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thinking about merging with another lawn care service

Discussion in 'Business Operations' started by greenngrow, May 8, 2001.

  1. greenngrow

    greenngrow LawnSite Senior Member
    Messages: 403


    I am needing your advise and experience. I have been playing with the idea of going full time with the lawn care job. I have been growing the business to where I will gross more in a 1 month and a half then I did all last year. (last year was about 30,000 gross). I also need to get your thoughts and guideance about a decision about merging with another sole owned lawn care service. I am mainly into spraying and landscaping. He is into mowing and landscaping. We are about 40 miles apart and there are four gorwing small towns between us. In our area the growth of housing would make your head spin.

    The other guy has been fulltime for one year and is doing great.

    I have been doing this parttime for about 6 years and it is growing so fast that I have two full time guys at the present and might need one more.
    I know that some of you guys have done this in the past and we both would really like to hear from all that read this post.
    The guy is also a member of lawnsite. We both would like your sincere opinions.

  2. 65hoss

    65hoss LawnSite Fanatic
    Messages: 6,360


    Why not work out some sort of agreement. Maybe like an alliance. You then can work together on things, pass each other work, but still be separte. That way you make what you earn and he makes what he earns. This way you don't split even if one person isn't pulling his own weight.
  3. HOMER

    HOMER LawnSite Gold Member
    Messages: 3,183

    I would suggest "joint ventures" more so than a partnership. If you team up on projects and split the money then yours is yours and his is his. 1099 one another at the end of the year to keep your taxes and income in order. It could be a partnership or merger without all the legal hassles. If one decided to part then no harm no foul............and no tax problems.

    I've been there so I speak with experience.:mad:
  4. joshua

    joshua LawnSite Bronze Member
    Messages: 1,226

    i'm with homer and hoss on this on, you don't want to merge with another company if your doing as good as you say, you can find someone to take care of all your cutting and still do all your spraying and landscaping, the bigger landscaping companies do it around here. keep expanding on your own, but make friends with the guy and do joint ventures if some projects are to big for your company or his.
  5. JimLewis

    JimLewis LawnSite Fanatic
    Messages: 6,872

    I agree with all of the above. Partnerships almost always end in regret. And they are almost always a bad idea.

    On the other hand, joint ventures can be very good. I have had my share of joint ventures over the years. We still do regular work with two other landscape companies in this area. It is mutually beneficial. And there will be limits to what you want to do that he can fill in and things that he won't want to do that you will. It may last, it may not. But as long as you maintain seperate business entities you'll be able to seperate relatively painlessly when and if the time comes.


    6 years and you haven't taken the dive yet? Man, you need to go full time. Sorry to be blunt. But I'd just jump in. I guess it depends on your climate. Here we can keep working a little all winter so it's not as bad. But I'd seriously consider dedicated all of your efforts to your business. It's difficult for men to dedicate mental energy into two seperate things. And I think you'll find that once you take the plunge you have enough time to figure out how to make enough money.

    Read the book "You Can't Steal Second With Your Foot On First." It's all about taking the plunge into self employment and owning a business.
  6. I'm with Josh

    I just got burned bad for $65,000 doing the merger with a nother co.
    I did the contract and agreement 1099 and other fun stuff
    when my money ran out he was gone

    thank godfather i made freinds with other lawn companys and had freinds in the biz or i would have to go to #$%$^& bakruptsy court
    stay on your own make friend and barrow equipment to each other:mad:
  7. forgot to tell you

    you should just subcontract to each other in case you want to mow
    you would have the account if you do it right you would make some on it and not do any work if you want to expand you would be able to
    subcontact is a way to expand or get things done you dont do
    by the way I think there could be more money in scaping than mowing
    with less headaches:D
  8. greenngrow

    greenngrow LawnSite Senior Member
    Messages: 403

    Thanks guys for all your input. I agree that a swapping out deal would be better than merging into one. Like one said, barrowing would be a great idea and keep money down. About the full time deal. It is going to happen very soon. Thanks again for all your input.


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