Business Overview

This landscaping company is unique in its scope, structure and consistency, making it an extremely attractive opportunity for any potential buyer seeking close to half-a-million dollars in cash flow from a business that requires no day-to-day operational management from the owner. Specifically, this business only does commercial landscaping work, and 80% of the revenue comes from contracted revenue in equal monthly payments. The remaining 20% is earned on landscaping projects, such as color changeouts, tree trimming, installation, etc., exclusively for its contract maintenance clients. The business’ customers include HOAs, apartment complexes, warehouses, schools, professional complexes and other commercial properties. There are currently about 60 contracted maintenance customers, with the largest only accounting for about 5% of total revenue, and the top 10 at roughly 36%. This business does not qualify for SBA financing, so the seller will carry a note as part of the $1.5 million transaction for a qualified buyer. The sale price includes about $270,000 in FF&E. The seller is also open to discussing an extended post-closing relationship in a commissioned sales role, if that is something the new owner would like to consider.

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Financial

  • Asking Price: $1,500,000
  • Cash Flow: $432,800
  • Gross Revenue: $1,700,000
  • EBITDA: $432,800
  • FF&E: $270,000
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 1990

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:25
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business operates out of a warehouse district in Dallas County. The owner has housed the operation from this location for nearly 20 years, and has no plans to relocate. The property has a 12,000 sq. ft. warehouse and a 15,000 sq. ft. secured yard. All of the business’ equipment is securely stored on site, with the vehicles primarily being kept inside and trailers in the yard.

Is Support & Training Included:

Seller is available to remain with the business long-term in a part-time commissioned ales role should new ownership be interested in that arrangement.

Purpose For Selling:

Retirement

Pros and Cons:

There is a ton of competition in this industry, but from day one the owner has designed this business with the goal in mind of creating predictable, replicatable and secure revenue. So it's a unique business from that standpoint, and there is ample clientele in the marketplace to pursue that fits this business' client profile.

Opportunities and Growth:

The business does very little project-based revenue - in fact, the 20% of total sales that comes from projects is strictly for its contracted maintenance clients that specifically request this service. If a new wanted to grow the business immediately, adding an installation crew and promoting this offering to eating clients, as well as other potential customers, would lead to instant additional work.

Additional Info

The company was started in 1990, making the business 32 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals choose to sell operating businesses. Nonetheless, the genuine reason vs the one they tell you might be 2 entirely different things. For instance, they may claim "I have too many other responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may just be justifications to try to hide the reality of altering demographics, increased competition, current decrease in earnings, or an array of other reasons. This is why it is very important that you not rely absolutely on a seller's word, yet instead, make use of the vendor's answer combined with your general due diligence. This will paint a more practical image of the business's present circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies finance loans in order to cover items like inventory, payroll, accounts payable, and so on. Bear in mind that sometimes this can mean that revenue margins are too tight. Many businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that have to be fulfilled or may cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location bring in brand-new consumers? Often times, companies have repeat consumers, which create the core of their daily revenues. Particular aspects such as brand-new competition sprouting up around the area, road construction, and employee turn over can influence repeat customers and also negatively affect future revenues. One essential thing to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business on a regular basis, the greater the chance to construct a returning client base. A last idea is the basic area demographics. Is the business situated in a largely inhabited city, or is it located on the outside border of town? How might the neighborhood typical household income effect future revenue prospects?