Listing ID: 72993
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.
- Asking Price: $325,000
- Cash Flow: $122,715
- Gross Revenue: $756,101
- EBITDA: N/A
- FF&E: $75,000
- Inventory: N/A
- Inventory Included: Yes
- Established: N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell operating businesses. Nonetheless, the genuine factor and the one they tell you might be 2 absolutely different things. As an example, they might say "I have too many various commitments" or "I am retiring". For many sellers, these reasons stand. However, for some, these might just be reasons to attempt to conceal the reality of transforming demographics, increased competition, recent decrease in earnings, or a variety of other factors. This is why it is extremely vital that you not rely completely on a seller's word, yet instead, use the vendor's answer together with your overall due diligence. This will repaint an extra sensible image of the business's present situation.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies take out loans in order to cover points such as inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can suggest that earnings margins are too thin. Numerous companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that must be met 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 brand-new consumers? Most times, businesses have repeat customers, which develop the core of their day-to-day earnings. Specific aspects such as new competitors sprouting up around the location, road construction, and also staff turnover can influence repeat clients as well as adversely influence future revenues. One crucial thing to think about is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business on a regular basis, the greater the possibility to build a returning client base. A last thought is the basic location demographics. Is the business located in a densely inhabited city, or is it located on the outskirts of town? Exactly how might the local average home earnings impact future income potential?