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Contracts for Sale

Discussion in 'Business Operations' started by LawnExpressions, Mar 21, 2005.

  1. LawnExpressions

    LawnExpressions LawnSite Member
    from SW Ohio
    Messages: 22

    I was just curious if anyone has ever purchased maintenance accounts from another LCO. This guy was trying to sell me a used ztr, trailer and 30 accounts for 25 grand. Obviously I declined, but I wanted to know what everyone else thinks 'cause I've heard just about every formula or calculation under the sun. Thanks
     
  2. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    Do a search on this subject and you will see every opinion on this subject under the sun too.
     
  3. Mike TMI

    Mike TMI LawnSite Member
    Messages: 89


    I have bought out 3 different companies. The first was a small operation and I approached him out cutting some lawns. It was mid-August and I asked him how many accounts he took care of. It was like 20 or so. I told him I would give him $2,000 the very next day and we would sign a contact and a non-compete letter. He jumped on it and I gave him the money the next day.

    The other 2 were a little tricky. 1 LCO wanted the price of each lawn X 5 visits. He had 80 residentials and 1 HOA. I ended up getting him down to 4 visits per house and he threw in the HOA. We obviously signed a contract...but now he works for me doing my fertilizer.

    The last one was the hardest...he wanted 4 visits...I offered 3 visits plus he sell me his equipment. He ended up taking the 3 and I bought one mower for $500.00

    So I have bought a few companies and interested in buying a few more....

    Anyone selling?
     
  4. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    You were fortunate...you would not get that lucky purchasing my company I can tell ya.
     
  5. Mike TMI

    Mike TMI LawnSite Member
    Messages: 89

    rodfather-
    Trust me...I walked away each time laughing about how lucky I got, except the one I bought that he came and worked for me. We actually have become pretty good friends.

    You ever bought a company in your area? What do they go for?

    Mike-
     
  6. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    Nope, got too many accounts now on my own Mike. ;)
     
  7. westwind

    westwind LawnSite Senior Member
    Messages: 444

    going rate for accounts up here seems to be 2 months of total revenue. Just sold my business. It worked out well, for me and the other LCO.
     

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