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Help need info on buying an existing busines?

Discussion in 'Business Operations' started by mc752000, Apr 17, 2008.

  1. mc752000

    mc752000 LawnSite Member
    Posts: 93

    Ok I have someone approach me about buying there business. It is all equipment not quite sure what it is it is a good bit,but anyways he has 30 acconts 80% under contract = up to 82000 in contracts and want to sell for 40000 needs to get out other business ventures is what he is going into. Any information be helpful.
  2. cucv

    cucv LawnSite Member
    from NC
    Posts: 14

    with that much work you need to make sure the equipment you are buying from him is damn good i say it's at least worth 25,000 with the customers i don't know what type of equipment but i would trade every mower blower and trimmer in on some new stuff fast because you can't have downtime with contracted work. hustler super z mower try one out.
  3. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Posts: 5,407

    10-15% on gross income of contracted clients and fair value for equipment.
  4. bradfordmick

    bradfordmick LawnSite Member
    from LA CA
    Posts: 5

    When I bought existing accounts I checked the history on the payments of the accounts and made sure they were all good payers. I also got the seller to sign a covenant to not compete for the accounts. I paid 3 x the monthly basic billing amount for my accounts.
  5. Katwalk

    Katwalk LawnSite Member
    Posts: 92

    So if they paid $50 per week X 4 weeks=$200 per month. Did you pay $600 for this type of account? Thanks.
  6. Stillwater

    Stillwater LawnSite Platinum Member
    Posts: 4,834

    be careful with the "contract" terminology, contract or service agreements, generally cannot be written strong enough to mandate them useing your service. The client list can still dump you regardless.

    It would be foolish of you not to visit each and every client and discuss your future with them before I toss the guy 40g. you should also find out why he is getting out
  7. Stillwater

    Stillwater LawnSite Platinum Member
    Posts: 4,834

    I seriously hope not

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