i need your help on buyout

Discussion in 'Lawn Mowing' started by kdbetters, Oct 26, 2005.

  1. kdbetters

    kdbetters LawnSite Member
    Posts: 70

    I have been in the lawn business for 3 years now and have been presented with a difficult issue, a buyout. Just to give a little background, I own a mow and go service here in the metroplex and have about 85 customers. Some have been with me since I started, some are new, however none are on contracts. A friend of mine, who is always looking for investments, asked if I would sell him my entire business and sign a two year non-compete clause for $8,500 cash including my equipment(about $2000 worth). I told him I would think about it but I just dont know. I will gross about $55,000 this year. I have been thinking of getting out of the business, but on the other hand I have been thinking about growing it. What do you guys suggest or just tell me whether its worth it or not. Thanks!
     
  2. newz7151

    newz7151 LawnSite Silver Member
    from Tejas
    Posts: 2,419

    What is your secondary source of income? If you need to work, and do not already have something lined up, I would stay with what you have. If this is just a part time gig on the side of a regular job and your regular job pays enough to support you (or you are retired and supported) then do what you feel you want to do.

    Nobody, unless they are you, and in your shoes can tell you what you should do. They can offer opinions, as I have, but it's ultimately up to what you feel you need.

    Also, 8500 does not sound like an awful lot, but without anything being under contract, there's no gurantee that those customers would stay customers.
     
  3. GrassBustersLawn

    GrassBustersLawn LawnSite Senior Member
    Posts: 983

    What are you NETTING on your $55k GROSS?

    If you are netting $5k, Then YES, take it and run!
    IF you are netting $40k, then NO.

    $2k for you equipment? Either you don'thave much equipment...then $55k sounds like a good GROSS...or you are not getting enough for equipment.

    Mike
     
  4. Toy2

    Toy2 LawnSite Bronze Member
    Posts: 1,924

    Why don't you pull a Justmowit approach? He states why sell a cash cow, if you can grow it, then go for it...if your freind is into investments, maybe he sees something in your business that you don't??? It looks like you have done good so far...If it were me, I wouldn't do it....but thats me.....$8500.00 is nothing, I could sell my stuff for that with no customers attached....
     
  5. wowlawncare

    wowlawncare LawnSite Member
    from TN
    Posts: 62

    Yea I think that is to low. If its a 55k a year deal then id make him pay alot more. He can make his 8,500 back in a month. But it is your decision.
     
  6. JTW

    JTW LawnSite Member
    Posts: 64

    Tell him to invest 8,500 into the buisness and you can make him a silent partner giving him a percentage.
     
  7. Jpocket

    Jpocket LawnSite Silver Member
    Posts: 2,278

    If your doing that good why sell, if your tired of the work just add say 20 more accounts and get two guys to do all of them.
     

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