Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Just starting your lawn care or landscaping business? > Introduce Yourself

Introduce Yourself Welcome all new forum members. Please introduce yourself and tell us about you. Tell us about your company. How did you get started? How long have you been in business? What do you do for fun? Don't be shy, say hello! It's fun and educational to interact on the forum!

Buying a well established Business


Introduce Yourself

Welcome all new forum members. Please introduce yourself and tell us about you. Tell us about your company. How did you get started? How long have you been in business? What do you do for fun? Don't be shy, say hello! It's fun and educational to interact on the forum!
Reply
 
Thread Tools Search this Thread
  #1  
Old 01-24-2013, 08:21 AM
ClassicCrane84 ClassicCrane84 is offline
Junior Member
 
Join Date: Jan 2013
Posts: 2
Rep Power: 4
ClassicCrane84 is on a distinguished road
Default Buying a well established Business

Hello everyone, I'm new to the site and I need some input. I have been working for a Landscape design/build/maintenance/tree firm. We do all aspects of landscaping. The company has been in business for a long time, has a well established customer base and has had growing sales/profits for well over the past 10 years. My position at the company has evolved into everything but ownership of the company.

This year the owner has introduced the idea of me buying him out (he is nearing the retirement age). I am at the beginning stages of figuring out what the company is worth and how I am going to fund the buyout. I'm positive that he will work with me to get a payoff plan over the next 10 +/- years. So here are my questions and I appreciate any feedback. This is not the first time it has been mentioned but now it is getting serious.

1) How do I evaluate the business and what I should pay for it?

2) If he were to fund me could I pay him with profits of the company?? I know this could be interesting because he would still have majority ownership.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 01-24-2013, 07:36 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,970
Rep Power: 10
Steve has disabled reputation
Default

Lawn care business tipsLawn Care Business Book
First off, welcome to our forum. It's nice to have you here.

Quote:
1) How do I evaluate the business and what I should pay for it?
Have you figured out yet the total value of all the assets?

Next have you figured out yet the value of the customer base? Are they re-occurring customers? Are they on a contract?

Quote:
2) If he were to fund me could I pay him with profits of the company?? I know this could be interesting because he would still have majority ownership.
I would think, having him self finance it would be better for you. There is nothing worse than thinking you are getting a great deal when buying an existing business, only to have something happen to it shortly after due to unforeseen circumstances. Even though you are in the business running it, you just never know what is going on behind the curtains until it is you who owns it.

Also, you don't have to lay out a lot of cash and you don't need to get approval to finance purchasing the business. The owner will have an interest in keeping it going for a long time to come if they are self-financing the purchase.

Why is the owner getting out of it?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #3  
Old 01-28-2013, 06:49 AM
ClassicCrane84 ClassicCrane84 is offline
Junior Member
 
Join Date: Jan 2013
Posts: 2
Rep Power: 4
ClassicCrane84 is on a distinguished road
Default

Thanks for your response.

There are no signed contracts for the coming years, we send out renewals every spring (beginning of March) but we do get the same customers back almost every year. I would say there is a 10% swing between loosing existing customers as well as gaining new customers.

The owner is nearing retirement age so he wants to slow down a bit and open a consulting business for landscapers which he would be very good at.

I know what the assets are worth on the books but I am in the process of figuring out what they are worth on the market. Lots of equipment so it will take a lot of time.
Reply With Quote
  #4  
Old 01-28-2013, 12:38 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,970
Rep Power: 10
Steve has disabled reputation
Default

Well keep us posted as you go. The less money you have to spend out of pocket to make this transition, the better it is for you because you will still have that cash in case you need it for unforeseen circumstances that always seem to appear.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
how to appraise a established buisness dbiz Starting a lawn care business. 4 04-17-2012 04:47 PM
Buying an exsisting business LuckyClover Starting a lawn care business. 6 03-05-2012 03:43 PM
Looking at Buying an Established Lawn Care Business chriss Starting a lawn care business. 17 12-04-2009 03:40 PM
Buying someone elses business? Crazy3rdgen General Talk 13 05-18-2009 08:44 AM
Buying an existing business Clean Lawn General Talk 6 08-29-2007 12:22 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Business Overload
Chilehead
05-06-2016 09:27 PM
Today 08:46 PM
by Chilehead
13 643
Firefighter gone Lawn...
Firehouselawn@hotmail.com
03-10-2016 04:50 PM
Today 07:26 PM
by acrajchel
9 10,044
Exmark Turf Tracer
acrajchel
02-01-2014 11:34 AM
Today 07:23 PM
by acrajchel
5 2,083
Rubber mulch...
avetslawncare
06-24-2015 09:28 PM
Today 06:59 PM
by acrajchel
7 2,991
3 Applications or 5...
stansg1fresh
02-18-2013 12:02 PM
Today 06:48 PM
by acrajchel
2 1,350
Checmial Applications
acrajchel
Today 06:44 PM
Today 06:44 PM
by acrajchel
0 9
Hello Everyone
JohnsLawnCare
06-22-2016 11:14 AM
Today 06:28 PM
by acrajchel
5 100
Ybravo 25 mowers
SGL1
06-11-2016 09:52 AM
06-21-2016 03:44 PM
by acrajchel
5 247
Great Arborist Ladder
SGL1
06-04-2016 09:56 AM
06-17-2016 08:46 AM
by SGL1
10 332
Help a Brother Out -...
Hedgemaster
01-23-2012 04:19 PM
06-17-2016 08:28 AM
by SGL1
94 34,351
Best Push Mower You Have...
markty
05-14-2016 03:46 PM
06-17-2016 06:08 AM
by SGL1
20 771
anyone interested in a...
GoGreenerKS
06-16-2016 01:00 PM
06-17-2016 02:58 AM
by SC93
4 138
Prolin
rmccutchan
05-21-2016 04:53 PM
06-16-2016 05:28 PM
by acrajchel
3 295
Laying new grass, Sod...
WarriorLandscapingCAN
05-23-2016 10:07 AM
06-16-2016 05:27 PM
by acrajchel
2 286
Is it too late?
Cpadgett
05-28-2016 09:10 AM
06-16-2016 05:24 PM
by acrajchel
6 398
Upgraded to a new mower
Stevenor92
05-17-2016 08:17 PM
06-16-2016 05:22 PM
by acrajchel
9 502
How can I fix my...
WarriorLandscapingCAN
06-10-2016 07:47 PM
06-16-2016 05:19 PM
by acrajchel
2 194
Need a lil help
Cpadgett
06-05-2016 09:51 AM
06-16-2016 05:17 PM
by acrajchel
5 318
help with sole...
greenbuds
03-24-2016 12:21 PM
06-16-2016 05:01 PM
by acrajchel
4 9,712
New Member from...
tiptoppmanager
06-15-2016 07:39 AM
06-15-2016 03:18 PM
by SC93
2 134
Say Hello !!!
Steve
03-19-2007 11:18 AM
06-14-2016 08:16 AM
by poppyanne
1,252 437,500
Brand new fish pond
Flynn landscaping 2016
06-12-2016 09:53 AM
06-13-2016 11:21 AM
by Steve
1 120
Whats up??
Cpadgett
05-27-2016 10:57 AM
06-06-2016 08:46 PM
by Cpadgett
11 457
New Member from Texas
NathanR
06-02-2016 06:13 PM
06-03-2016 09:17 PM
by SC93
7 288
Edging Fad...
Tree geek
05-10-2016 11:29 PM
06-03-2016 07:02 PM
by SGL1
3 469
To mow weekly or Biweekly
WarriorLandscapingCAN
05-11-2016 04:09 PM
06-03-2016 06:42 PM
by SGL1
11 723
Your Time Lawn Care
yourtimelawncare
05-31-2016 01:12 PM
06-02-2016 10:11 PM
by SC93
2 263
Hello from Alabama
pruzilla
05-25-2016 01:20 PM
05-26-2016 08:14 AM
by pruzilla
2 253
» Popular Tags
become an entrepreneur best mower be your own boss break business education business help business management contractor hacks deck lift dethatcher edging entrepreneur entrepreneur education estimates fuel problems fuel pump half moon blade hydro jjandm lawncare l.t.rich landscape landscape design landscaping landscaping design company landscaping richmond va landscping lawncare lawn mowing lawnservice lowering grade marketing mulch new business planting plowing raising grade residential lawn care richmond va richmond virginia lawn care roundup safety scag snowblower snow plowing snow shovel solo solo backpack sprayer sprayer start a business start a lawn care business start business start up swzt toro timecutter tree tree pics tree service video walk behind what to charge work from home z-max z-spray
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 09:35 PM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 09:35 PM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy