What to pay for a established lawn service ?

Discussion in 'Business Operations' started by LSRLAWNS, May 14, 2004.

  1. LSRLAWNS

    LSRLAWNS LawnSite Member
    from FL
    Posts: 2

    Does any one here have first hand experience with buying or selling a lawn service ? Was thinking of starting up a service again , but did not want to start from scratch. I know someone selling their service but wanted to get other points of view on it .
    All of his customers are on a yearly contract, is 50% of monthly contracts a fair price ? I have had a service before so i am not worried about running the service or keeping up with the work right from the start, what do you all think ?
     
  2. specialtylc

    specialtylc LawnSite Bronze Member
    Posts: 1,656

    I would think so. I wouldnt sell my company for any less.
     
  3. jajwrigh

    jajwrigh LawnSite Bronze Member
    Male, from Martinsville, IN
    Posts: 1,405

    Do you mean 50% one 1 month? or 50% of 6 months?
    If its the first one then go for it!
     
  4. DiscoveryLawn

    DiscoveryLawn LawnSite Senior Member
    Posts: 408

    Is this an applications company or mowing?
     
  5. LSRLAWNS

    LSRLAWNS LawnSite Member
    from FL
    Posts: 2

    It is a mowing company. And as far as the 50% of contracts, it would be at least for 6 months , haven't really sat down with him yet to discuss numbers. Was hoping to get some feed back from you guys first. Just wanted to see what others had paid etc.... Thanks for any input you can give.
     
  6. DiscoveryLawn

    DiscoveryLawn LawnSite Senior Member
    Posts: 408

    I bought a mowing company in 1999. I paid the price of 2 mowings plus the value of the equipment. I bought a fertilization company the same way this year. I paid for the price of two applications plus the value of the equipment.

    About the mowing, I regretted paying anything for those mowing customers. For the price I paid for those customers I could have spent on advertising and got more customers. Mowing customers are just so easy to get around here I just don't think they are worth paying for. But, since you are a start-up, it may be a good way to get started while you getting your feet wet.

    David
     
  7. bbone

    bbone LawnSite Member
    from Indiana
    Posts: 18

    Make sure the previous owner signs a non-compete agreement so he can't take your customers back after he sells to you. I paid 1/2 year mowing, equipment and goodwill for my biz.
     
  8. Team Gopher

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

  9. gr8cutter

    gr8cutter LawnSite Member
    Posts: 91

    I would not have any problems paying 2 months worth of service for good contracts. I would also buy the equipment if it is a good value.
     

Share This Page