Buying/Selling Business

Discussion in 'Lawn Mowing' started by Fresh Cut, Feb 24, 2006.

  1. Fresh Cut

    Fresh Cut LawnSite Member
    Messages: 21

    I'm sure this is commonly discussed on this site, but I couldn't seem to find anything by searching. I wanted to know if there is a standard for pricing the sale or purchase of a maintenance business? Does anyone know a good internet site dealing with this?
  2. Fresh Cut

    Fresh Cut LawnSite Member
    Messages: 21

    Nothing, huh!? It sure would be nice if I could get a little help here. I'm sure with the quantity and quality of the people frequenting this site, someone knows a generally accepted starting point for the purchase or sale of a business. Thanks for any input.
  3. Fresh Cut

    Fresh Cut LawnSite Member
    Messages: 21

    You guys are killin' me!?:cry:
  4. cgrappler135

    cgrappler135 LawnSite Member
    Messages: 193

    not sure, sorry!!!!
  5. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Messages: 3,065

    Patience,lol We just bought out a business a few weeks ago. We bought the equipment and customer list. A lot of guys will tell you they won't pay for any type of list, but when its the only way the seller will sell its kinda hard not to. I only paid for this list because his customers have been with him for years and years. The list consists of 60% res. and 40% commercial accounts. These accounts both,res. and commercial also have spring clean ups to mulch, hedge trimming etc. they seem to spend money, not like most customers who only want mowing. Look at the sellers books, see what they brought in over the past couple of years. See if his customers are loyal or are there a lot of one year type. If its equipment, just look at it, is it in decent shape, is it equipment you can use or not. Get book value on all the equipment. We didn't pay more than a months worth of mowing for the list and we bought the equipment for a great price. If its worth buying, cash is a good tool to lower their price. We knocked off $300.00 from his price. IMHO, if he is serious about selling and they are good customers with nice lawns he will (should) have no problem writting a letter to his former customers.

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