Well...It's Been Fun!

Discussion in 'Lawn Mowing' started by Ground Pounder, Aug 12, 2001.

  1. Ground Pounder

    Ground Pounder LawnSite Member
    Posts: 112

    A guy who works with my dad at a golf course was thinking of starting his own business. My dad told him of my company. This guy wanted to come up and see my equipment. He really liked the Exmark mowers. He asked about my accounts. Three days later he made an offer to buy my company. I could not pass up what he was offering!!....He even took the truck!

    With what I made, I will probably start another service.

    Thanks to all.......I'm outta here!
  2. Eric ELM

    Eric ELM Husband, Father, Friend, Angel
    Posts: 4,831

    What kind of service are you going to start? Just because you may not be mowing grass for a living, we can still coax you along as a homeowner mowing grass. :D

    Good luck in what ever you do and keep in touch with us LawnSite members.
  3. crazygator

    crazygator LawnSite Bronze Member
    Posts: 1,048

    Well I'm glad you did so good. Can I borrow sone money? hehe. Good luck with your future, and dont spend all your money in 1 place.
  4. awm

    awm LawnSite Gold Member
    Posts: 3,354

    you never know when that good break is coming.
    hope you know how to have money instead of just how to spend
    it . my sweet sweet wife has only one weekness. if its there it has to be spent. this is one situaation where its necessary for the right hand not to know what the left hand is doing.
    good luck to youTM
  5. just curious, how many accounts did you sell him?
  6. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    You were already thinking of selling?

    Or did this just happen spur of the moment?

    I'm not trying to sound stupid, I guess I'm just curious here. Obviously the guy had to be getting a decent deal on the ExMarks and truck or he wouldn't have bothered buying used, he would have just bought new. So how much profit could you have made on those items?

    And being a newer company yourself, how many accounts did you sell him? Were your accounts yearly, or pay by the cut? Because I just don't see how it would be profitable for him at this time of the year to buy accounts when the weather has been so dry lately unless he was buying into the rest of the yearly contract?

    Of course I don't know the details of your business transaction, but I think this guy who bought your stuff just made himself a bad decision.

    Any new company couldn't have been showing much profit their first year. Why in the heck would he buy someone elses startup when he could have just waited for the ideal time to start a new business which would have been early next season. :confused:
  7. Ground Pounder

    Ground Pounder LawnSite Member
    Posts: 112

    I am not sure why he just didn't do his own startup. Maybe because he is going to do this full time and needed the accounts.

    I itemized everything for him.

    2001 Dodge Ram 1500 4X4
    2001 International 5X14 trailer
    2001 Exmark 52" TTHP and a Proslide sulky
    Exmark 36" Metro HP
    Trimmer,edger,hedge trimmer, blower, Crapsman push mower
    and all 22 of my accounts who are on a weekly cut schedule.

    Take all of the business liabilities and debts, multiply that by three. Thats's what I made :D

    Life is Good!
  8. 1MajorTom

    1MajorTom Senior Moderator
    Posts: 6,074

    Just don't understand.

    None of my business, but at this point I am intrigued.

    9,000 in equipment minus 5 months depreication.
    Estimate price on truck would be $35,000 minus payments already paid

    Roughly $37,000 in equipment/vehicle?

    $37,000 times 3??

    So he paid $111,000 minus $37,000 = $74,000 for 22 accounts?

    Help me figure this out! My numbers seem in the ballpark.

    Why would he pay this much for 22 accounts???? Even if my estimates are off by 10,000, that would leave him paying 64K for 22 accounts which hold no guarantee.
  9. eslawns

    eslawns LawnSite Senior Member
    Posts: 712

    With what I made, I will probably start another service.

    And the lesson for the day is?

    If you buy a business, get a non-compete clause. Otherwise the guy who sold may come along and take away all your clients and use the money you gave him to run you out of town.
  10. Ground Pounder

    Ground Pounder LawnSite Member
    Posts: 112

    :angel: I guess it's just an episode of "Touched By An Angel":angel:

    Your numbers are not too far off.

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