Landscaping Business Interviews Gallup NM

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

Jarboe & Associates
(505) 982-5445
Santa Fe, NM
Adecco
(505) 884-0748
3540 NE Pan American Fy # E
Albuquerque, NM
Aerotek
(505) 342-5000
6700 Jefferson St NE Bldg E
Albuquerque, NM
Group Powell One
(505) 982-9131
5 Bisbee Ct Ste 111
Santa Fe, NM
Labor Ready
(505) 986-9590
1527 5th St
Santa Fe, NM
Manpower Temporary Services
(505) 345-6200
4100 Osuna Rd NE
Albuquerque, NM
Labor Finders
(505) 898-8885
2701 2nd St NW
Albuquerque, NM
Snelling Personnel Services
(505) 345-3334
5981 Jefferson St NE Ste C
Albuquerque, NM
New Mexico Health Resources Inc
(505) 260-0993
300 San Mateo Blvd NE
Albuquerque, NM
Robert Half Finance & Accounting
(505) 884-4557
6501 Americas Pkwy NE
Albuquerque, NM

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

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