Buyouts - Best Methood?

Discussion in 'Business Operations' started by procut, Jul 31, 2006.

  1. procut

    procut LawnSite Bronze Member
    Posts: 1,853

    As I have posted about a few times, I recently bought out a small company. At times, I felt like things were a little disorganized. Here is how we did it. He (the other guy) gave a letter to his clients explaining the situation. If they were interested in switching, he passed their contact info. along to me, and I then got in touch with them. Getting a hold of the differant people was very difficult, and at times, I thought there had to be a easier way. So, those of you who have gone though buy-outs, how did you handle it??
     
  2. BRAD ROMEO

    BRAD ROMEO LawnSite Member
    Posts: 34

    When I Did It . Me And The ( Other Guy ) Went After Work ,told Each One In Person What Was Going On. Got All 22 No Problem.still Have All 2yrs. Later.
     
  3. DLS1

    DLS1 LawnSite Bronze Member
    Posts: 1,619

    How much did you guys pay per customer and how did you spread out the payments. Did you pay a percentage every few months if the customer was still with you until you finally had it paid off. How about no compete type clause.
     
  4. BSDeality

    BSDeality LawnSite Silver Member
    Posts: 2,849

    way back I bought out 7 accounts off a high school kid who was going away to college. We started by discussing the propertys sight unseen, pricing, buyout costs. After we agreed on a fair market value for each property he showed me the route, introduced me to all the clients, gave me their contact/billing information and gave each customer one of my business cards. It worked out well, lost one account 1.5yrs later, but no biggie.
     
  5. GBSLAND

    GBSLAND LawnSite Member
    Posts: 23

    I have bought out three small companies (12) (7) (21). The best way to do it is meet them all face to face with the previous landscaper. Then sign the contract for the rest of the season(if you do contracts). As far as payment i do 2-3 weeks of cutting per house. Then make sure you have a no compete clause in the signing over of the customers. Hope this helped out.
     
  6. Rich's LS

    Rich's LS LawnSite Member
    Posts: 96

    I just sold mine this past week.. We sent out a letter stating that we are merging and then after a month or so of them being used to seeing his people he will send another letter out saying I am off to purse different interests... that seems to work real good.. the going rate here seems to be 3 months of service and maybe a retention clause but not in my case.
     
  7. procut

    procut LawnSite Bronze Member
    Posts: 1,853

    Thanks for the replies. I do think the meeting face to face would have been the best, I think I suggested it, but he claimed he "didn't have the time." If I ever do another buy-out I'll probably insist on it.
     

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