Purchase Lawn Care Business

Discussion in 'Business Operations' started by earthly, Feb 18, 2008.

  1. earthly

    earthly LawnSite Member
    from IOWA
    Posts: 243

    Tomorrow I have the chance to purchase an existing lawn care business. The guy told me that he had been in business 11 years, has 350 chemical clients, 100 mowing, and about 20 irrigation. He said that it is about 50/50 residential and commercial. He does not have the contracts for this year, he said he sends out bids every year. So basically he is selling just BLUE SKY He only wants $7,000 for the list of clients or so called clients. I know that I need to find out how long they have been on the books, how many are residential and commerical and so on. But why is he selling so cheep? What advice can you give me and whats your opinion on the situation. HELP:confused: I could easily make back my investment in the first month plus more!
     
  2. BUCKEYE MOWING

    BUCKEYE MOWING LawnSite Bronze Member
    Posts: 1,169

    He must want out bad...Do you get any equipment for the 7g's ?
     
  3. ED'S LAWNCARE

    ED'S LAWNCARE LawnSite Senior Member
    Posts: 361

    Boy this sounds like a scam, is there any equiptment with the purchase? If not run like fire... Just think how well 7k in advertising could do you are basically doing the same thing and still have to advertise....:hammerhead:
     
  4. earthly

    earthly LawnSite Member
    from IOWA
    Posts: 243

    no equipment with this deal, he said he has to take care of his in-laws and doesn't have the time to do everything the right way, i have seen lots of there trucks around town and they seem to be a legit business, he said he would be willing to write letters to his customers saying i bought the business. He would sell the equipment to but i don't want it, it would cost extra. I only do landscaping and lawn care now, no mowing, i want the chemical clients residential. A company that i work with for mowing would go half with me and take the mowing so i don't know. He is meeting with a guy today and i have a feeling if it is as good as it sounds he will by it. I am trying to stay optimistic.

    Or should i just:walking:away
     
  5. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Posts: 1,847

    You could easily make your money back simply by flipping his fert clients. There is big money out there now chasing fert clients. Keep digging. Acquisitions are a very valid way of growing your business. I aim to do one a year...
     
  6. earthly

    earthly LawnSite Member
    from IOWA
    Posts: 243


    how do you find them? has it worked out very well for you? and what is the average size company you buy?
     
  7. Mow Mony

    Mow Mony LawnSite Member
    from VA
    Posts: 229

    sounds like an awesome opportunity. I would try to figure out someway to make it work if it is LEGIT, 7k in advertising isn't going to net you that many clients.
     
  8. earthly

    earthly LawnSite Member
    from IOWA
    Posts: 243

    i agree if it is legit! i meet with him tuesday (today) at noon, i wil keep you posted
     
  9. Rayholio

    Rayholio LawnSite Bronze Member
    Posts: 1,461

    that's $20 per customer.. even if you only keep 20% of them, it's a great deal...

    ask for a non-compete, and you're golden!
     
  10. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Posts: 1,847

    Earthly, most of the time they find me. I tend to be outgoing and dont know many strangers. Consequently, I usually am one of the first to hear about things going down. Also, most competitors know that Im always looking to buy so they talk to me first.

    Ive purchased solo opps before and just recently purchased one with a handful of employees.

    If you have any questions, pm me and I will give you contact info.
     

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