LCO buyout. Take a look.

Discussion in 'Business Operations' started by Raymond S., Feb 21, 2010.

  1. Raymond S.

    Raymond S. LawnSite Senior Member
    Posts: 979

    I am taking a look at purchasing accounts and equipment from another LCO. The list is as follows.

    52" Snapper WB 100hrs (backup)
    52" Snapper WB 300hrs.(main)
    2 Echo BP blowers
    2 Echo trimmers
    '04 24' Enclosed w/ shelves,racks,etc
    16' open w/ trimmer traps & sidegate
    16hp Billy Goat loader
    94 F250 gas 4x4 125k miles, dump bed, 7'6" Western
    95 F250 7.3 diesel, 150k, 7' 6" Western
    other miscellaneous blades,tools, etc.
    20 accts. approx $50k gross last year. (under contract)
    Been in business 23 yrs. Once had 350-400k gross, cut back over the last few years to concentrate on other home based business, less hectic, etc.

    What are your thoughts on the value of this?
    Thanks,
    -Ray
     
  2. fool32696

    fool32696 LawnSite Senior Member
    Posts: 991

    What is he asking? Are you already in business? Are accounts close to current routes? I'm thinking $20k for trucks/equipment and I'd offer $10k for contracted accounts. I wouldn't pay over $35k.
     
  3. Raymond S.

    Raymond S. LawnSite Senior Member
    Posts: 979

    Yes I am already in business. Fully structured and equipped for 1 crew. I could use the accounts, but don't need the equipment. I valued the equipment at $20,550 without knowing really what the 52" snappers are worth. I don't know anyone that uses them. The accounts are within a reasonable distance of mine. Some would let me open into other markets which could work out ok. If I am correct w/ the equipment estimate then he's asking a very small percentage of his gross for the accounts, far less than $35k.
     
  4. CLS LLC

    CLS LLC LawnSite Senior Member
    Posts: 487

    I'd say under 35,000 is good. But alot of it is dependent on if you want/need the extra equipment. You don't need two trucks and two trailers for his 1 lawn mower and to gross $50k. But if your business can grow into the excess equipment quickly, then it wouldn't be a bad deal.

    On the other hand you can always try to sell the truck and trailer you don't need and make some money back. Depending on condition you could do alright that way.
     

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