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Someone I know is selling his company. Roughly 20K in equipment, along with 70 accounts. He is asking 40k....is that too much??

He is asking for too much.

I tend to agree with Arlen, BTW welcome to LMF...

It could be too much... depends...
Is the 20k equipment value, replacement value, or actual value of the used equipment?
Just how used is the equipment?
How large a crew is working? Can you afford to keep them?
Will he show you his books? how much has this business netted him in the last few years?
Is it really a business or will you be buying yourself a job?? and if you do, what assurance do you have that the majority of his 70 will remain?....
Lots of things to consider, Don't spend 40k to find you will need another job so you can afford to hire other workers... KennyV

LawnBoy420 said:

Someone I know is selling his company. Roughly 20K in equipment, along with 70 accounts. He is asking 40k....is that too much??

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DON'T WALK AWAY RUN

If the 70 accounts are satisfied and loyal, it might be fine. It will take a close look at the books to determine if there is 20k worth of "Goodwill" in the business. That is a LOT of Goodwill in a business priced at $40k.

benski said:

If the 70 accounts are satisfied and loyal, it might be fine. It will take a close look at the books to determine if there is 20k worth of "Goodwill" in the business. That is a LOT of Goodwill in a business priced at $40k.

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This thread is nearly 6 weeks old I would think the OP has made a decision on this long ago.

LawnBoy420 said:

Someone I know is selling his company. Roughly 20K in equipment, along with 70 accounts. He is asking 40k....is that too much??

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What's his annual gross? Does he clear enough to make a $40k investment worth it? How much of his equipment is going to last through your first year? How long is your mowing season? I would definitely want to know how much he has grossed (honestly) over the last 2 - 3 years. Also consider that if he is looking to get out of the business, why does he want to sell and how badly has he turned off his customers with less than stellar performance? There's a lot of considerations and remember that this is a highly competitive business. You can lose a yard to a 12 year old with a push mower.

I agree with you a whole lot.