Business Overview

The company was started by the current owner in 1996 and has grown to become one of the areas most significant landscape design and installation companies. The Albuquerque, NM based company has a reputation for beautiful appealing landscape designs from xeriscape to traditional and is focused on the residential market.

The experienced and trained employees of the company afford each project a truly professional and detailed installation services. The company enjoys a strong customer referral network and capitalizes on its excellent website.

The company to include all furniture, fixtures and equipment, contracts, customer lists, and existing inventory, covenant not to compete and training is offered for sale for $325,000. It is anticipated that the Seller will finance 10% of the purchase price and that SBA guaranteed bank financing would be available for the business purchase with a buyer down payment of approximately $45,000. In addition to the training included in the sale, the Seller would be available to provide design consulting services as requested on a fee for services basis.

Financial

  • Asking Price: $325,000
  • Cash Flow: $122,715
  • Gross Revenue: $756,101
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: N/A
Purpose For Selling:

Retirement

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals resolve to sell operating businesses. Nonetheless, the genuine reason vs the one they tell you might be 2 totally different things. As an example, they may claim "I have way too many other commitments" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may just be reasons to try to hide the reality of transforming demographics, increased competitors, recent decrease in earnings, or a range of various other factors. This is why it is really crucial that you not count completely on a seller's word, yet rather, use the vendor's answer in conjunction with your total due diligence. This will repaint a more sensible picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses take out loans in order to cover things such as supplies, payroll, accounts payable, etc. Bear in mind that sometimes this can imply that profit 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 obligations to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that should be fulfilled or may lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area bring in new customers? Most times, businesses have repeat clients, which create the core of their daily revenues. Certain variables such as new competitors growing up around the location, roadway building and construction, as well as personnel turn over can influence repeat consumers and also negatively influence future revenues. One essential point to take into consideration is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business often, the better the opportunity to construct a returning consumer base. A final thought is the general area demographics. Is the business located in a densely populated city, or is it located on the edge of town? How might the regional average family earnings impact future income prospects?