what 80000?????

Discussion in 'Lawn Mowing' started by sildoc, Feb 21, 2004.

  1. sildoc

    sildoc LawnSite Silver Member
    Posts: 2,925

    Ok, I inquired on a business that they wanted to sell. 26 full service accounts 5 commercial?
    1-f250 1995 diesel extended cab
    1 Walker 48" 1995
    1- echo string trimmer
    1- echo edger
    1- echo backpack blower 40cc
    1- 5 gal back pack sprayer
    1- 100 lbs fert spreader
    1- 16' * 7' trailer
    2-toro commercial 21" mowers probably 2000 or so.
    and misc. hand tools.

    I had to sign a waiver for compitition to see what the paperwork was and what his contracts were.

    All in all he had 100000 in contracts.
    Not anywhere in his contracts did it say he could sell and they would have to use whoever for the rest of the year.

    I offered 15000.00 to the realestate agent. (expect not to hear back from her.)
    What the heck. I figure there is maybe 15000.00 worth of equiptment but no more. maybe 9 grand on the contracts and that is a maybe.

    I asked to buy contracts for 5 grand but they said all or none.
    Oh well.
    Can you belive 80 grand.
    heck I thinK I will put Mine up for 70 grand.
     
  2. vipermanz

    vipermanz LawnSite Bronze Member
    Posts: 1,773

    not even close to 15k in equipment, more like 10k
     
  3. AGLawnCare

    AGLawnCare LawnSite Member
    Posts: 33

    you think 10k might be less depends on what shape it is in. if this guy gets that much let me know because then mine is for sale.
     
  4. dkeisala

    dkeisala LawnSite Senior Member
    Posts: 911

    What the hell does a real estate agent know about valueing and selling a landscape maintenance business? Most of them can barely sell real estate.
     
  5. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    You need a lot more information from his books before you can make a determination of what the business is worth. Ive bought businesses in the past, you need to have your CPA and lawyer look everything over and then they can report back to you and suggest an educated offer.

    My business was for sale for a short time and people thought I was nuts with my asking price or i should say my Accnt's asking price. i was told I wouldent see one-third what I was asking. But I had two serious offers (documents/lawyers etc...) Both were within $10,000.00 of the six figure asking price.... I didnt even have a clue what my business was worth before that..
     
  6. Ryan Lightning

    Ryan Lightning LawnSite Senior Member
    from CA
    Posts: 554

    Hes doing something right if he can service $100,000 worth of accounts with just one truck a 48" walker and 2, 21's. And only about 30 stops a week.
    How many guys are doing the work?
     
  7. J Hisch

    J Hisch LawnSite Senior Member
    Posts: 952

    Its worth what your willing to pay.... You have to decide if you want it or not. before you agree to buy they need to help you contact all the customers to see if they would change or not. Most of them wont especially if you are a legit business now. I took over accounts from others before and had good success.
     
  8. bob

    bob LawnSite Platinum Member
    from DE
    Posts: 4,254

    I thought the same thing. Most if us would need a 2 man crew, with 2 mowers to hit 100K.
     

Share This Page