Listing ID: 70148
This thriving landscape design business serves the Knoxville metro area with landscape planning and construction services. Most work consists of large projects with little ongoing maintenance work. A sterling reputation, a solid staff and newer, dependable equipment promise a great foundation for a new owner, or a great acquisition opportunity for another landscape firm.
Real estate is available to a buyer for purchase or lease, but is not included in the asking price.
An SBA lender has provided a preliminary approval for the business.
The business is for sale due to the owner’s retirement.
- Asking Price: $650,000
- Cash Flow: $523,458
- Gross Revenue: $1,566,995
- EBITDA: N/A
- FF&E: $190,000
- Inventory: $10,000
- Inventory Included: Yes
- Established: 1999
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The venture was founded in 1999, making the business 23 years old.
The transaction shall include inventory valued at $10,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell companies. Nonetheless, the real factor vs the one they say to you may be 2 absolutely different things. For instance, they may state "I have a lot of various responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may just be reasons to attempt to conceal the reality of transforming demographics, increased competition, recent reduction in profits, or a range of other reasons. This is why it is extremely vital that you not rely totally on a vendor's word, but instead, use the vendor's response combined with your general due diligence. This will repaint an extra realistic picture of the business's present circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of operating businesses finance loans in order to cover things such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can indicate that revenue margins are too small. Many businesses fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that need to be met or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location bring in new customers? Many times, companies have repeat customers, which develop the core of their everyday earnings. Particular factors such as brand-new competitors growing up around the location, roadway building, and employee turnover can affect repeat clients and also negatively influence future revenues. One important point to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business on a regular basis, the better the opportunity to build a returning customer base. A last idea is the general area demographics. Is the business situated in a densely populated city, or is it located on the outskirts of town? Exactly how might the local average home earnings effect future revenue prospects?