need help

[evergreen lawncare]

how do you go about buying a lawn service i guy where i live has one for sale he wants 12000 for it got 45 yards ,trailer, 2 push one ride behind mower, and 2 backpack blowers i told him that was to high he ask me to come up with a number he's moveing out of state and has to sale what should i do thanks

[jagmagic]

actually if he has 45 accounts, they would probly ave at least $30 ea. so that would be $2,700.00/mo. after 3 months if you added no sales of your own to it the business would pay for itself. Normally when a business is sold the price tag is about a 3 year sales avg. for the business, in other words they sell it for what it would make in a 3 year time period. With this deal being able to pay itself off in just 3 months w/o any add'l selling on your part is an excellent dean in my opinion, I would probly want at least $20,000 for it if I was selling it, assuming all the equip is in good condition...

[jimslawnservice1]

12000 isn't too much for a successful business, you need to research if these are contracts or just "accounts" also ask to review a copy of his taxes (if he files) also is it commercial equipment or just homeowner grade equip?. If he is willing to take you around and introduce you to all of the customers and advise them of the situation. Do you have previous experience in lawn-care and capital to keep it going (unless you just happen to have the cash laying around) just some thoughts. Also check into addtional costs, do you already have a truck, Insurance, storage, ect.
jim

[evergreen lawncare]

12000 isn't too much for a successful business, you need to research if these are contracts or just "accounts" also ask to review a copy of his taxes (if he files) also is it commercial equipment or just homeowner grade equip?. If he is willing to take you around and introduce you to all of the customers and advise them of the situation. Do you have previous experience in lawn-care and capital to keep it going (unless you just happen to have the cash laying around) just some thoughts. Also check into addtional costs, do you already have a truck, Insurance, storage, ect.
jim
thanks for the reply ok he just has accounts ans yes he has all the commercail equipment i got two trucks and storage and a new lawn trailer i got on a deal lastyear its just been sitting around and the money its there but see i work a union pacific so ill have to hire a guy to do it i seen some of he;s taxes and he makes like 5 g a month on 45 accounts is that go ? thanks for relpying