Going our seperate ways.

Discussion in 'Lawn Mowing' started by rhino42n, Jun 11, 2008.

  1. rhino42n

    rhino42n LawnSite Member
    Posts: 12

    Hello everyone, I have a question and looking for some input.

    I am part owner in a LC business(33%) and we are thinking of going our own seperate ways. I have one other partner who ownes the other 67%.

    Anyone have any ideas on the best way to seperate? How should we handle the equipment. He is basically wanting to buy me out. Should the equipment value be split at 50%-50% or 67%-33% since all our profits for the last two years have gone to paying off the overhead of machines. Am i off in thinking that I shold get 50% of the value since we both paid from our gross profits to pay off the machines. And what about the next 4- 5 months of mowing left? should I also get my portion of profits there as well.

    Never had to do this before and I want to be fair yet still get my share. We are friends and I want to end on good terms but still want what is coming to me.

    Anyone with any suggestions or thoughts it would be greatly appreciated.

    Thanks
     
  2. SamTheLawnMan

    SamTheLawnMan LawnSite Member
    Posts: 220


    For it be fair I would want 50% of all equipment and at least one month's worth of the remaining profits for the rest of the season.... I think I would be happy with that....
     
  3. RHill

    RHill LawnSite Member
    Posts: 95

    I would think you should get 33% of the total value of the business, not only the equipment but also Total business including the accounts y'all have built up together. Since you worked for two years to build the business you should get more than just the 33% of the equipment. I would try to find someone in your area that knows the lawn care business that would be fair and place a value on the total operation. Then you would get a third of it.
     
  4. wheels910

    wheels910 LawnSite Member
    Posts: 163

    RHill is on the right track. There's more to your business than equipment. What about all the accounts. Splitting them up by percentage, Don't let him give you the biggest account and a couple smaller ones.

    What I mean is "don't put all your eggs in the same basket". If it were me, I would prefer 20 small accounts to 3 commercial accounts. The smaller ones are going to be easier to keep and retain seasonally. If you lose one, go get another. If you lose a commercial account paying 300-500 weekly, hard to replace.

    I would go for quanity, not size.
     
  5. dura to the max

    dura to the max LawnSite Silver Member
    from georgia
    Posts: 2,246

    i think this is about right.
     
  6. k911lowe

    k911lowe LawnSite Senior Member
    Posts: 526

    67 and 33 in my opinion.that's the partnership you entered.if you get more good luck.
     

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