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: 3
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: 37,454
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: 3
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: 37,454
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
Country Life Lawn Care
darleneh
Yesterday 11:24 AM
Today 01:25 PM
by Steve
3 1,686
Ready to learn and get...
Koley Lawn & Landscape
06-28-2015 05:16 AM
Today 12:16 PM
by Steve
5 1,729
Dogs
Mr. Mow
Yesterday 02:37 PM
Today 11:31 AM
by Steve
3 1,684
Rubber mulch...
avetslawncare
06-24-2015 09:28 PM
Yesterday 09:23 PM
by Chilehead
6 1,783
Just about mid year, how...
GreenWorx
06-24-2015 07:05 PM
Yesterday 03:26 PM
by GreenWorx
4 1,802
I dont know what to do...
Bradcook21
06-21-2015 08:49 AM
Yesterday 02:30 PM
by Mr. Mow
11 2,014
Marketing ideas
xandrew245x
04-29-2014 06:35 AM
06-25-2015 07:11 PM
by GreenWorx
34 5,619
Never ending sod jobs
avetslawncare
06-05-2015 09:46 PM
06-25-2015 11:42 AM
by Steve
11 2,248
Weed and Feed Service...
mike94740
06-23-2015 05:50 PM
06-24-2015 09:56 PM
by avetslawncare
2 1,743
Trimming hedges / trees,...
Hard-Body lawn & garden
06-23-2015 07:08 PM
06-24-2015 09:59 AM
by Steve
1 1,746
Hi Everyone from Arkansas
KellyMarie
06-04-2015 04:16 PM
06-23-2015 01:34 PM
by KellyMarie
4 2,024
how to make customers...
Bradcook21
05-27-2015 05:04 PM
06-23-2015 06:36 AM
by GreenWorx
7 2,243
problems with a customer...
LawnCareMan280
06-16-2015 10:26 PM
06-22-2015 11:11 AM
by Steve
6 2,016
Please review this FREE...
markty
06-21-2015 07:42 AM
06-22-2015 11:00 AM
by Steve
1 1,772
A good commercial bid...
burtle
06-20-2015 09:09 PM
06-22-2015 10:56 AM
by Steve
1 1,831
What would you do with...
holymoly
06-20-2015 06:48 PM
06-22-2015 10:48 AM
by Steve
1 1,769
New Member just joined...
vgoleco@hotmail.com
06-19-2015 03:49 PM
06-22-2015 10:42 AM
by Steve
2 1,809
Credit Cards - What's in...
Shark1611
06-16-2015 03:04 PM
06-21-2015 07:24 PM
by Chilehead
4 1,892
Blade usage
Wolf4dk
06-16-2015 12:18 AM
06-21-2015 05:35 PM
by kslawn
4 1,910
Hello, I am new to the...
adamslawnservices
06-17-2015 08:06 PM
06-19-2015 10:28 AM
by Steve
3 1,832
Is it too late to do...
markty
06-16-2015 05:28 PM
06-19-2015 10:22 AM
by Steve
4 1,902
First commercial bid
SGL1
06-12-2015 08:57 PM
06-18-2015 05:04 PM
by SGL1
9 2,262
Needing a website built
burtle
06-17-2015 09:02 AM
06-18-2015 11:02 AM
by Steve
7 1,977
I have been rude and...
biglee
06-15-2015 10:11 PM
06-18-2015 10:46 AM
by Steve
10 2,066
Start LIKING FACEBOOK...
rlclawncare123
02-26-2015 12:06 AM
06-17-2015 08:38 AM
by burtle
9 3,156
Customer keeps adding...
Mr. Mow
06-13-2015 06:22 AM
06-16-2015 10:23 AM
by Steve
11 2,116
Pass discounts onto...
burnell76
06-03-2015 06:33 PM
06-16-2015 10:02 AM
by burnell76
3 2,003
burned grass only where...
nhauto
06-15-2015 05:28 PM
06-16-2015 09:45 AM
by Steve
2 1,871
Half year mark review.
Steve
06-02-2015 11:24 AM
06-15-2015 01:04 PM
by Steve
18 2,582
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
06-15-2015 01:01 PM
by Steve
86 9,613
New Member
Bruce Fehr
06-05-2015 07:13 PM
06-15-2015 12:53 PM
by Steve
6 2,000
New to the business,...
CarefreeMowing
06-12-2015 02:36 PM
06-15-2015 12:50 PM
by Steve
1 1,883
Beginner Mistakes:...
Steve
01-31-2007 11:45 AM
06-13-2015 08:48 AM
by holymoly
45 11,947
New to the forum, new to...
CarefreeMowing
06-11-2015 12:35 PM
06-12-2015 10:44 AM
by Steve
2 1,807
problems with a customer
LawnCareMan280
05-19-2015 06:28 PM
06-11-2015 10:50 PM
by stallman419
8 2,350
Website Review
Outdoordesignsknox
06-08-2015 08:44 PM
06-11-2015 09:48 PM
by Just for Cuts
13 2,221
another newish job for me
holymoly
06-07-2015 08:34 AM
06-11-2015 10:05 AM
by Steve
8 2,022
Anyone need help? I have...
biglee
05-06-2015 12:22 PM
06-10-2015 01:45 PM
by holymoly
15 2,940
Hello from the GREAT...
gbfarmsllc
06-09-2015 11:10 AM
06-10-2015 01:29 PM
by Sprinkler Buddy
2 1,879
Hey guys and gals, I'm...
Joeyhall
06-03-2015 03:54 PM
06-08-2015 02:15 PM
by chris2500hd
8 2,117
Mowing Bermuda...
Mr. Mow
06-02-2015 12:45 PM
06-08-2015 12:45 PM
by Steve
12 2,277
Hey Guys
PrattLandscaping
06-07-2015 06:37 PM
06-08-2015 12:23 PM
by Steve
2 1,888
Share your stolen...
SGL1
05-27-2015 09:05 PM
06-08-2015 11:54 AM
by Steve
25 2,815
Hello there My name is...
zwalk1839
06-04-2015 11:10 PM
06-08-2015 11:52 AM
by Steve
4 2,003
Laid off oil field...
Mr. Mow
05-30-2015 09:03 AM
06-08-2015 06:20 AM
by Mr. Mow
4 2,109
How do you find one time...
Greg'slawnandlandscape
06-02-2015 09:57 PM
06-05-2015 09:49 PM
by avetslawncare
4 2,032
Show us your stripes
Just for Cuts
05-21-2015 03:07 PM
06-04-2015 05:24 PM
by ExtremeLawncareServices
6 2,335
Replacement Parts -...
nicholas-KC
08-16-2014 08:40 AM
06-04-2015 11:45 AM
by Steve
9 3,825
Say Hello !!!
Steve
03-19-2007 11:18 AM
06-04-2015 11:42 AM
by Steve
1,225 398,538
Hi I'm Theo I'm new
Tbatten
06-03-2015 09:38 AM
06-03-2015 11:12 AM
by Steve
2 1,936
» Popular Tags
aerocore apartment bid apartment complex apartment lawn care estimate applying bark billy goat brushcutter blowout bush collections contract help curb appeal services deliquentaccounts design ditches door hangers employee problems equipment rental facebook flyers foreman free advertising free lawn care google growing a lawn care business hills hiring how to husqvarna increase customers jobs landscape services landscaping landscaping training lawn aeration lawn care lawn care busines plan lawn mowing marketing more customers business mr dave mulch new business past due per hour charge plowing pricing profit on employee push versus ride scag secrets to landscaping sell the vision seo shell small engine repair snow plowing sq ft square foot steep lawns swzt trailer trailer mate pro tree trimmer rack web design website website design winterization wood www.greenturion.co.za
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 03:48 PM.


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

All times are GMT -5. The time now is 03:48 PM.

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