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Buying a business

Discussion in 'Business Operations' started by Weedwackers, Aug 6, 2002.

  1. Weedwackers

    Weedwackers LawnSite Member
    from SC
    Messages: 3

    Help Pls I have a Guy that want to sell me his clients . He has 26 accounts and said he makes about $3000 a month and he wants $6500 for them . Is this a good deal if not Pls tell Me what you think they are worth. Thanks for all your Help.
  2. CSRA Landscaping

    CSRA Landscaping LawnSite Bronze Member
    Messages: 1,232

    Local greetings. :) That doesn't sound like it'd be too profitable to me. 26 accounts @ $3k/month only makes it $115 and some change per month, per account. too much running around, in my opinion. Maybe that's why he wants out?
  3. heygrassman

    heygrassman LawnSite Senior Member
    Messages: 509

  4. nu83

    nu83 LawnSite Member
    from omaha
    Messages: 238

    I would not buy them, its a bad deal. First off you have to check out the accounts, where are they located, how much do they pay, how long do they take to mow, are they going to stay when you buy them? Too many variables to lay out $6k. It doesn;t sound like he is making any money on them so to me they would be worth zero. For a good account I would be willing to pay 2 weeks gross per account.
  5. 1MajorTom

    1MajorTom Former Moderator
    Messages: 6,073

    Not enough info to really go on.

    Are these strictly mowing accounts, or are these full service ones that take the bed maintenance, hedge maintenance, aerations, etc? And if they are full service ones, are the extras added on and not included in the $3000.00?

    How closely knit of a route is this? Lots of travel involved to get to these 26 accounts?

    To my husband and myself, they would not be worth anything.
    We prefer to pick up our own accounts. Why pay for them?

    What makes these 26 accounts so special that you would want to consider forking over 6500 bucks for them?
    Are you new to the biz and think this would be an easy start-up?

    And who says that these 26 customers would stay with your services after you bought them?
    Is this guy really getting out of the business, or is he trying to get rid of his pain in the butt customers?

    How big are the properties that we are talking about?

    Just too many unanswered questions here.

    And if you take the rough estimate of $3000.00 a month and divide that by 26 cuttings that is $115.38. Now divide that by 4 weeks in a month (some months have 5 weeks, but we'll go with 4) and that's $28.84 a customer. (That's assuming that they get weekly cuts.) We're talking about mowing here, no add ons.
    So depending upon the size, unless really small, $28.84 a cut isn't anything too special.

    Give us more info about this.

    BTW, welcome to Lawnsite.
  6. Lanelle

    Lanelle LawnSite Bronze Member
    Messages: 1,361

    :blob4: Big red flags on this subject. I don't want to discourage you but the verdict on this is rarely enthusiastic. Tell us more of the particulars.
  7. Art Stubbs handy 58

    Art Stubbs handy 58 LawnSite Member
    Messages: 132


    Is there any equipment involved in the sale???

    Can't justify $28.00 per account.... not unless they are immaculant kept accounts and you won't have to do a thing, and that might be a far, far chance for $28.00 :blob2: :blob2:
  8. $2250 if they were where you would want them.
  9. eggy

    eggy LawnSite Bronze Member
    Messages: 1,085

    As you can see lawn mowing only equals a buisness worth nothing.............The best around here I have seen is a guy will buy your equipment and you give him your route.......The thought on lawn mowing is , if you want out and nobody buys your accounts they will appear anyway looking for someone. The buisness this area that is sold for anything is chemical applications.

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