Listing ID: 71435
A great opportunity to own a well-established landscaping business with a loyal clientele in Rhode Island. Established over 10 years ago, this company specializes in landscaping services for commercial and residential customers. Over the years, the business was able to steadily grow year-over-year due to its outstanding reputation, reliability, and attention to detail. The company’s customer base is 90% residential, and 10% commercial. The business has a strong recurring and loyal customer base, with most of their customers are auto billed on a recurring weekly basis. The company owns newer equipment that has been well-maintained over the years and is included with the business. With already successful presence and great online reviews, this Rhode Island based company is a great opportunity for a motivated buyer to purchase an established brand and to expand through a strategic growth opportunity. Currently, the company only operates 9 months of the year. With the addition of winter services, this could be a great area of expansion for the new buyers. Great opportunity for a new buyer to take advantage of the current company processes that have been streamlined and automated.
- Asking Price: $350,000
- Cash Flow: $151,879
- Gross Revenue: $842,621
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2009
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:15
- Furniture, Fixtures and Equipment:N/A
Seller has other business interests
The company was started in 2009, making the business 13 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell operating businesses. However, the genuine factor and the one they say to you may be 2 entirely different things. For instance, they might claim "I have way too many other commitments" or "I am retiring". For many sellers, these factors stand. But also, for some, these might simply be reasons to try to conceal the reality of altering demographics, increased competitors, current reduction in revenues, or a range of other factors. This is why it is really essential that you not count completely on a vendor's word, but rather, make use of the vendor's response combined with your overall due diligence. This will repaint an extra practical picture of the business's current situation.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Many companies finance loans so as to cover points like inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can indicate that revenue margins are too small. Numerous businesses come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that should be fulfilled or might cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location attract brand-new customers? Often times, businesses have repeat consumers, which form the core of their day-to-day earnings. Particular factors such as new competition growing up around the area, roadway construction, and also employee turnover can impact repeat clients and also negatively influence future incomes. One vital thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Certainly, the more people that see the business regularly, the better the chance to develop a returning client base. A last thought is the general area demographics. Is the business situated in a largely inhabited city, or is it situated on the outskirts of town? How might the local mean family earnings effect future earnings potential?