How do I check a landscaping company’s recurring lawn clients before buying?

Recurring clients are the heart of a lawn-care business, so check them like you would a lease: closely. Start with the list. For each client you want the service provided, how often, how it is billed and how long they have been with the company. Gaps and recent cancellations tell you more than the totals. Next, match the list to the money. Have your accountant compare invoices with deposits and with the financial statements. Cash payments and unbilled friendly work are common in this field, and they should be accounted for.

Look at the routes. Dense routes are efficient; scattered ones cost fuel and time. Ask which clients are the most profitable and which the crews dread. Ask also how each client came to the company. Clients found through referrals or advertising are different from clients who follow the owner. If the seller is leaving, consider asking for help with introductions and a period of support during the handover. A short call from the seller to key clients, announcing the new owner, usually settles more worries than any letter will.

Key takeaways

• Match the client list to invoices, deposits and financial statements.
• Look at cancellations and gaps as closely as at totals.
• Find out which clients are tied to the owner personally.
• Plan a personal introduction for your key clients.