Buying out business

Discussion in 'Starting a Lawn Care Business' started by GriffinLawnService, Aug 23, 2013.

  1. GriffinLawnService

    GriffinLawnService LawnSite Member
    Posts: 235

    I have never looked in to buying any accounts from anyone but I was offered this option from a friend that is also in the business. His business is about twice my size (we are servicing about 80 regular accounts). With that said I am not sure what all is involved. He is just wanting what the accounts pay for a month on the business. Equipment he is going to discount well.

    I was just wanting opinions on this, experience with this, do's and dont's.

    Thanks again
  2. Durabird02

    Durabird02 LawnSite Member
    from Indiana
    Posts: 144

    One month is really cheap! Sounds like a good deal, I would just be careful buying his old equipment, don't pay more than the stuff is worth or more than you could turn around and sell it for. Also, the deal needs to be setup that he gets paid based on the accounts that stay with you, you don't want to pay upfront for a bunch of accounts and then half of them drop you after the switch!
  3. JNyz

    JNyz LawnSite Bronze Member
    Posts: 1,086

    1 month is fair for both sides but I would shoot for 2.5.
  4. Roger

    Roger LawnSite Fanatic
    Posts: 5,923

    If the buyer can get the accounts for one month's revenue, why would he "shoot for 2.5?"
  5. JNyz

    JNyz LawnSite Bronze Member
    Posts: 1,086

    Because 2.5 weeks is less than 1 month.
  6. Roger

    Roger LawnSite Fanatic
    Posts: 5,923

    Sorry, the 2.5 did not have a qualifier -- assumed you remained in the "month" domain, not "weeks."
  7. JNyz

    JNyz LawnSite Bronze Member
    Posts: 1,086

    Sorry, just thought you would understand. Always offer less, you never know. It's just like bidding landscaping jobs, you throw enough **** against the wall, something will stick.

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