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Wanting to buy Biz need advice Please?

Discussion in 'Starting a Lawn Care Business' started by Vanessa31, May 10, 2005.

  1. Vanessa31

    Vanessa31 LawnSite Member
    Messages: 16

    Hello i wanted to ask a question

    There is a guy selling a lawn service company for $20,000
    me and my husband seem to think its a good deal, since we have seen some lawn service companies for sale and they are pretty expensive, most are over $60,000-$75,000, the expensive ones have more accounts so thats pretty much the only difference, and figure if we buy this business we can advertise and add more accounts, once my husband gets experience doing this kind of work,

    ok here are the details of this one, i just need some advice on what you guys think.

    Business have over 40 accounts, makes $3200.00 a month

    all the equipment is still under warranty for 2 more years. includes

    1 enclosed trailer
    1 scott cub tractor which is still under warranty for 2 years
    1 blower
    1 backpack blower
    trimmers.edgers and alot of misc tools, ladders, etc..

    do you guys think this is a good deal, I know starting our own business woudl be alot cheaper but of course this one already has accounts plus this guy is willing to train my husband, he also does landscaping and he says he will show him where he buys the plants and how to do the work, what do you guys think?
  2. Vanessa31

    Vanessa31 LawnSite Member
    Messages: 16

    By the way,the person selling this biz says he is moving thats the reason he is selling it,we are wondering what we should look out for? also should we use an attorney for the purchase of the biz,or are there sale contracts that you guys use? this is our first business and we just want to make sure the guy doesnt take advantage of us, any advice on that?
  3. daveintoledo

    daveintoledo LawnSite Silver Member
    Messages: 2,587

    need a lawyer, and thats not much of a mower for a business, its not even commercial grade right?????

    thats alot of money for little equipment... about a 1000 dollar lawn tractor 15 hundred for the trailor 1000 for blowers and trimmers, are they commercial grade??so 16 thoudand for 40 accounts........ and about 4 in equipment
  4. Tider6972

    Tider6972 LawnSite Senior Member
    from Alabama
    Messages: 649

    NO, NO, NO !!

    Mowing accounts are worth 4 - 6 weeks proceeds, *IF you can retain them ! *

    Are these accounts under a contract? If so, pay him in three payments, but only * AFTER * you have met the clients AND cut for them AND you and they 'get along'!

    The enclosed trailer will have value, based on it's (1)size - smaller than a 6x12 is virtually useless, an enclosed should be at least 7x14 , and (2) condition .

    His other equipment is worthless for the commercial lawn care business.

    When business brokers or real estate agents get involved in the valuation and/or sale of lawn business, the owners/sellers are led to believe their businesses are worth far, far more than they are in reality.

    Caveat emptor
  5. Vanessa31

    Vanessa31 LawnSite Member
    Messages: 16

    Hello guys and thanks for your response
    i will get a more thorough list of the equipment he has, he says his trailer cost him over 6k? humm not sure but i will ask him for receipts etc.. he is not listed witha realtor, i did see a similar one with teh same number of ac listed with a realtor for $44.000, so I thought this was a good deal, but i guess not, anyway how much do you gusy think I shoudl offer him
  6. MMLawn

    MMLawn LawnSite Gold Member
    Messages: 3,569

    Everyone has already told you....NOTA! He has NOTHING to sale. Only a hnadful of accounts that are probably not even on contract and even if they are are probably not transferable and 90% of the time they don't stay with you if they aren't under contract, esp for a newly started LCO. As to the Equipment he has nothing but cheap Homeowner stuff and even if he did pay $4K for the trailer it isn't worth that used and like was posted above it is virtually useless unless it is at least 7'X14'.

    This guy thinks he has found a patsy that doesn't know the business and is tring to rip you....WALK.....NO, RUN from this "deal".
  7. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Messages: 4,205

    It's worth about $8,000 at BEST..............
    I wouldn't bother with the equipment as the "tractor" is not worth buying.........The trailer, depends on size etc..........
    The accounts, as has been mentioned, 1-1.5 times monthly gross..........If that's $3200 per month GROSS then this is not worthy of a second glance, they are hardly "quality" accounts
    in my opinion, If the $3200 is net then it's a bit different........
    Bottom line..........Stay away from this character, he's trying to buffalo someone into giving away their money.........
  8. gwwilson

    gwwilson LawnSite Member
    Messages: 89

    $2,500 for equipment
    $3,200 for accounts.....................that's ALL FOLKS.............

    $20,000 this guys an idiot period...............................

    payup payup payup :cry: :cry: :cry: :waving: :waving: :waving:
  9. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Messages: 4,205

    If he finds someone to pay $20,000 he's a well off idiot though.................... :waving:
  10. Drew Gemma

    Drew Gemma LawnSite Bronze Member
    Messages: 1,508

    pay a commision on th eaccounts tell him you'll give him half of the first 2 months only on those that stay and pay then you lose no money. that mower is a piece of crap. get an attorney a good one. make him help you with the transition. search my post as i have expanded through buyu outs before with sucess but it is a lot of work.

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