Do You Think It's Worth It!

Discussion in 'Lawn Mowing' started by aries, Mar 4, 2005.

  1. aries

    aries LawnSite Senior Member
    from nj
    Posts: 334

    A Buddy of mine a fellow LCO after 13 years in the biz has decided to move out of state and has offered me his costumers and all equipment, here is the list

    37 residential account's
    11 commercial accounts
    All being billed at $13,000 per month for lawn maintenance only in addition all account's get chem appl, mulch,shrubs trimmed, and winter snow plowing and salting for commercial that add's up to an incredible amount of income for the year! all done with 3 worker's which I will be keeping on to run the route!
    Also included is equipment!
    1.60 rider lazer ex mark with bagging system
    1. 48 rider ex mark with bagging system
    1. 18' enclosed trailer
    2. little wonder push blowers
    1 lesco leaf vac truck mounted
    94 f450 diesel rack dump
    thatchers,weed whackers, backpack blowers
    250gal spray tank
    parts
    tools ect ect ect!

    all for the grand total of $65,000.00 payup

    This will all be in addition to the business the I already have, and the other thing is he only has contract's on commercial accounts none for residential?
    What do you guy's think
     
  2. TScapes

    TScapes LawnSite Senior Member
    Posts: 453

    You stated that he is currently billing $13,000 per month, but none of those are residential? Is that correct? Either way you look at it, if his total billings are $13k per month, his asking price is about 42% which seems to be an acceptable price to me. Not to mention that price includes the equipment! If you can handle it, my advice would be to go for it. By the way, what did he gross last year?
     
  3. aries

    aries LawnSite Senior Member
    from nj
    Posts: 334

    Tscapes the 13 grand is all the accounts lawn maintenance only and the past 2 years he has grossed in the low $200K with everything plowing ect.

    Thank's
    Joe
     
  4. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    I would be all over that deal like white on rice Joe...good for it and best of luck.
     
  5. aries

    aries LawnSite Senior Member
    from nj
    Posts: 334

    Thank's Rod I have I'm pretty sure I will just have my accountant running some # before I make him an offer do you think I would insulting him if I come in at $55,000 ans how would you guy's work out the payoff I was thinking of giving let's say $35,000 and the rest in payment's within the first few months of service to make sure I retain the costumers in the transaction I have been their before and payed up front for all the costumers but when they found out I was the new guy I lost about 15 . never again!
     
  6. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Well, I have commented on these types of deals in the past.

    If it were me, the biggest concern I would have is with the "transition". I would want the seller to personally take me around and introduce me to all my new prospective clients (referral letter ain't gonna cut it) in my opinion. He and I would need to assure everyone there will be no lacking in the quality of service they were accustomed to nor any question of reliability as well from where I stant.

    Joe, I would wait till your accountant checks things out before making any kind of offer/counter offer. A buy-out period probably would be a good idea. If it were me (selling), I would want the agreed upon price for all equipment up front...you're gonna be using it right away, correct? So it's only fair you pay for what you will be using.

    Personally Joe, I think just from what you have said so far you have a great opportunity here. Remember, the transiton is key.
     
  7. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Almost forgot. This is NOT just buying accounts...rather a true "turnkey" operation.
     
  8. impactlandscaping

    impactlandscaping LawnSite Silver Member
    Posts: 2,332

    I may have to open a satellite operation in Jersey...lol :D
     
  9. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    If I were you Joe, I'd be down at my bank Monday morning first thing looking for a loan officer.
     
  10. aries

    aries LawnSite Senior Member
    from nj
    Posts: 334

    I already have that taken care that Rod that's the first thing I did, just hope it's all what it's cracked up to be that's alot of GINK payup to let go!
     

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