Listing ID: 73812
Niche landscaping service business established for 30 years in Columbus, OH. Provides a niche service to commercial, residential, and government clients throughout the city. Current Owner has developed stream of highly profitable, recurring income over the years and has grown the business solely by reputation.
Jobs currently come by either referral or from established customers.
Current Owner handles all marketing and sales efforts. There has been almost no advertising spend in recent years and all growth is through word of mouth. A motivated Buyer has an excellent opportunity to improve advertising and sales efforts to continue impressive growth of the business.
Owner is looking to retire and is willing to help transition the business to a Buyer. Great opportunity to increase marketing efforts and further build the repeatable income that the Owner has developed.
Business is approved for SBA loan.
Reply to Mike@Hedge-financial.com if interested.
- Asking Price: $500,000
- Cash Flow: $200,000
- Gross Revenue: $505,000
- EBITDA: N/A
- FF&E: $200,000
- Inventory: $50,000
- Inventory Included: Yes
- Established: 1992
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
Seller willing to fully transition
The business was founded in 1992, making the business 30 years old.
The sale does include inventory valued at $50,000, which is included in the asking price.
The company has 5 employees and is located in a building with approx. square footage of N/A sq ft.
The property is leased by the business for $1,300 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell businesses. Nevertheless, the real factor and the one they tell you might be 2 entirely different things. For instance, they may say "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might just be excuses to attempt to conceal the reality of transforming demographics, increased competition, current reduction in revenues, or a range of various other factors. This is why it is very essential that you not depend completely on a seller's word, however instead, make use of the seller's response in conjunction with your overall due diligence. This will repaint an extra practical image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Lots of operating businesses borrow money in order to cover points such as stock, payroll, accounts payable, so on and so forth. Remember that in some cases this can mean that revenue margins are too thin. Lots of organisations fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that should be fulfilled or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area attract new clients? Most times, companies have repeat clients, which develop the core of their everyday revenues. Particular aspects such as new competition sprouting up around the location, road building, and personnel turnover can impact repeat clients and adversely influence future earnings. One crucial 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 main road? Undoubtedly, the more people that see the business regularly, the greater the opportunity to build a returning consumer base. A last idea is the general location demographics. Is the business located in a densely populated city, or is it located on the edge of town? Just how might the neighborhood mean home income effect future income potential?