Business Overview

The Company provides a wide-ranging list of tree services for both residential and commercial customers. In addition to tree removal/ stump grinding, it offers tree/shrub trimming/pruning, cabling, fertilization, disease treatment and insect control. With three ISA certified arborists on staff, they bring extensive expertise and professionalism to all aspects of tree care.

Financial

  • Asking Price: $400,000
  • Cash Flow: $49,135
  • Gross Revenue: $805,191
  • EBITDA: N/A
  • FF&E: $50,000
  • Inventory: N/A
  • Inventory Included: N/A
  • 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:13
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business operates from a property that is also owned by the seller under a separate entity. A nearly 2,000 square foot, wood frame/ concrete slab business office is located on the property. Depending on the circumstances of a sale, the seller has some flexibility regarding the disposition of the real estate. Generally, the seller's preference is to lease facilities to the new business owner.

Is Support & Training Included:

Will train for 2 weeks @ $0 cost. Synergistic to providing its full range tree services, The Company sells firewood year-round from their location. The Company sells a mix of seasoned woods suitable for fireplaces and offers a variety of popular cooking woods including oak, pecan, and fruit woods. In addition to customers who buy cooking wood on-site, The Company provides wood to some restaurants. The Company sources firewood not only from its own customers, but also from other tree service companies when space is available.

Purpose For Selling:

Owned/operated the company for more than 30 years, and is past full retirement.

Pros and Cons:

With its low-barrier to entry, the tree-service industry is highly fragmented and includes many small operator and self-employed individuals. According to IBISWorld, over 90% of service providers are minor players. Service providers to commercial customers are generally lager companies, as compared with residential providers. Market concentration is expected to remain low for coming years.

Opportunities and Growth:

Generally, tree services are scalable and can be grown in accordance with the goals of the owner. There is seasonality, and business success is maximized if the operator has the ability to grow or shrink their staff to match workload.

Additional Info

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

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals choose to sell companies. Nevertheless, the real factor and the one they tell you might be 2 completely different things. For instance, they might say "I have a lot of other obligations" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might just be excuses to try to conceal the reality of altering demographics, increased competitors, recent decrease in earnings, or a variety of various other factors. This is why it is very vital that you not count completely on a vendor's word, however rather, make use of the seller's answer along with your overall due diligence. This will paint a much more reasonable picture of the business's present scenario.

Existing Debts and Future Obligations

If the current company is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans so as to cover things like inventory, payroll, accounts payable, etc. Keep in mind that sometimes this can suggest that profit margins are too small. Lots of companies fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future commitments to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that need to be met or may lead to penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location attract new consumers? Many times, businesses have repeat consumers, which form the core of their everyday profits. Particular elements such as brand-new competition growing up around the location, road construction, and employee turnover can affect repeat customers and adversely affect future incomes. One essential thing to think about is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business on a regular basis, the greater the possibility to build a returning consumer base. A last idea is the basic location demographics. Is the business placed in a largely inhabited city, or is it situated on the edge of town? How might the regional average house income influence future earnings potential?