Net Income. Add in Owner Financing and their risk factor and you will being paying a lot more. Banks won't jump on Business purcahses unless they have Hard Collateral like Real Estate.

    I sold my Business to my Employees and Financed it. However they couldn't buy the Pest Control, so I sold it separate. After a Failed go round with TG/CL who buys income all the time. I sold to 3 different smaller companies getting 100% on a years Gross up front. TG/CL wanted a huge hold back for lost accounts. That was a last minute offer at the lawyers office for a closing that didn't happen. BTW I did have to sign a No Compete for 1 year. Florida courts only honors Non compete for one year. I waited two years before going back in business and never approached my former customers.
     

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