Landscaping Business Interviews Grand Rapids 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

Aerotek
(616) 974-3500
4665 44th St SE Ste A1106
Grand Rapids, MI
Creative Financial Staffing Cfs
(616) 752-4280
55 Campau Ave NW Ste 300
Grand Rapids, MI
Creative Group the
(616) 454-3891
333 Bridge St NW
Grand Rapids, MI
Critical Choice
(616) 726-1398
1542 Franklin St SE
Grand Rapids, MI
Manpower
(616) 957-0461
2930 Broadmoor Ave SE
Grand Rapids, MI
Pro-Active Search & Service
(616) 363-8826
4056 Plainfield Ave NE
Grand Rapids, MI
Manpower
(616) 361-7200
3144B Plainfield Ave NE
Grand Rapids, MI
Labor Ready
(616) 530-3800
2438 28th St SW
Grand Rapids, MI
Skilled Trades Company the
(616) 776-0844
648 Monroe Ave NW
Grand Rapids, MI
Karl Industries Inc
(616) 246-1997
3685 Roger B Chaffee Mem
Grand Rapids, 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

Employment Plus

(517) 323-4710
6005 W. St. Joe HWY Suite#303
Lansing, MI


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