buying out an exsisting company

Discussion in 'Lawn Mowing' started by smarino21, May 1, 2006.

  1. smarino21

    smarino21 LawnSite Senior Member
    Posts: 345

    i was looking into buying out an exsisting lawn care operation from mowers to accounts. Is there anything i should watch out for?
     
  2. imograss

    imograss LawnSite Senior Member
    Posts: 796

    Plenty to watch out for.I would want the seller to work with me until all clients were introduced, and agree to stay on. I would also want to make sure that some of the cost might be reduced should someone cancel during the transaction (unless you made a mistake on your end).Make sure this person will not go after these same clients in the NEAR future.
     
  3. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Exactly as Tim said.

    1. personal introduction to all new customers.
    2. contract drawn up with non-compete clause
    3. buyout period (just in case)
     
  4. Setup an escrow account with 15 to 25 percent of the cost of the sale in it to guard against customers jumping ship through no fault of your own. It also will give the seller motivation to see you succeed,then he gets the rest of his money.
     

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