Buying other companies/customers

Discussion in 'Turf Renovation' started by ByrnesLandscaping1, Feb 26, 2008.

  1. ByrnesLandscaping1

    ByrnesLandscaping1 LawnSite Member
    Posts: 19

    I have an offer to buy an existing companies customers for yearly maintenance and Mowing etc... What is the normal procedure in regards to upfront payment and/or residual payments in the future. Please let me know what your thoughts are.

    Thanks
     
  2. Royalslover

    Royalslover LawnSite Senior Member
    Posts: 382

    Lots of varibles--I've bought lawns from two guys and I knew them both. I made payments to them. If it's not someone you know they probably wouldn't let you do that. I personally wouldn't want to pay over five mows unless they were very good acounts; tight route, good pay, all the rest. I would also have a provision for the accounts that are lost in transition. I paid a guy $8000 for 40 yards and a year later only retained 20 of them.
     

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