Landscaping Business Interviews Dearborn MI

You have the opportunity to purchase a landscaping business. How would you decide whether or not to buy it, and how much to pay for it? Read on and you'll know.

Local Companies

Global Vision Technology, Inc.
248-912-0240 Ext.15
41700 Gardenbrook Road, Suite 105
Novi, MI
CATS CO
248-816-2287
2100 W. Big Beaver Rd. Ste #210
Troy, MI
The Dako Group
(248)655-0100
2966 Industrial Row
Troy, MI
Select Personnel Services
(313) 565-9136
24500 Michigan Ave
Dearborn, MI
Etd Services
(313) 359-0270
835 Mason St
Dearborn, MI
Grn Dearborn
(313) 277-1107
19855 Outer Dr
Dearborn, MI
Express Personnel Service
(313) 846-6413
13365 Michigan Ave
Dearborn, MI
Mysplakecom
(313) 624-9092
15340 Michigan Ave
Dearborn, MI
Express Personnel Services
(313) 624-8741
13365 Michigan Ave
Dearborn, MI
Ssp Placement Services
(313) 624-9092
15340 Michigan Ave
Dearborn, MI

Provided By:

You have the opportunity to purchase a landscaping business. How would you decide whether or not to buy it, and how much to pay for it?

This question is a good candidate for the Five Cs. Determine:

Character

  • How would you evaluate the sincerity, honesty, and integrity of the owner of the business? Do others that they deal with (employees, suppliers, customers) value them as partners, or are there character issues?
  • Is there any legal action pending against the business?
  • Does the business have a positive employee culture? Does it engage in any charitable or environmental initiatives?

Capacity

  • Is the business turning away new customers due to lack of equipment/ employees?
  • Are the assets of the company (property, plant) strained or in a state of disrepair?

Capital

  • Is the landscaping business carrying any debt? What is its debt ratio?
  • What is the company's cash flow like over the last five years?
  • What is the company's new account history? How much business is new vs. repeat?

Collateral

  • Are any of the business' assets impaired in any way? Obsolete equipment, for instance?

Conditions

  • Describe the market space the business occupies. Is it a leader? Are there many players?
  • What defines dominance in this market? Cost? Economies of scale? Speed to market? Relationships with customers? Where does this business fall against the aforementioned metrics?
  • Is the market for landscaping saturated? Are there opportunities for expanding the current customer base?
  • What advertising and promotional activity has been done? How much does the business spend (as a percent of sales) on marketing its services?

Read article at Vault.com

Featured Local Company

Global Vision Technology, Inc.

248-912-0240 Ext.15
41700 Gardenbrook Road, Suite 105
Novi, MI


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