what should I pay for this?

Discussion in 'Business Operations' started by poonero, Jun 13, 2004.

  1. poonero

    poonero LawnSite Member
    from ny
    Posts: 56

    Hey guys, first post. Tons of great info so far. A few quick questions.

    Just started off on my own after working for someone for a few years. Im about 3 days a week now. Slowly building a client list

    I have had the oppurtunity to purchace another set of clients, NO EQUIPMENT will be transfered, from a retiring guy.

    His monthly revenue is about 9K broke up via 50% commercial and 50 % residental. Our area cuts about 27 times a year


    Thanks in advance.
  2. dcondon

    dcondon LawnSite Silver Member
    Posts: 2,246

    I would never PURCHASE an account. What will happen if you buy it and then they decide they don?t want you. You can get plenty of work without buying. just my 2 cents
  3. BCSteel

    BCSteel LawnSite Senior Member
    Posts: 876

    One months gross of each account, IF you get the accounts. Ask to see all his numbers on the accounts. Hours for mowing, pruning, edging? How much fert, pesticide, lime? What are the drive times involved to each one? And most important, whats the $/hr on each account using what equipment.
  4. GreenMonster

    GreenMonster LawnSite Silver Member
    from NH
    Posts: 2,702

    I tried to buy out two small op's over the winter. Both were a PITA, ended up doing neither.

    Invest the money in advertising and get your own clients. IMO, from experience.
  5. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Posts: 1,847

    You know, thats BRILIANT! Ill go out and low bid a handful of accounts in BC and then sell you these LOSS Making accounts for one months gross. BRILLIANT i say again.

    Isnt the point of this business to make profit? Base your purchase price on his net for these accounts, not gross. If you think a fraction of a years net is acceptable, then offer that much. If you think a multiple of a years net is acceptable, then offer that much. Selling price is pretty much dependant on where you two meet with acceptability of that multiple.
  6. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

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