what's everybody's opinion

Discussion in 'Lawn Mowing' started by foo569, Jun 11, 2001.

  1. foo569

    foo569 LawnSite Member
    Posts: 16

    tonight i am going to look at a lawn business to buy the guy is asking 120K. he says he makes 160K/net per year.I believe him and he is a pretty nice guy . i mean i've only spoke to him over the phone, but everything sounds good.so i just wanted to know what all of your opinions are.






    Jonathan Kiwacz
     
  2. Volhunter

    Volhunter LawnSite Member
    from TN
    Posts: 33

    I don't know about everybody else, but I would need a LOT more information to form an opinion on a purchase that big.
     
  3. Pauls Mowing

    Pauls Mowing LawnSite Member
    Posts: 207

    I'm more interested in your opinion after you see his books, tax returns, and talked to your banker and attorney.

    Paul
     
  4. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    I'd educate myself about EVERY thing ....this is a Good Size Outfit ...with 160k "NET" .... it takes a fat monthly income for that amount of loot to trickle down into take home pay over 13K per month ...

    look at everything real close .......than do yourself a favor .....get an outside advisor or CPA in small business financial deals ...it may cost $1k ...to perform an "Audit" .....but if your serious it will be $$ well spent

    Good Luck ;->
     
  5. LJ lawn

    LJ lawn LawnSite Senior Member
    from NJ
    Posts: 356

    how many properties does this guy do? and will you be able to handle it all.
     
  6. ronslawncare

    ronslawncare LawnSite Senior Member
    Posts: 541

    i said this once before but i think you need to here this story.i was going to buy a scag off another landscaper at one time and the guy ask me do you want to buy 200 acounts .i think he said 4,000 .i told him im not interested i get my own accounts .anyway i came back a few weeks later to check if he still had the scag for sale .he sold everything .the guy that bought the acounts lost 75 acounts the first week then tried to get his money back but once you sign your screwed.plus some of the accounts that left the buyer went back to the original company lol. so if you feel like blowing your money this would be a great place to start.....
     
  7. Earthworks II

    Earthworks II LawnSite Member
    from Arizona
    Posts: 4

    I don't know a whole lot cuz i just started up last October 2000. But from my own experience i wouldn't sign anything till you have an outside party take a look. I bought a small landscape & lawn maint. Bus. from a guy. It was to have generated over 75,000 annually gross. It came with a bunch of equipment and about 50 clients. As of now over 50% of these clients have gone for various reasons and the equipment requires either constant maintenance or complete replacment.
    I kick myself for not doing the homework. It would have been better just going out buying new stuff and soliciting my own clients. I'm in the process of re-building the biz but it hasn't been easy by far. Take your time. relax, don't jump in without serious evaluation. If it's there today it'll be there tomorrow. Good Luck.
     
  8. Eric ELM

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

    For $120,000 you could start one heck of a business. For a lot less you could also start one heck of a business. As said before here, we would need a lot more information on this to even thing of forming an opinion on this deal. If you are getting a nice shop on some acrage and lots of equipment, it might be a good deal.
     
  9. Toroguy

    Toroguy LawnSite Bronze Member
    Posts: 1,075

    Based on your quoted figures, you should buy it and pay the current owner to run it. Give him $50,000 Then pocket the $70,000 extra net. When you are sure of the customer loyalty send the owner/mgr. down the retirement path.

    If you were a manager for him now, you would have a better grasp of his situation. Its funny none of his workers will buy him out? That doesnt look good.

    Check his tax records,see his rates, ask him questions, check the equipment, is a shop part of the sale, etc, etc.
     
  10. Currier

    Currier LawnSite Senior Member
    Posts: 564

    WOW! could you imagine going from 0 to 160 K net with the swipe of a pen? I have a hard enough time just keeping up with regular growth. They say that you must control growth or it can kill your business. I guess if you are up to the challenge that goes with an outfit that size then you have some figuring to do. For me that would be a no brainer. I am too chicken to take a risk like that...but then I'll probably never run with the big dogs.

    p.s. check Eric's site links about buying businesses. Lots of good fodder there for you to consider.
     

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