Buyout Price Suggestions

Discussion in 'Lawn Mowing' started by SLCINC, Jul 3, 2008.


    SLCINC LawnSite Member
    Messages: 110

    Ok, I am interested in buying a guy out but Im not sure of the right price. He Has:
    '95 gmc 2500 102k with western plow
    another fairly new snow way plow (no truck though)
    exmark 50" mower 800 hrs. rider
    walk behind toro 40" 300 hrs
    16' open trailer
    huqvarna 42" mower w/ dethatcher and aerator attachment
    bunch of blowers and whips and snow blowers

    Also included:
    55 lawn customers grossing about 5,000/mo. in mowing only
    65-70 snow removal accounts all pretty much residential around $25 per push

    How much would you pay for all of this if you were interested in purchasing another LCO? Thanks in advance
  2. doubleedge

    doubleedge LawnSite Senior Member
    from ND
    Messages: 911

    diesel truck? modle of ztr? (floating/fixed)(hydro/belt) walkbehind? how many and what kind of blowers, whips, and snow blowers?

    SLCINC LawnSite Member
    Messages: 110

    no diesel engine. Just want to know a ballpark figure here. Just shoot me a number that comes to your head, that you would pay

    SLCINC LawnSite Member
    Messages: 110

    anyone have any ideas???????????????
  5. lazyguy2

    lazyguy2 LawnSite Member
    from Iowa
    Messages: 3

    65k-85k sounds reasonable. Lots of variables. GL
  6. procut

    procut LawnSite Bronze Member
    Messages: 1,852

    Without seeing it, I'd guess the equiptment to be worth about $18,000.

    As far as the accounts go, $5000 a month seems low for 55 customers, if my calculations are right this works out to an average of about $22.00/cut. If thats the case, they better be real small and close together. I might be willing to offer 10K max for the accounts.

    As far as the snow business goes, I would say those aren't worth a whole lot, a couple grand maybe, tops.

    Good luck!
  7. TPendagast

    TPendagast LawnSite Fanatic
    Messages: 11,562

    First off never never never pay for accounts. How can you be sure any of them will stay with you long enough to pay off what they cost you?
    Also how do you know this guy hasnt handed out his list to 3 other people?

    If he went out of business tomorrow they would have to go somewhere for service, right? Chances are youd get some of the customers anyway.

    truck and equipment maybe $15k.

    Work out a deal with him where you pay him sales commission on his accounts. The more you keep forthe longer time the better it is for him because he will get more out of it.
    But if it costs you $28 for a $22 lawn why do it?
    ask to see his books, what is his Net profit with these accounts?
    Chances are the reason why hes selling is he can make more money being a door greater at walmart than off these lawns.
    I sold my business in CT. Never got paid a single dollar for any accounts nor would I have expected to.
    Just sold the gear I didnt want to move across country.
    30% of the resi customers I didnt care a tick about and just told them to find someone else. The other customers I gave referrals to freinds.

    Commercial accounts I set up with some of my equipment (50% of them went in house when I closed my doors because no one else could do the jobs) and the other 50% were picked up in two weeks by a coupe of other guys.

    Becuase there is no proof lawn accounts will make you money or stay with you. I say (any many other professionals also say the same thing) account lists are worth very little, to nothing.

    Keep on mind I used to work for TRuGreen, and in the late 1990s and early 2000s when they were buying up companies, they never paid for a single lawn maintenance contract (although most owners did get paid a year or two of what their salary had been)
  8. dutchman

    dutchman LawnSite Member
    from CT
    Messages: 106

    Some body around here is selling his company and I called him he didn't call back yet. But why should I buy some body businnes without being sue to get his customers
  9. phlandscaping

    phlandscaping LawnSite Member
    Messages: 92

    haha, just thought of something that would be extremely sh%tty. I wonder if anyone has ever followed somebody's truck around when they're about to go out of the business and make notes of the accounts (possibly contact customers giving them a heads up). I would never do this, but has anybody heard of this?
  10. SLCINC

    SLCINC LawnSite Member
    Messages: 110

    Thanks, thats about what I was thinking

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