buying accounts from a man with cancer

Discussion in 'Lawn Mowing' started by johnsonslawnmanagement, Sep 3, 2007.

  1. johnsonslawnmanagement

    johnsonslawnmanagement LawnSite Senior Member
    Messages: 908

    was approached by a man with cancer, wants to sell his accounts. 80-100 accounts, no contracts, $15k. I have no obligation to his equiptement, just the accounts. He will sign a no-compete-agreement and will take me to each account to meet them and exdplain that i will be taking over. what should i offer or should i run???????
  2. nitro121

    nitro121 LawnSite Senior Member
    Messages: 380

    make sure they are on board and then jump on the deal. Hire a full time guy, get another truck, 42" Z.....and make your money back and pay for the new equipment in 1 season. Then take the profits for the next 20 seasons. I'd love to run across a deal like that. I have 82 now and if I could get 80 more that easy....I'd be jumping for joy....I'd start the first offer at 10 grand may be the only one bidding.

    Or I'd offer him half up front....then base the rest of the pay out based on the clients you keep. If they all say sure no problem to your face and then cancel in paid him just to get your name out to 40 could have done that by walking up and knocking on doors. If a bunch drop off then he really didn't "Sell" you 80 - 100 accounts and he shouldn't be paid for it.

  3. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    how much $$$ do those accounts generate each month total?
  4. GrassBustersLawn

    GrassBustersLawn LawnSite Senior Member
    Messages: 981

    I would NEVER pay a set amount upfront. To much DOWN SIDE for YOU.

    I would also want to see his FINANCIALS. Is he making any PROFIT off of the 80 to 100 accounts? Or is he losing money servicing them? Could YOU make a profit at the rate HE is charging? (Because you WON'T be able to CHARGE MORE the first season or they will ALL QUIT YOU!)

    Also, do the FIT into YOUR current client base? (Not too big or too small or in another town, etc.)

    How are his collections? Does he BILL in a similar manner that you do? Do you send out ALL bills once a month via mail w/ return envelope WHILE HE collects money under the milk crate or waits for Grandma to write a check and tell about her hip problems????

    Once you know his numbers, make an offer based on a percentage of revenue COLLECTED. (So you don't OWE him money for work done that the CLIENTS never pay!)

    Good Luck!
  5. christmas79

    christmas79 LawnSite Member
    Messages: 208

    That's it I"ll buy them and send two of my guys there and cut them!
  6. NC Greenscaper

    NC Greenscaper LawnSite Senior Member
    Messages: 446

    I would visit all the customers, like you said and talk to them, but also look at the lawns and see what he is charging. Figure your profit on each account and then make him an offer based on a reasonable time to get your cash back. Also, make sure you have a provision for the accounts that don't make a year. 80 - 100 accounts would be a nice add on if they are good accounts.
  7. john_incircuit

    john_incircuit LawnSite Senior Member
    from NC
    Messages: 310

    The question is, how much profit will the 80 accounts generate for you.
  8. supercuts

    supercuts LawnSite Silver Member
    Messages: 2,808

    if your new and desperately seeking more work id say it might be wise. but at 100 lawns, thats $150 per account. im assuming he is getting at least $35 a lawn so you will be able to recoup that amount in one month. i personally would never buy lawns and wouldnt reccomend spending more than $50/per lawn
  9. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    I couldn't do it, too many variables throwing off the equation for me, but the guy is willing to go to bat with you, I like that, it's the proper way...
  10. bullethead

    bullethead LawnSite Senior Member
    from Texas
    Messages: 273

    How much do you spend acquiring clients thru advertising? $150 per client is reasonable. $100/client would be a bargain. I read a stat one day that most companies, whether they realize it or not, spend $300-$500 on advertising to acquire a client.

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