Buying Accounts/Business

Discussion in 'Lawn Mowing' started by billyebrown, Aug 20, 2002.

  1. billyebrown

    billyebrown LawnSite Member
    Messages: 24

    Although I have been reading/learning from for several months this is my first post. An opportunity has come up in my area for a small lawn care business. I recently went part-time at my regular job so I thought this might be a good opportunity too jump in. I have been thinking about this for awhile.

    Here is the Info below. I would appreciate any advice on the situation.

    Trailer - single axel - 6x12 - Wing Gate - fairly new (my est $800)
    2000 Exmark Walk-behind 48in - good shape (my est $1800)

    Stihl Blower (my est $200)

    2 homelite weedeaters (my est $250)

    38in White riding mower that does not run (my est $200)

    13 accounts that bring in $330 per mowing. Quater to half acre (From reading on the lawnsite the going rate for accounts is 1 month or 10% so about $1300). Takes about 12-15 hours to mow all of them including travel time.

    He is asking $6100.

    I am thinking $4500 is a pretty good offer but I don't think he will take it. He has indicated several have called and one was pretty interested. Any opinions or advice!

  2. KLMlawn

    KLMlawn LawnSite Senior Member
    Messages: 443

    I don't know exactly what a "wing" gate trailer is. I have a 6x12 enclosed, single axle,with roof vent, racks, hook,lights, shelves, etc. and I have been told it is pretty good condition for a '97 and that I could get about $2500 for it the way it sits, which is collectively what I put into it, so I am assuming from your estimated price that it is an open trailer, which sounds about right. The rest of your estimates sound about right for the equipment.
    Now, for the accounts ... if they are quality accounts with NO contract, then I wouldn't give more than $1000-$1300 for them, if they are on contracts, then they might be worth a bit more ... but to whom??
    To him, definately, at least for the rest of this year, but who will hold the gun to their head for them to sign with you next year?
    It also is getting close to the end of the season, so it is not like you stand to make that much off of them. You can also expect a probable 20-30% drop off for next season, whether he keeps them or you get them.
    I would give him $1000 now, or if you REALLY WANT THEM, and he won't budge on his price, tell him half of the value of the accounts now, and half next season after they sign with you.

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