Business Overview

This East Valley Arborist Business has many 5-star Google reviews and provides tree trimming, planting, removal, and treatment of pests and diseases. Business is owner operated with one contract employee. Chipper is included in the sale of this business.

Financial

  • Asking Price: $130,000
  • Cash Flow: $57,000
  • Gross Revenue: $250,000
  • EBITDA: $57,000
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2018

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:1
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 week training period

Purpose For Selling:

Moving out of state

Additional Info

The business was established in 2018, making the business 4 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people resolve to sell operating businesses. Nevertheless, the real reason and the one they say to you may be 2 totally different things. As an example, they may claim "I have way too many various obligations" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might just be justifications to attempt to conceal the reality of altering demographics, increased competition, recent decrease in profits, or a variety of various other reasons. This is why it is really important that you not depend absolutely on a seller's word, but rather, make use of the seller's solution along with your total due diligence. This will repaint a more reasonable picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses finance loans in order to cover items such as supplies, payroll, accounts payable, so on and so forth. Remember that in some cases this can suggest that profit margins are too thin. Numerous businesses come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that need to be fulfilled or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area bring in brand-new consumers? Many times, businesses have repeat customers, which create the core of their day-to-day revenues. Particular factors such as brand-new competitors growing up around the area, road building, and also staff turn over can influence repeat consumers and adversely influence future revenues. One essential point to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business often, the better the chance to construct a returning consumer base. A last thought is the basic area demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? How might the regional typical household income influence future income potential?