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Buying my partner out!

Discussion in 'Lawn Mowing' started by Billz, Oct 2, 2006.

  1. Billz

    Billz LawnSite Member
    Messages: 181

    I am going to buy my partner out of our business, and need to determine what the value of all our equipment is. Is there a "blue book" for lawn equipment too? I will list it all and see if you guys can help me figure out what they might be worth

    2002 f-350 with plows, and 61,000 miles bluebook 12,885
    1995 52in toro w/b belt drive and t-bar handles 13 hp kaw motor
    2004 exmark lazer Z 27/60 with 600 hrs and bagger system
    1995 ferris 36in w/b bought at yard sale for 150, we never used it
    2005 billygoat 18 hp leafmulcher
    2004 billygoat 10 hp w/b blower
    2002 echo backpack blower 603
    2005 echo backpack blower 750
    2000 echo curved shaft trimmer-old
    2000 echo curved shaft edger- better than trimmer
    2004 echo srm210 trimmer
    2005 echo edger
    2004 echo hedge trimmers about 24"
    trailor used-bought this season for 2000

    Hope this is enough info, thanks!

  2. noseha

    noseha LawnSite Senior Member
    from MI
    Messages: 554

  3. lawnwizards

    lawnwizards LawnSite Silver Member
    Messages: 2,439

    sell it all, split the total then start all over fresh by yourself.:waving:
  4. LawnGuy73

    LawnGuy73 LawnSite Bronze Member
    Messages: 1,946

    I agree 110%

    FATWEASEL LawnSite Senior Member
    from NC
    Messages: 326

    Seems like that would cost alot more money than buying his partner out. For instance, if you have a $300 (new) and sell it at $220 (used value) and then split the money, Billz ends up with $110 to replace a $300 trimmer.

    Otherwise, he only needs to spend $110 to have what should be pretty good equipment free and clear. The exception might be the older stuff like the Toro and the Ferris where you might want to end up with cash to buy one new piece of equipment. Of course, it wouldn't matter if you did that before or after the buyout unless your evaluations were off to your bad.

    Everything else looks like its pretty new.:)

  6. Billz

    Billz LawnSite Member
    Messages: 181

    yeah, I don't want to sell it all for half of what it would cost to replace, then replace it at full cost...I don't have to pay my partner for any of the accounts he brought into the company which were more than I brought in, just for half of what the equipment is worth... sounded more than fair to me.

    here is what we paid about:

    bg truckloader-2800
    bg blower-800
    echo bp603-299
    echo bp750-429
    echo curved trimmer&edger-200 total
    echo trimmer210-199
    echo edger-219
    echo hedgetrimmers-299

    total we spent on everything- 44,295

    Anyone have an idea on the exmark, I would think it would be worth 6000 or so?

    I will end up buying a new exmark w/b next year and get rid of the other 2, or maybe keep as backups, but he will still want half of their value, as he spent the same money as I did.
  7. trk53

    trk53 LawnSite Member
    Messages: 35

    Let me get understand this . If you all ready own 1/2 of the business then you are buying his 1/2 of 44295.00 = 22147.50 is actually what you are buying out. The fair thing is ask yourself if he was buying you out what would you except? That the fairest answer.
  8. Rickco

    Rickco LawnSite Member
    Messages: 135

    Together you spent 44,295. So your 1/2 is 22,147.50,less depriciation. I would think that 15,000 would be about right.
  9. Uranus

    Uranus LawnSite Bronze Member
    from Mass
    Messages: 1,624

    depends on how big of an a$$ your partner is. If he thinks everything is "like new" then you will be shelling out at least 20-22 thousand. But "we" know that the equipment is not really worth 44 grand. I'd offer him $17,000 for his half of things and see how offended he is. If he don't like the number don't go over 20 thousand. Tell him that you 2 can always sell the goods and split whats left. Be ready to loose a friend.
  10. Billz

    Billz LawnSite Member
    Messages: 181

    well, I know the value of the truck is only about 14.000 and I am sure the exmark is down maybe 25% too. I don't want to give him half of what we paid originally, just half of what it all is worth... I don't want to pay him 12,000 for a truck that is worth 14,000 for example, or the money I invested is not taken into consideration...

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