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Buying out companys to get big

Discussion in 'Business Operations' started by smarino21, Jul 10, 2006.

  1. smarino21

    smarino21 LawnSite Senior Member
    Posts: 345

    I was thinking of trying to buy out some companies so grow. You guys have any word on this?
  2. wski4fun

    wski4fun LawnSite Senior Member
    Posts: 323

    That's how many I know have done it and works out well.
  3. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    beats advertising IMO
  4. J Hisch

    J Hisch LawnSite Senior Member
    Posts: 952

    I have bought out 2 residental mowing companies, one with 22 acount now equipment the other 90 accounts and equipment both have worked out great and makde monewy off the investments very quickly.
  5. Brianslawn

    Brianslawn LawnSite Silver Member
    Posts: 2,004

    works like a charm
  6. smarino21

    smarino21 LawnSite Senior Member
    Posts: 345

    yea i understand what it works good but what price is too much to pay. Obviously you got the equipment cost but then you got the accounts which is the real value?

    Also i like to have all the same equipment and buy from the same place so you think you could make any money selling there equpmt?
  7. DoetschOutdoor

    DoetschOutdoor LawnSite Bronze Member
    from S. IL
    Posts: 1,818

    For those of you that have bought out other biz's, how did you go about getting the ball rolling in the first place for the deal? Did you just start talking and make offers, look around for those wanting to sell, or what?
  8. abuckeye

    abuckeye LawnSite Member
    Posts: 93

    I started sending letters to prospects to see if I got any response. I had a couple of calls, and started talking to one person and made a deal. I did this in the fall so I gave some money up front and held the rest until spring to make sure I got the accounts. I made the final payment contingent on the numer of accounts that I kept. I only kept 10 of 24 so his final payment was much less than the agreed upon price. I also had him sign a non compete clause as well. Hope this helps.
  9. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Posts: 4,205

    Saves a lot of leg work and adds new markets with little effort if done correctly.
  10. Brianslawn

    Brianslawn LawnSite Silver Member
    Posts: 2,004

    just looked around for people mowing for $20 a yard and of all the bankrupt people a piced one to offer a few peanuts to.

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