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price of buying accounts

Discussion in 'Business Operations' started by Bingham Brothers, Sep 23, 2007.

  1. Bingham Brothers

    Bingham Brothers LawnSite Member
    Messages: 66

    Is there a standard price to pay for residental accounts. I know that there are variables, but would like to get a starting point.
  2. J Hisch

    J Hisch LawnSite Senior Member
    Messages: 952

    what ever you are willing to pay, and whatever the seller is willing to sell for. Too many landscape companies sell to cheaply......
  3. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Messages: 1,916

    I have bought 4 companies in the last 7 years. 3 of them were for 1 months worth of each accounts contract price. 1/4 price for accounts that were not on contract.

    The other was a flat fee of lets say $25,000 and they continued to bill the accounts under their name for 6 months taking 50% of income off to pay towards the 25K with no mony down and 2% monthly billing fee charged to us to pay for their secretaries time. After the 6 months they were ours to bill under our name and collect complete funds. Worked out great.....we did see some down sides to this one being you have to keep a really personal relationship with them even if they are a dick....as they are in control for that short period of time of your money.
  4. J Hisch

    J Hisch LawnSite Senior Member
    Messages: 952

    at those price I would buy accounts all day long....... 1 months revenue for a account, another landscaper sold out to cheaply....
  5. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Messages: 1,916

    In my area (charlotte, nc ) its not that easy to find companies that are selling off accounts that are worth much.

    And if they are selling its usually 300K+ asking prices. So the good buys are hard to come by. Naturally when I see a mid sized or even a small company for sale I wonder why? something has to be going bad behind the scenes.

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