Landscaping Business Interviews Dothan AL

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

Kelly Services
(334) 671-0047
3160 W Main St Ste 4
Dothan, AL
South Alabama Skills
(334) 793-6709
1950 Reeves St
Dothan, AL
Alabama State of
(334) 793-6709
Dothan, AL
Willstaff Worldwide
(334) 678-6263
460 W Main St Ste 3
Dothan, AL
Long's Human Resource Services
(251) 928-3422
22811 US Highway 98
Fairhope, AL
Respond Medical Staffing Llc
(205) 822-0404
3100 Lorna Rd Ste 106
Birmingham, AL
Alabama State Employment Service
(205) 254-1347
Birmingham, AL
Alabama State of
(334) 566-9030
1023 S Brundidge St
Troy, AL
Partners
(251) 675-6840
914 Saraland Blvd S
Saraland, AL
Tri Staffing
(256) 461-4813
Madison, AL

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

A Services Group LLC

(334) 393-2054
913 Rucker Blvd
Enterprise, AL


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