Business Overview

Turnkey Commercial landscaping business brings in recurring revenue with long established contracts with commercial clients. This company has great potential to grow. Also could be a valuable extension to an already existing landscaping business. Arizona is one of the fastest growing regions in the nation. The market is expanding in every direction. There is always demand for quality landscape companies.

Financial

  • Asking Price: $99,500
  • Cash Flow: N/A
  • Gross Revenue: $201,629
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Why is the Current Owner Selling The Business?

There are all types of reasons individuals decide to sell operating businesses. However, the true factor vs the one they tell you may be 2 absolutely different things. For instance, they may state "I have too many various responsibilities" or "I am retiring". For many sellers, these reasons stand. But, for some, these may just be reasons to try to conceal the reality of transforming demographics, increased competitors, recent decrease in earnings, or an array of other factors. This is why it is extremely crucial that you not depend absolutely on a seller's word, yet instead, use the seller's response in conjunction with your total due diligence. This will repaint a much more sensible picture of the business's existing scenario.

Existing Debts and Future Obligations

If the current company is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Many companies finance loans with the purpose of covering items like supplies, payroll, accounts payable, etc. Keep in mind that in some cases this can imply that revenue margins are too tight. Lots of businesses fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that must be met or might cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location bring in new consumers? Most times, companies have repeat clients, which develop the core of their day-to-day revenues. Certain factors such as brand-new competition sprouting up around the location, roadway building, as well as employee turnover can affect repeat customers as well as adversely impact future incomes. One vital thing to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Obviously, the more individuals that see the business on a regular basis, the better the opportunity to construct a returning client base. A last idea is the general location demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? How might the local average household income impact future income prospects?