Looking to Buy?

Discussion in 'Starting a Lawn Care Business' started by CutsLawnCarePlus, Jan 18, 2004.

  1. CutsLawnCarePlus

    CutsLawnCarePlus LawnSite Member
    Posts: 41

    I'm currently in the process of buying a existing lawn care, I have managed this business for 5 years, with the retirement of my boss I have decided to bite the bullet and buy the business. This business includes 60 accounts, a mix of res and commercial. A 25' covered trailer, 16' open trailer, one 3500 dump truck, One Scag 61 three wheeler, one scag wb 51, 2 ariens 21" wb, 2 stilhl blowers, 2 husky weed wackers, a aerator and a edger, with a few other various tools. I also will be taking over the fertilization and weed control portion of this business. The final price has come in at 175,000 , is it just me or does that seem high, and should I be thinking about starting from scratch?
     
  2. SHOW ME STATE RIDER

    SHOW ME STATE RIDER LawnSite Member
    from MO
    Posts: 63

    Seems high to me, What's the breakdown? Equipment can't be that much. What do you gross in sales each year?
     
  3. Avery

    Avery LawnSite Bronze Member
    Posts: 1,389

    Seems very high to me. You have been involved in the business for five years so you should have some idea of what it is worth. That figure is out of the question IMO. Post up the gross sales and we can help you a little more.
     
  4. CutsLawnCarePlus

    CutsLawnCarePlus LawnSite Member
    Posts: 41

    Gross Sales is on average 80,000 year. That includes fert/weed control. Equipment value is about 60,000. This is a well est. business and has been a part of this area for 24 years , does that add to the price ? I'm assuming it does.
     
  5. Avery

    Avery LawnSite Bronze Member
    Posts: 1,389

    With gross sales that low he is at least 100k to high on his asking price. I do not think the 24 years helps any. Probably hurts due to the fact that in 24 years he has only grown to 80K per year. Something is wrong with that IMO. If you really want it offer 65k-70k. Anymore that that and you are paying too much.
     
  6. Clay

    Clay LawnSite Member
    Posts: 236

    6 months gross plus equipment value.... no more.... (If it is really quality accounts, with guarantee of transfer, and no compete clause)

    Are you sure the equipment is worth $60,000??? That's a lot of money for used equipment to only gross 80,000....

    Good Luck, Clay
     
  7. SHOW ME STATE RIDER

    SHOW ME STATE RIDER LawnSite Member
    from MO
    Posts: 63

    I can't agree more. 60000 for epuipment? What kind of dump? mowers can't be worth 10000 a piece. You could go buy the equipment new for that. 80000 in sales? Avery said it 24years and thats it. No go. I would start my own and tell him to start # 25.
     
  8. DUSTYCEDAR

    DUSTYCEDAR LawnSite Fanatic
    from PA
    Posts: 5,137

    run run away from that deal
    look 2 buy the acc and forget the equipment get new stuff
    he is ripping u off
     
  9. CutsLawnCarePlus

    CutsLawnCarePlus LawnSite Member
    Posts: 41

    Thanks for all of the advice, I just wanted to comment on a few things, He is only grossing 80,000 in the lawn care bc he is also involved in the landscape business, and that is his money maker, he has not put much time into the lawn portion of this. These accounts ( 75% turn key) (Lake Michigan) have been with him from the start. His name is great in this area, and i have a feeling that is why he is so High in price. As for the equipment it is worth 60,000 there is a lot of stuff that he is selling, I have no problem paying that for it bc it's worth it, and he does maintain his stuff better then most. It's the other 115,000 for the name, accounts that has me tied up in knots on what to do. I mean sure I can start out on my own with new stuff go in debt 80,000 for what I know I want and need, but not be quaranteed one single contract and not have a repitable name to go with it. So any help with this would be appreciated
     
  10. DUSTYCEDAR

    DUSTYCEDAR LawnSite Fanatic
    from PA
    Posts: 5,137

    when the customers find out he is selling
    some will look elsewhere that is your chance go 4 it dont over pay 4 something u can get 4 free
     

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