interested in buying a company

Discussion in 'Starting a Lawn Care Business' started by xfacter44, Feb 4, 2009.

  1. xfacter44

    xfacter44 LawnSite Member
    Messages: 3

    alright , so i emailed this guy on his lawnservice he's selling , i dont think its really worth , what hes asking for it .. what do u guys think?

    The company was formed in 1999 and is in active/good standing with the State of Michigan. The business services about 100 residential lawn care customers (these also include snow accounts), as well as about 6 commercial snow customers.
    We are a reputable company that prides ourselves on performing quality work at an affordable price to guarantee the satisfaction of our customers. Many of our customers have remained with us during our10 years of business.

    Asking Price: $40,000 O/B/O

    Included in the Purchase:
    1. The business name and full rights to the business
    2. 12' x 6' open lawn trailer w/mower rack, tool box & grass whip rack
    3. All commercial snow accounts
    4. All residential lawn accounts
    5. All residential snow accounts
    6. 2 Western snow plows
    7. 2 Gravely walk behind mowers (48" and 32")
    8. 2 backpack blowers
    9. 2 grass whips
    10. 1 stick edger
    11. Tailgate salt spreader
    12. Walk-behind salt spreader
    13. Calcium Chloride Spreader (325 gallon)
    14. Backpack Sprayer (for weed killer or calcium chloride)
    15. And many small yard tools :cool2:
  2. dennys-lawn

    dennys-lawn LawnSite Member
    Messages: 135

    Why is he selling?
  3. triadpm

    triadpm LawnSite Member
    from md
    Messages: 79

    The first thing I would do is get my CPA to look over his books, then if still interested haggle over the price. Just my opinion.
  4. OnSite Landscaping

    OnSite Landscaping LawnSite Member
    Messages: 20

    So you are basically paying $20,000- $25,000 for 100 accounts, guessing this equipment is worth $15,000 to $20,000, The question that I would think about is how much is each account bringing in? If they are averaging $35 a week and where all weekly accounts thats a Gross of $14,000 per month which in three months would be paid off. If they are bi weekly accounts thats $7,000 per month, so it would take you six months to pay it off. Now how much will it cost you to run the business for three
    to six months?
    -Equipment Maintainance
    -Vehicle Insurance
    -General Liability Insurance
    -Workmans Comp Insurance
    -Equipment Replacement?
    -Misc Cost
    -Have cash on hand for any emergency or pre-purchase of materials

    Add all of that together and that is your true cost and then some.

    I know that none of these figures are precise or maybe not even close but just look at it from this perspective, I hope this helps... good luck
  5. otis

    otis LawnSite Member
    Messages: 21

    dont forget a no compete clause

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