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Possible customer base purchase, determining valuation of annual accounts

Discussion in 'Business Operations' started by Ijustwantausername, May 13, 2019.

  1. jonthepain

    jonthepain LawnSite Bronze Member
    Male, from Raleigh
    Messages: 1,219

    When I purchased Arborgold they asserted that they will not under any circumstances sell their database info, and they also intimated that Yardbook does.
  2. TPendagast

    TPendagast LawnSite Fanatic
    Messages: 17,515

    It’s a demonstration of how to find the average profit with information given
    hort101 likes this.
  3. Green Mentorship

    Green Mentorship LawnSite Senior Member
    from Heaven
    Messages: 321

    Ignore everyone else and just do this.
    Mark Oomkes likes this.
  4. Green Mentorship

    Green Mentorship LawnSite Senior Member
    from Heaven
    Messages: 321

    Experience speaking you're going to have better retention transitioning mid season than if it was done during a service dormancy period.
    EricC likes this.
  5. TPendagast

    TPendagast LawnSite Fanatic
    Messages: 17,515

    Advertising is cost of doing business
    That’s covered in overhead and has already been spent.
  6. OP

    Ijustwantausername LawnSite Silver Member
    Messages: 2,058

    I like the cost averaging but he wants to 100% sell out now and be done with it so he can pay down some debt that he owes on the company before moving to Fl. I need to come up with an offer to completely acquire the accounts.
  7. EricC

    EricC LawnSite Senior Member
    Messages: 742

    Don't be in a hurry to buy someone's debts. It's not worth it, unless it's for what it's worth, which is not much. Why does he want to sell out now? the answer is usually because the cash flow doesn't support the debt and a lifestyle and he's hoping someone else will take on debt so they can work to pay it rather than work to pay themselves. Don't be that person.
    Jeff@diyokc and Mark Oomkes like this.
  8. BigJlittleC

    BigJlittleC LawnSite Fanatic
    from Chicago
    Messages: 8,128

    How much are you willing to pay for these names? How much does it cost you to gain a client. Which one is cheaper?
    sjessen likes this.
  9. Mac-s Lawn & Snow

    Mac-s Lawn & Snow LawnSite Senior Member
    Messages: 535

    I would offer him $600.00 for every customer that signs a contract with you and leads to $1000.00 in revenue. If he has signed contracts and sells his company those contracts are null and void. and there is no guarantee they will sign with you.
    Jeff@diyokc likes this.
  10. Oxmow

    Oxmow LawnSite Bronze Member
    Messages: 1,089

    Nice job Ted! I concur.

    However the more he explains, it sounds like he's about to commit bankruptcy and is looking to have some cash afterwords that can't be accounted for in the prebankruptcy discovery.
    Jeff@diyokc likes this.

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