Landscaping Business Interviews Fort Smith 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

Oasis Staffing
(479) 452-2300
2600 Zero St Ste F
Fort Smith, AR
Snelling Personnel Services
(479) 782-4911
3901 Rogers Ave
Fort Smith, AR
Penmac
(479) 478-9106
1115 S Waldron Rd Ste 201
Fort Smith, AR
Kelly Services
(479) 646-6569
4301 Regions Park Dr
Fort Smith, AR
A-One Staffing
(479) 709-9771
2321 Rogers Ave
Fort Smith, AR
Tec Staffing Services
(479) 785-3022
19th & Rogers
Fort Smith, AR
Labor Ready
(479) 783-3465
1800 S C St
Fort Smith, AR
Express Personnel Services
(479) 452-6400
1217 S Waldron Rd Ste H
Fort Smith, AR
Penmac Personnel Services
(479) 478-9106
1115 S Waldron Rd Ste 201
Fort Smith, AR
Superior Senior Care
(479) 783-1206
101 N 10th St
Fort Smith, AR

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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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