Sound like a good deal?

Discussion in 'Lawn Mowing' started by Toro52, Apr 19, 2004.

  1. Toro52

    Toro52 LawnSite Member
    from PA
    Posts: 22

    I got a call the other day from one of my neighbors asking me if i ant to buy his business. He has 35-40 grass accounts. He wants $20K for all the grass customers, 2exmark wb's, 1 Lazer, 6X12 trailer, and possibly his work truck, he is getting into the hardscaping business and doesnt have time to do the grass. What do you guys think i should do is $20K a good price?
     
  2. HighGrass

    HighGrass LawnSite Bronze Member
    from Z5 MA
    Posts: 1,237

    A couple of thoughts:

    1- Recently, a local guy sold his accounts and equipment. He had about 50-75 accounts, 2 trucks, 5 Mowers (2 Scags, 3- Non-commercial) Some clean-up items (Blowers, vacs etc) and a couple of trucks and trailers. Nothing in this lot was in anyhting more than fair shape. He sold the whole lot for $200,000.00!

    2-If he asked for $20,000.00 he might take less.

    3-Will all of these accounts stay with you? Have they been notified of the possible transition? I would get a list of the accounts so you could make a few "Random" calls.

    4-Have you looked at his books? Look at the gross and net profits for last year.

    5-Are there any loans on his equipment?

    It sounds like an investment worth looking into, just be look at everything! GOOD LUCK!
     
  3. imograss

    imograss LawnSite Senior Member
    Posts: 796

    If you can be assured the clients will stay with you after the transition it sounds like a good deal. I bought my business in a similar way 6yrs ago.
     

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