Maintenance business buyout price

Discussion in 'Business Operations' started by vernon lawn, Aug 18, 2006.

  1. vernon lawn

    vernon lawn LawnSite Member
    from NJ
    Messages: 18

    I looking into expanding my current company and have a oppotunity to buyout another companies maintenance schedule. My question is what would be the norm for a price to buy this out based on total gross? What percentage would this be based on ?
  2. J Hisch

    J Hisch LawnSite Senior Member
    Messages: 952

    what ever you are willing to pay. I have bought some maintenance companies for pennies on the dollar and other almost dollar for dollar. It just comes down to how much are you willing to risk. I would pay more if it is a well established company rather than just somebody mowing lawns. I would also pay more if employee's and equipment are coming with the deal. But to buy a few mowing accounts I wouldnt give much at all. More than likely this person if it is a person. He is just tired and want to quit, ignore his offer and hang some cash in his face and he will probably walk away.

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