Purchasing a Lawn Care Company

Discussion in 'Starting a Lawn Care Business' started by usudno, Aug 29, 2008.

  1. usudno

    usudno LawnSite Member
    Messages: 25

    A little background on the company first.

    Owned by my cousin for 6 years
    Cuts approximatly 15 yards/ week
    Three Commercial properties totaling ~1200/ month
    No contracts signed with any customers
    All equipment is less than 1 year old

    Equipment includes
    60" Hustler Super Z w/ kohler engine
    Dr. Trimmer Mower
    WB Mower (not sure of brand)
    Shindawa 4 stroke trimmer
    Shindawa 2 stroke trimmer
    Edger (once again not sure of brand)
    Sthil Backpack blower x 2

    Now that you have some idea of what i'm planning on purchasing here are my plans.

    Have him get @ least the 3 commercial sites to sign 6 month or 1 year contracts.
    I plan on cutting in afternoons between 3-7p.m and on weekends with one helper.
    I already have a trailer and truck

    Now he wants to sell it to me for a flat 17K.
    The way i look at it for 17K i can pay it out in probably 2-3 years then start turning a true profit.

    What do you guys think?
  2. RLLServicesCT

    RLLServicesCT LawnSite Member
    from CT
    Messages: 225

    Find out the brand of the walk behind and you should also know if it is belt driven or hydro. (That can make a big difference.) Also find out the models of the blowers and trimmers. Stihl BR600 is about $500 new so if its a lower number model it is worth less. Also figure that when he passes the 15 accounts over to you, you may find that some customers may reject someone they dont know, or they have had someone else, related family etc....many reasons for them not to accept your new ownership. Take that into account.... FIGURE you prices which means that depending on your location figure out how many mowings you will do on average inclding drought each year. you should be able to pay for everything in about ONE season. Maybe take on a few more accounts to turn a quicker profit? Though he is your cousin maybe you should offer him around 15 grand cash or bank check. (Though thats a guess because I dont know all the specs of the equipment your buying and the amount he gest from his customers.) Overall that is not a bad deal, but it could be better.
  3. KrayzKajun

    KrayzKajun LawnSite Fanatic
    Messages: 10,737

    thts alot to pay for just maybe 10 accounts(plan on atleast 5 dropping you)
  4. B_gerrits

    B_gerrits LawnSite Senior Member
    Messages: 297

    Here's my 02 cents worth. IMO the accounts aren't worth that much no contracts no telling how many will go with you. You need to find list price for all equip. Have you ever done this kinda work would be a shame to invest this kinda money and find out you hate the work. What is the market like, are there a ton of illegals driving around with mowers. How are you at keeping records, sales, and doing invoices, there is a lot more to doing this than just the work. Just a few things to ponder.
  5. Green Finger

    Green Finger LawnSite Senior Member
    Messages: 839

    Too much for the company. You are basically paying for the equipment. The accounts are not under contract. Some may go and leave you will equipment and a bill for 17k.

    Get a walk behind used and an old pick up. Hustle hard and you'll have 20+accounts. in the spring.

    No debt all profit is yours. then step up and purchase more equipment as needed as you grow.

    17k:cry: too much.
  6. tradeyouraccounts

    tradeyouraccounts Banned
    Messages: 343

    If the hand over process and communication to the customers is done correctly the lose rate on customers can be minimal after the change of ownership. Always best to have a guarantee period and hold some money back till this has been completed.

    Good luck in your endeavors
  7. TXNSLighting

    TXNSLighting LawnSite Fanatic
    from DFW, TX
    Messages: 6,464

    No deal. Yards arent worth much without contracts. Id offer him the value of the equipment, and what each of those yards earn per month. That would be a pretty good deal.
  8. punt66

    punt66 LawnSite Fanatic
    Messages: 8,536

    Another non light thread? Buy a mower and start your own. Not worth anyway near that money. Its only worth the cost of his equipment. Not enough income to sell at any value.

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