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 decide to sell businesses. However, the genuine factor vs the one they say to you might be 2 completely different things. For instance, they may state "I have too many various commitments" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these might simply be justifications to try to hide the reality of transforming demographics, increased competition, current decrease in earnings, or an array of other reasons. This is why it is extremely crucial that you not rely entirely on a vendor's word, however instead, use the seller's solution in conjunction with your overall due diligence. This will paint an extra sensible picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies take out loans with the purpose of covering things such as supplies, payroll, accounts payable, and so on. Remember that in some cases this can mean that profit margins are too tight. Many businesses come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that must be satisfied or might result in fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area draw in brand-new consumers? Often times, businesses have repeat consumers, which create the core of their everyday revenues. Particular variables such as brand-new competitors sprouting up around the area, road construction, and also employee turnover can influence repeat clients and negatively affect future earnings. One crucial point to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Clearly, the more people that see the business on a regular basis, the higher the chance to develop a returning customer base. A final thought is the general area demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? How might the neighborhood mean home income effect future revenue potential?