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: $75,000
  • 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 choose to sell businesses. Nevertheless, the true reason and the one they say to you may be 2 absolutely different things. For instance, they may state "I have way too many other obligations" or "I am retiring". For many sellers, these reasons stand. However, for some, these might just be reasons to try to hide the reality of altering demographics, increased competitors, recent reduction in earnings, or a variety of other factors. This is why it is extremely crucial that you not count absolutely on a seller's word, yet rather, make use of the seller's answer together with your general due diligence. This will paint a much more practical image of the business's existing scenario.

Existing Debts and Future Obligations

If the current business is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses take out loans so as to cover things like supplies, payroll, accounts payable, etc. Bear in mind that in some cases this can indicate that profit margins are too small. Numerous businesses fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally 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 agreements with vendors that have to be met or may cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area draw in new customers? Most times, operating businesses have repeat customers, which form the core of their everyday earnings. Certain aspects such as new competitors growing up around the location, roadway construction, as well as employee turnover can impact repeat consumers and negatively affect future profits. One crucial point to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business on a regular basis, the higher the opportunity to construct a returning consumer base. A last idea is the basic area demographics. Is the business situated in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the neighborhood mean household income effect future income prospects?