Landscaping Business Interviews Fayetteville AR

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

Staffmark
479-756-2237
4275 S. Thompson
Springdale, AR
Pinnacle Corporate Staffing LLC
479.899.8989
5430 Pinnacle Point Dr.
Rogers, AR
Tec Staffing Services Inc
(479) 582-5525
1160 N College Ave
Fayetteville, AR
Ar Data Inc
(479) 695-2111
16 W Center St
Fayetteville, AR
Rs Staffing Services Inc
(479) 973-6509
1160 N College Ave Ste 2
Fayetteville, AR
Officeteam
(479) 521-5789
438 E Millsap Rd
Fayetteville, AR
Arkansas Workforce Centers At Fayetteville
(479) 521-5730
2143 W 6th St
Fayetteville, AR
Robert Half International
(479) 443-2900
Fayetteville, AR
Exxtra Help
(479) 521-7999
935 N College Ave
Fayetteville, AR
Accountemps
(479) 443-2900
438 E Millsap Rd
Fayetteville, AR

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

Staffmark

479-756-2237
4275 S. Thompson
Springdale, AR


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