Is it worth it to buy this route

Discussion in 'Marketplace' started by Earth Scapes, Dec 6, 2009.

  1. Earth Scapes

    Earth Scapes LawnSite Member
    Posts: 15

    local guy has 100 acounts in 1 square miles. Has a condo also. Has had customers for 10 years. 4 signed big snow plow accounts. With the deal it includes a Small UD dump with rugby landscaping dump. Nice conditon but older (est. year 1995) with new tranny. Also a Hino with 20 Yard alum landscaping dump. Hino is mint maybe 40K of it(est. year 2000) Comes with 7X14 southwest enclosed trailer. Comes with a 32" and 36" scag, 42" Stander and 52" sentar. Both machine have everything new except frame.all hand helds included. Comes with 25hp gaint vac leaf vac. Comes with 2 Fisher plows for a 1997 Dodge 2500 Diesel 12V with 100,000. Also 8 foot curtis spreader. All trucks are matching in color and lettered up. Also both employees want to transfer to new owner that know the route perfect. Owner will work with me and introduce me to the customers. What do you guy's think the business is worth?
     
  2. santafe

    santafe LawnSite Member
    Posts: 191

    most of my research on LS says a service is worth the value of the equip. plus 2 months worth of billing. originally that sounded cheap to me, but the more I read the more it made sense. contracted accts may be worth more but will that contract transfer?
     
  3. joef450snowplow

    joef450snowplow LawnSite Senior Member
    Posts: 844

    go for it id jump on that if i had the cash where on long island are u im in levittown
     
  4. Earth Scapes

    Earth Scapes LawnSite Member
    Posts: 15

    he wants 80 large. I think thats a bit high? what you guys think
     
  5. ponyboy

    ponyboy LawnSite Bronze Member
    from ny
    Posts: 1,412

    are they signed up for next year? Are you buying the name and phone number if so who will know if there is a new owner? $80k sounds cheap to me. You should buy it. I bought a route similar to that a few years ago best move I ever made
     
  6. Earth Scapes

    Earth Scapes LawnSite Member
    Posts: 15

    I am buying the name and phone number. They are all signed up for next year.
     
  7. ponyboy

    ponyboy LawnSite Bronze Member
    from ny
    Posts: 1,412

    you will make money next year I would do it in a second and I am glad to see more than just me already have their customer signed up for next year. If you dont need all the equipment sell some but man that is a tight route good luck
     
  8. baddboygeorge

    baddboygeorge LawnSite Bronze Member
    Posts: 1,249

    Look at the big picture with 100 acounts on a weekly you should be doing a minimum of 3500-4000 just on the mowing .Thats not including any landscaping work or extras that you could bring to the table. with those figures being correct that 80 grand investment can be paid for in 5-6 months. Then its pure profit from there.If you hustled that investment could easily be paid in full in the spring months. Just be careful when buying a customer base. Make sure he will sign a non compete clause for five years minimum. That way you dont get shafted on the customer base. I would make sure the name of the company also is included in the deal. If i was in that situation I would keep the company complete including name , phone numbers ,etc. and I would keep it as seperate entitey all in all .
     
  9. gene gls

    gene gls LawnSite Gold Member
    Posts: 3,209

    When buying name and number, you have to expect to pay more. Just make sure his service has been satisfactory for his customers.
     
  10. gene gls

    gene gls LawnSite Gold Member
    Posts: 3,209

    In the non compete clause, I would include a 10 mile radious for any landscaping type service.
     

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