Looking at a business!

Discussion in 'Lawn Mowing' started by mc752000, Jan 21, 2005.

  1. mc752000

    mc752000 LawnSite Member
    Posts: 93

    I have been in the lawn business for about 2 and a half years and they have a small lco wanting to sell his business this i what he has:
    03 exmark Lazer HP 23/52in 156hrs
    03 exmark metro 12.5/32in 60hrs
    04 Shindaiwa Trimmer and Edger
    03 Echo Trimmer
    03 Echo blower
    02 Troy bilt 21in
    24 accounts but no contracts. Showed me his income stats about 2500 during cutting months and only 300 in winter months. What would you purchase this business if you were to think about buying it. Appreciate the information.

    Thank You
  2. Smithers

    Smithers LawnSite Silver Member
    Posts: 2,265

    how much?!!!!
  3. lawnwizards

    lawnwizards LawnSite Silver Member
    Posts: 2,434

    i'd pay him for his equipment. thats about all... whats 24 lawns to you. hell, find out where they are and target them.
  4. captaingreen

    captaingreen LawnSite Senior Member
    Posts: 471

    $2500 a month divided by 24 customers= $104.16 a month per customer
    $104.16 divided by 4 mows a month= $26.04 per cut
    I don't know what the market is like there, but does that sound about right. I would want to look at the properties first. As far as the equipment, if you need it I would make an offer.
  5. procut

    procut LawnSite Bronze Member
    Posts: 1,853

    All said and done about $9000. You have to figure those accounts arn't worth much considering he has no contracts.
  6. Reel B

    Reel B LawnSite Member
    Posts: 14

    I would also like to suggest that you ask him to personally introduce you to his customers if possible. With a contract its a courtesy thing and would help with the transition. Without contracts, it is a neccessity. If he doesn't introduce you and talk you up a little, you might as well not figure the accounts into the equation. They're not your customers in any way at that point.
  7. impactlandscaping

    impactlandscaping LawnSite Silver Member
    Posts: 2,332

    6K...equipment only, of course
  8. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,206

    The equipment is worth about $6500 and the accounts are worth 8% of the gross for 3 years. The money would be paid at the end of each year from an escrow account. You only pay for the accounts you retain.
  9. Smithers

    Smithers LawnSite Silver Member
    Posts: 2,265

    ed2hess, i am impressed. is that your rule or something that you were told? 8% is very little.

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