Buying LCO Accounts

Discussion in 'Starting a Lawn Care Business' started by Clipper1, Aug 1, 2007.

  1. Clipper1

    Clipper1 LawnSite Member
    Posts: 2

    I have an opportunity to purchase 16 residential and 3 commercial accounts from an LCO who has put together a deal with a developer and no longer will have the time or desire to service these accounts.
    None of them have signed contracts but he states that they pay year round (12mos) and all have been with him for at least 2 years. He is open to me looking at his books with regard to these accounts and states that he can show deposits to match the rev generated. Now the money part, 50 cents on the dollar. Looks like they generate about $2600.00 a month or $31,200.00 a year. Assuming the books look good...are they worth this kind of money without contracts? I have only been at this for about a year and a half but all of my full time clients (about 12) have signed contracts. Looking for some input from some of the pro's that have Seen this type of deal before. My gut says they are worth far less. Thanks for all the constructive input.
     
  2. Patatoe1

    Patatoe1 LawnSite Member
    Posts: 111

    I'm sure most people on here are going to say to not even bother purchasing these from the other LCO if they are not under contract.

    Others may say, try to find out which residential lots they are, and then go after them yourself.
     

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