Wanting to buy a business. Is it a good idea.

Discussion in 'Starting a Lawn Care Business' started by rnewton, Jun 22, 2006.

  1. rnewton

    rnewton LawnSite Member
    from 72801
    Posts: 3

    I am wanting to buy out a business and add it to mine. This guy has a snapper zero turn mower, a stihl backpack blower, a husq backpk blower, a shindawai trimmer, husq chainsaw, and a few other things. All this and 15, maybe more clients for $5000 . Is it worth it or should I run. I feel that it is worth it considering I can make 5 grand pretty quick off 15 clients.
     
  2. Lynch Landscaping

    Lynch Landscaping LawnSite Member
    Posts: 218

    I would never buy a business, but I would buy their equipment.
     
  3. Adam3669

    Adam3669 LawnSite Senior Member
    Posts: 311

    are these clients under contract? how will the contract transfer?

    if not...i'd walk.
     
  4. rnewton

    rnewton LawnSite Member
    from 72801
    Posts: 3

    None of them are under contract but I plan on talking to each of the clients before the transfer takes place to make sure they will stick with me. Should I make out a contract for them.
     
  5. abuckeye

    abuckeye LawnSite Member
    Posts: 93

    Run, I bought a company with 24 accounts and kept 10. I did not lose them due my fault. I did have a contract that if they did not stay I did not pay as much money. That's the risk you run
     
  6. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    What is the equipment worth, Thats what I would base it on
     
  7. fiveoboy01

    fiveoboy01 LawnSite Silver Member
    Posts: 2,988

    Exactly. There is no guarantee you'll keep any of those customers.
     
  8. scotty2

    scotty2 LawnSite Member
    Posts: 24

    I baught one company out this year and they had 35 accounts not signed but the thing was that I had to sign them. The rule that I heard was you pay for 2 mowings so if you buy 35 accounts that would be 35 X 2 = 70 now times that buy the price per account( yes every account is different but you should get a gross of all accounts ) say 25.00 per account 25.00 X 70 = 1750 for the company:usflag:
     
  9. Mow It All

    Mow It All LawnSite Member
    Posts: 22

    Hey I bought my buisness established. I made the owner take me to each one and have them sign contracts. I did lose 10 out of 75 but he worked the price to show that. As far as the equipment...........I bought it 2 months ago, put a new motor on my 52" Toro, bought a new back pack, and a new wacker.......All bad. I got beat on that end but what can you do.
     
  10. dcondon

    dcondon LawnSite Silver Member
    Posts: 2,246

    No way would I buy out another business and accounts. I can see buying some equip and that's it!!!! JMO
     

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