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Is it worth it???

Discussion in 'Pesticide & Herbicide Application' started by NCL, Nov 10, 2005.

  1. NCL

    NCL LawnSite Member
    from NJ
    Posts: 132

    A company in my area is selling 48 fertilizing accounts avg. 3000sqft for $4700 it grosses $6330. is it worth it???
  2. Rob Spread & Spray

    Rob Spread & Spray LawnSite Member
    Posts: 205

    Do they have signed contracts for 2006?
  3. GrazerZ

    GrazerZ LawnSite Senior Member
    Posts: 671

    Not to me. You will loose some of these due to the transition. If you want them, make an offer. I personally would'nt pay more than $2000.00 for them. I was told by someone that you can expect to get 30% of gross for such a sale, just what I have heard.
  4. The most I would consider paying is 60% the annual gross, and that is the properties are good treats and confirmed for at least one year, and with serious contractual safeguards in place for my protection.

    If the terms where "As Is" then no more then $2000.

    Review his books to determine if those accounts are slow or problem payers also.
  5. MIDWEST25

    MIDWEST25 LawnSite Member
    Posts: 97

    Don't pay the whole sum at once.Pay 60% of sale price up front.Negotiate a cancel rate of 10 to 15%.Make final payment after an app has been done on each one.If say 25% cancel that comes off final payment.Do a survey call to his base to see their opinion on lawnservices and if they find it money well spent.thats how we did at trugreen
  6. Mscotrid

    Mscotrid LawnSite Bronze Member
    from USA
    Posts: 1,456

    Even with a contract be careful. If there isn't a owner transferable clause those contracts could become null & void with a sell and purchase

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