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Purchase Price - Accts and ZTR??

Discussion in 'Lawn Mowing' started by lcncapo1, Oct 13, 2008.

  1. lcncapo1

    lcncapo1 LawnSite Member
    Posts: 24

    Hey Guys, there is a local co selling off his residential accts as well as a ztr.

    the info he has given me is that there are 22 accts avg price of $25 per mow, none under contract. also 13 Plowing accts as well. they are all located within my customer route or very close. also the ZTR is a 2005 ferris 60" w/suspension, 1000 hrs. so far he wont separate. what is this package worth?
    he doesn't have a price in mind but he said he will accept any reasonable offer. my main interest is just the accts, but could use another ztr.


    btw, i don't mean to be a dick, but given the nature of some of the people and posts on this site, PLEASE no smart ass comments or meaningless B.S.
    To those that can offer helpful info, thank you and it is greatly appreciated

    Thank You,

    Rob
     
  2. djchiodo3

    djchiodo3 LawnSite Senior Member
    Posts: 345

    The 22 -$25 per cut accounts are worthless if they are not long term contracted accounts. I can't help you on the plowing. I don't plow. The only thing you are guaranteed with the purchase of this small business is a used mower.
     
  3. dura to the max

    dura to the max LawnSite Silver Member
    from georgia
    Posts: 2,246

    his prices seem low, they better be some small lawns if you want to make anything off them. thats $550/week IF theyre all weekly. thats IF you can keep the accounts. im not attacking you personally, but you have no guarantee that you'll be able to keep the customers, customers are so fickle...sounds like a risk w/ a lot of chance and not a great chance at a good reward.

    most i would give is $3500 (or the price of the ZTR). IMO the lawns really arent worth giving him a dime for.
     
  4. Scagguy

    Scagguy LawnSite Bronze Member
    Posts: 1,522

    It's worth whatever the Z is worth. Nothing under contract is a deal killer imo. So the question is.....do you need another mower?
     
  5. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    Make him up an offer where-by you pay for the mower now and the customers that stay with you for a set amount of time. This is how I sold my uncontracted accounts in MD and it worked out real well for both myself and the 2 companies that bought my accounts. I sold the accounts in May and they owed me for the accounts that they still had at the end of September. They paid up with no problem.
     
  6. dura to the max

    dura to the max LawnSite Silver Member
    from georgia
    Posts: 2,246

    ^^^^^^^^sounds like a plan to me...
     
  7. lcncapo1

    lcncapo1 LawnSite Member
    Posts: 24

    i pretty much figured thats what the general response would be which is what i agree with. say we can set it up like you had said , where i pay him for each acct in july or august (provided that they are still current and paying customers), what would each acct be worth? how do most price contracted accts? fyi, the usual mowing season for me is roughly 30 cuts.

    Thanks Again,
    Rob
     
  8. Alpha Property

    Alpha Property LawnSite Senior Member
    Posts: 409

    60 inch mower to cut $25/cut properties? seams like a funny combination no?
     
  9. dura to the max

    dura to the max LawnSite Silver Member
    from georgia
    Posts: 2,246

    i would think if you can hold them that long 50% of the yearly value is about right. (this should include only normal maintenance. extras such as straw, mulch, flowers, pruning, etc...are all yours, he need not even know about them.)
     
  10. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    I'd start at as small an amount as possible. Say one month's total receipts. It's a negotiation, don't let him get mad and walk away. This is how it's done.
     

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