Listing ID: 71383
An incredible opportunity to acquire a well-established Agricultural manufacturing and service company based in New England. This family business has been servicing its clients for over 59 years, by providing custom mixed fertilizers, crop protection chemicals, seeds, lime, turf fertilizer and other ancillary products. The company services its New England based customers from two convenient locations in Vermont and Maine. With the highly skilled staff of agronomists and crop specialists, the company provides valuable support to its customers and a division that uses spraying equipment equipped with the latest technology to deliver fertilizer and crop control products efficiently and safely. The company services over 1250 active clients, with revenue comprising of 68% from fertilizer sale, 12% of revenue from Pesticides, 10% from Seeds, 3% from lime, and 7% from other services. The business has grown steadily in 2021 during the pandemic and is positioned for additional growth with the new owners. The seller is ready to retire and is looking to pass on this incredible opportunity to the next owner.
- Asking Price: N/A
- Cash Flow: N/A
- Gross Revenue: $13,965,938
- EBITDA: $592,787
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1987
- Property Owned or Leased:Own
- 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 company owns two locations: the first one is a 40,930-sf. building located in Vermont. The second facility is located in Maine, and is a 78,960-sf building on 51.9 acres.
Owner will ensure a smooth transition
The business was started in 1987, making the business 35 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell companies. However, the genuine reason and the one they say to you might be 2 totally different things. For instance, they might claim "I have a lot of various obligations" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may just be excuses to try to hide the reality of transforming demographics, increased competition, current decrease in revenues, or a range of various other reasons. This is why it is extremely essential that you not rely totally on a seller's word, but rather, utilize the vendor's response along with your overall due diligence. This will repaint a more realistic picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Lots of operating businesses take out loans in order to cover points like supplies, payroll, accounts payable, and so on. Remember that sometimes this can imply that revenue margins are too thin. Lots of companies fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that should be met or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location draw in new consumers? Most times, companies have repeat consumers, which create the core of their day-to-day profits. Particular elements such as brand-new competition sprouting up around the area, road building and construction, and employee turnover can influence repeat consumers and negatively influence future earnings. One crucial thing to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business regularly, the greater the opportunity to construct a returning customer base. A last idea is the general area demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? Exactly how might the local typical house earnings influence future income potential?