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 online now
Administrator
 
Join Date: May 2003
Posts: 38,008
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 online now
Administrator
 
Join Date: May 2003
Posts: 38,008
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
Z246 Deck change question
JohnsLawnCare
Today 01:47 PM
Today 06:38 PM
by Steve
1 20
DIY Sprayer
acrajchel
Today 09:13 AM
Today 06:36 PM
by Steve
1 23
Hello Everyone
JohnsLawnCare
06-22-2016 11:14 AM
Today 06:20 PM
by Steve
15 541
How much to charge for...
jymie
03-31-2013 05:59 PM
Today 06:18 PM
by Steve
23 5,935
Hi from Long Island NY
Lori22
07-18-2016 02:01 PM
Today 06:11 PM
by Steve
10 184
Hi everyone!
greenwavemedia
Today 03:22 PM
Today 03:22 PM
by greenwavemedia
0 12
New Site Hows it look
Infinitelawn
03-16-2015 10:32 AM
Today 03:06 PM
by greenwavemedia
5 10,388
Needing a website built
burtle
06-17-2015 09:02 AM
Today 02:58 PM
by greenwavemedia
15 18,301
Looking for new host
Just for Cuts
11-26-2015 06:58 AM
Today 02:49 PM
by greenwavemedia
9 1,464
New Business Owner
danesdanglas87
07-20-2016 12:31 PM
07-21-2016 05:04 PM
by Steve
2 98
Hi! I'm Tony from Tampa
Lawnline
07-12-2016 06:47 PM
07-19-2016 04:45 PM
by Steve
5 616
Question about...
Bradcook21
07-18-2016 05:22 PM
07-19-2016 04:38 PM
by Steve
2 114
Hello from Watertown New...
lawnmanrick81
07-19-2016 03:57 PM
07-19-2016 04:11 PM
by Steve
1 63
Gutter Cleaning Tool
DanielThomas
07-18-2016 08:23 AM
07-18-2016 04:36 PM
by Steve
1 92
Starting on a lawn care...
Coco3465
07-16-2016 11:26 AM
07-17-2016 09:20 AM
by Steve
1 119
Aspiring Company Owner
TJ136
07-12-2016 05:12 AM
07-15-2016 02:52 PM
by SC93
6 219
Hi Everyone
JavelinaLawn
07-10-2016 07:29 PM
07-13-2016 02:01 PM
by Chilehead
5 754
Review of our lawn care...
Lawnline
07-12-2016 06:40 PM
07-12-2016 06:40 PM
by Lawnline
0 391
Custom Canopies
JohnsLawnCare
07-12-2016 08:38 AM
07-12-2016 04:14 PM
by Steve
1 265
Spot checked by...
Just for Cuts
06-28-2016 02:34 PM
07-11-2016 03:53 PM
by Steve
4 286
John Deere JS40 issues
Mr. Mow
07-06-2016 01:28 PM
07-11-2016 03:52 PM
by Steve
3 210
Start My Own Business?
mowandblow1980
01-12-2016 07:43 PM
07-11-2016 11:18 AM
by DanielThomas
15 1,760
Rubber mulch...
avetslawncare
06-24-2015 09:28 PM
07-11-2016 09:11 AM
by Chilehead
9 3,296
Firefighter gone Lawn...
Firehouselawn@hotmail.com
03-10-2016 04:50 PM
07-07-2016 05:07 PM
by Steve
11 10,537
I need some business...
Firehouselawn@hotmail.com
07-06-2016 05:42 AM
07-07-2016 05:00 PM
by Steve
4 253
Business Overload
Chilehead
05-06-2016 09:27 PM
07-07-2016 04:53 PM
by Steve
24 1,260
Chemical Applications
acrajchel
06-24-2016 06:44 PM
07-05-2016 12:38 PM
by Chilehead
6 369
Is it too late?
Cpadgett
05-28-2016 09:10 AM
07-05-2016 11:54 AM
by Steve
14 872
3 Applications or 5...
stansg1fresh
02-18-2013 12:02 PM
07-04-2016 09:19 AM
by LawnPerfection
9 1,702
Best Push Mower You Have...
markty
05-14-2016 03:46 PM
07-02-2016 03:41 AM
by markty
27 1,929
Great Arborist Ladder
SGL1
06-04-2016 09:56 AM
06-28-2016 08:04 PM
by mowandblow1980
11 691
Newbie
Jhoell
06-25-2016 03:28 AM
06-28-2016 02:11 PM
by Chilehead
2 266
Say Hello !!!
Steve
03-19-2007 11:18 AM
06-28-2016 11:02 AM
by Brownieboy
1,253 440,281
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 08:54 PM.


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

All times are GMT -5. The time now is 08:54 PM.

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