Another Buying a Business Thread

Discussion in 'Lawn Mowing' started by LushGreenLawn, Sep 17, 2008.

  1. LushGreenLawn

    LushGreenLawn LawnSite Silver Member
    Messages: 2,120

    Hey Guys,

    I know people ask this alot, but to be honest, I haven't paid much attention to those threads, and I can't find them using the search feature. I have the opprotunity to purchase part of a small lawncare company.

    The Deal includes:

    Two ZTR Mowers, Toro Commercial 19HP/52" cut. They both have 500 hours on them. A BR600 Blower .About 20 accounts bringing in an average of around $40 each per cut for mowing. There are also incidentals like mulching, weeding, cleanups, ect. ect. but I don't know how much revenue that produces. The mowers seem to be in pretty good shape.

    The truck and trailer are not included, nor is any other handheld equipment.

    What do you think this is worth? What do you think the equipment by itself is worth?
  2. IN2MOWN

    IN2MOWN LawnSite Platinum Member
    Messages: 4,993

    10,000 for all of it.
  3. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    Ok lets look at this from what it really is...


    About 20 accounts = How many accounts are there ?

    that bring about 40 per cut = How much DO they bring in ?

    2 ZRT's, Pleasse explane this one....
    that simply makes NO sence at all... why would you have a ZTR on a lawn that only brings in 40.00 ?

    if they have 500 hrs on them, then the price " if taken care of VERY well. should be reduced by 40 to 50 %.....
    Simple math. There Used.
    the blower, should be for free, if Not it's worth about 40-$ 50.00

    If I really wanted this, I would go look at his books...
    in the lawn Business, a new owner takeing over will loose about 50% of the clients.
    were real Personal with our customers...
    now were down to 10 customers.
    the extra work... Dont figure it in.... NEVER count on anything that you dont have.

    The Question I have is, How much advertisement has been done in the last year ?
    and can you Prove it with paid recipts..

    If not, then the answer is none.

    I would offer, 4 to 5 thousand dollars. that's about all it's worth....
  4. LushGreenLawn

    LushGreenLawn LawnSite Silver Member
    Messages: 2,120

    My residential accounts average about $40 per account also, and I cut all of them with a ZTR. Why would you not, its the most efficient way to service thest properties. The properties look great when I leave, and I can service a
    $40 lawn by myself in about 20 minutes.

    I agree wth your statements about the equipment value and customers leaving, I know that going in.

    There has not been any advertising done in years, he hit his target number of accounts, and stopped. The only reason he has two mowers is that he could work a regular job 5 days a week, have his son help him and get all his accounts done on Saturday, and have Sunday off for Church.
    I am not keeping the name so thats kind of a moot point anyway. He has offered to go to each property with me so we can talk to the customers together, so that would help the retention rate a little bit.
  5. mississippiturf

    mississippiturf LawnSite Senior Member
    Messages: 674

    Two 52" 19 horse Toro's w/550 hours = $3,700 - $5,600 each.
    Br600 used selling on Ebay = $250-$325
    20 each $40 bi-weekly (assumption) lawns = $1,200

    Total package = $8,000 - $10,000

    Just my opinion, but I could be wrong!!!
  6. Lamonicaslawnservice

    Lamonicaslawnservice LawnSite Member
    Messages: 139

    I wouldnt offer anymore then 2000 for the accounts and thats pushing it. Im not sure about the mowers but the accounts are worth around 1,600 on a good day
  7. LushGreenLawn

    LushGreenLawn LawnSite Silver Member
    Messages: 2,120

    The accounts are all weekly...

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