Is this business worth buying?

Discussion in 'Lawn Mowing' started by twascher, Jun 20, 2010.

  1. twascher

    twascher LawnSite Member
    Messages: 6

    Lawn service for sale.. Truck, trailer, 2 - 54inch exmark mowers all shindaiwa hand tools and 200 accounts.. all accounts are year round, zero per cuts! all accounts are in the same zip code 95% of accounts are in the same sub division. A true mow and go service, leaving all the side work for extra billing ( and there is tons of it ) crew willing to stay for an easy transaction!! will walk away for 75k make more then your money back in the first year:)
  2. CowboysLawnCare

    CowboysLawnCare LawnSite Member
    Messages: 133

    Almost sounds too good to be true with 200 accounts. Are the customers under contract or not. That would be a big deciding factor for me.
  3. twascher

    twascher LawnSite Member
    Messages: 6

    No the customers are not under contract but I did get the seller to agree to going around to each customer prior to finalizing the sale so we could talk with them face to face and explain the company is being bought by another person and getting a commitment on staying with me as long as the work is done just as it has for the past 7 years.
  4. Field King

    Field King LawnSite Senior Member
    Messages: 266

    Get a "NO COMPETE FOR 5 YEAR CLAUSE" in writing from seller, and do make the rounds with him to speak with customers, if you retain 90% of the existing customers you are doing good, negotiate better price for each one that cancels or gives a maybe! Also really focus on the "extra" work on those accounts to make them "value added" like tree/shrub trimming etc.! Check Title to all trucks, equipment, maintenence records, look under decks etc, to help with negotiating a lower price!
  5. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    If you have to ask, the answer is no.
  6. Raymond S.

    Raymond S. LawnSite Senior Member
    Messages: 996

    what is the truck, mileage, year, etc. Trailer?, enclosed, beat to death, etc. Hours on the mowers? What is the yearly gross? How big is the crew? What are the wages he pays? What kind of margin has he been operating on in recent years? What's his plan now, retiring or tired of losing money? Lots more questions to answer before you can know if it's worth it or not. With 200 accts. it seems as though you could turn a profit fairly quick but too many unknowns w/ what you posted.
  7. twascher

    twascher LawnSite Member
    Messages: 6

    Thanks for replying Raymond here is some additional info.

    The truck is a 93 with 2 years on the rebuilt engine. He invoices 9100.00 a month with weekly mowing, he invoices an additional 1500-2000 in extra work. The enclosed trailer looks brand new and all the inside wood is in great condition with no leaks. Cost per month is 5500.00 that includes employee payroll. He recently started a pest control company running two trucks and says he makes more money per visit but faster turn over of customers so he wants to focus on pest control and not have to worry about the day to day operations of the lawn service. His crew consist of 2 full time guys and today he took me down one of his routes and in one subdivision that has 2 streets he has 40 customers so he keeps his drive time minimal. Also he has had some customers for 13 years and his driver has been with him 7 years.
  8. Field King

    Field King LawnSite Senior Member
    Messages: 266

    Dig deeper, his return seems real good, why is he walking? Pest control? Really? Have u walked the route?
  9. twascher

    twascher LawnSite Member
    Messages: 6

    I havent walked the route however I am going to meet him Tuesday morning and we are going to spend the day talking with each customer so I can make sure they are satisfied with the work the has been done in the past and talk to them about the company being under new ownership if I decide to buy it.
  10. maintenanceman

    maintenanceman LawnSite Member
    Messages: 34

    200 customers and billing $9100 / month for mowing = $45.50 per customer / month. Could be small properties, but it doesn't sound like enough to me. I bet he's loosing money or he would not be selling and would not be driving a 1993 truck. Be careful.

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