Listing ID: 71441
Green roof patented product technology company. This division of a European company is being sold with a net operating loss of approximately $1,100,000. The company has two supply agreements for sedum (drought tolerant vegetation) blankets which it then installs. One major New York area client with ongoing revenues.
A Buyer may acquire the operating business (with a major sales contract) for $563,000 or the operating business with the Net Operating Loss for a total of $1,465,373.
Benefits to green roof technology clients are water management, building control temperature, and environmentally enhanced working environment.
Financial information in this ad based on 2020 results.
Fast growing industry. Parent company will train new owner and provide ongoing consulting services. Customers maintain the sedum post installation without need for sophisticated horticultural knowledge.
The parent company is flexible and committed to supporting the entity being sold for the long term.
Please contact us for a detailed presentation of the business as well as for financial and operational information (released after signing of confidentiality agreement).
- Asking Price: $1,465,373
- Cash Flow: $139,627
- Gross Revenue: $852,400
- EBITDA: $73,596
- FF&E: N/A
- Inventory: $90,000
- Inventory Included: N/A
- Established: 2018
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
Willing to enter into both long-term product supply and consulting support subject to definitive agreement
Focus on Europe based business interests.
Similar business models lacking patents or long operating history.
Partner with LEED related architects and design build professionals. Leverage growing demand for green roofs with major corporate and government building owners. Ally with major solar companies to provide a "green package" for clients.
The company was founded in 2018, making the business 4 years old.
The sale doesn't include inventory valued at $90,000*, which ins't included in the listing price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people resolve to sell operating businesses. Nonetheless, the genuine factor and the one they say to you might be 2 absolutely different things. As an example, they might say "I have too many various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may simply be justifications to try to conceal the reality of transforming demographics, increased competition, current reduction in profits, or a variety of various other reasons. This is why it is extremely vital that you not depend entirely on a vendor's word, yet instead, make use of the seller's response in conjunction with your total due diligence. This will paint a much more practical image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Numerous companies take out loans in order to cover points such as supplies, payroll, accounts payable, etc. Remember that in some cases this can imply that earnings margins are too tight. Many businesses fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that should be satisfied or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in new consumers? Many times, operating businesses have repeat customers, which form the core of their daily revenues. Particular factors such as brand-new competition growing up around the location, roadway building, as well as personnel turnover can influence repeat customers as well as negatively impact future revenues. One important point to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business often, the higher the possibility to build a returning customer base. A last thought is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? Exactly how might the neighborhood average house income influence future income prospects?