Buying Out a Large Business

Discussion in 'Business Operations' started by nnj18, Feb 16, 2009.

  1. nnj18

    nnj18 LawnSite Silver Member
    Posts: 2,860

    Do any of you think its possible to take a large business that isn't doing great like it once was (poor management) and rise it back up? Their pricing is fine its just the management. This probably wouldn't be for a good 5+ years down the road.

    When I say large I mean like 300 maintenance accounts, (2) irrigation and (3) landscape crews.
     
  2. cod8825

    cod8825 LawnSite Senior Member
    Posts: 501

    I am solo operator but I have seen it in other industries so I believe that it can de done here as well I hope you find the answer though.
     
  3. JDUtah

    JDUtah LawnSite Silver Member
    from UT
    Posts: 2,636

    What would you change in the company to streamline the management? What/how do you plan to get a large company, with bad management, to buy into the changes initiated by a 23 year old without crippling it completely?

    Answer those and I might give you a better opinion.

    ?
     
  4. DLAWNS

    DLAWNS LawnSite Fanatic
    Posts: 5,778

    Jared--

    Are you talking about buying the company? What I mean is accounts, equipment, and employees? Than turning it around from there? Or would you be hiring your own people? Just wondering if you had more info?
     
  5. nnj18

    nnj18 LawnSite Silver Member
    Posts: 2,860

    If I was to buy them out it is such a large company, I would have to slowly bring in new people and new equipment. I might be able to win over some of the current employees, but there are many problems with the company so I'd rather just eventually have all new guys. Since this is a public forum I'd rather not say too much.


    Right off the bat I'd bring in new management, maybe keep 1 or 2 from the current who are promising and are willing for change. Most of the employees would be canned and most equipment sold.

    One very large reason why I've been thinking about this more, is because of the land/shop location and the current customer base.
     
  6. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    The trouble you will have is the company culture. The benefit of buying a business is the systems and company culture that has made them successful. If the culture is is bad now it has no value. The systems may be on paper somewhere but if the crews are not following them now you are starting from scratch it too has no value, so you are left with equipment and employees.

    Truth be told with a install company you are not even buying a revenue stream you are buying the rights to use their reputation to sell new jobs. In this economy I think your money would be better spent on lottery tickets :laugh:.

    At least with a maint. service you are purchasing a consistent revenue stream, not so with an install company. It is tough to turn a battleship it takes a lot of time. I have tried what you are talking about and after a year I walked away.

    My bad I see the maint now but keep in mind the value of purchasing accounts -vs- a company is much different.
     
  7. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    Sure it's possable, But do you have any managemnt experance in this area ?

    sounds like there needs to be a total revamp of the operations.
     
  8. JNyz

    JNyz LawnSite Bronze Member
    Posts: 1,084

    Three hundred accounts is a lot to mananage. You and a right hand man should be able to do it. The biggest problem I see is to make sure the 300 accounts are NOT low priced. I have a few friends who brag they have over 200 accounts but most are under the average price. Most of us could have 300 accounts tomorrow if we bid low but most know better. Do your research and just keep the quality laborers.
     
  9. nnj18

    nnj18 LawnSite Silver Member
    Posts: 2,860

    Just to clear some stuff up, pricing is a non-issue and the work gets done, just not as well as it should or could be done and taking a little longer then expected.....
     
  10. newtostone

    newtostone LawnSite Senior Member
    from NY
    Posts: 681

    Is the business for sale? or just thinking if you were to buy it, how much it would take to rebuild?
     

Share This Page