Listing ID: 76169
Sale Pending… Founded over 30 years ago, this company has a reputation for appealing landscape designs from xeriscape to traditional and is focused on the residential market. The company’s unique design process and construction services cater to high-end homes by providing exceptional creativity and elegance. Its long-term employees embrace work culture and values that are unique to the business as they are rooted deep in its history and are a primary reason for the continued success of the company over its existence. We believe this would make a great acquisition for an individual buyer with industry experience motivated to own and manage a well-seasoned landscaping business. This would also make a great
acquisition candidate for an existing landscape business looking to break into the southern Colorado market, and looking to expand by acquisition, or a synergistic buyer looking to diversify. Financials reflect Jan – Nov 2021.
- Asking Price: $575,000
- Cash Flow: $588,631
- Gross Revenue: $2,270,056
- EBITDA: $588,631
- FF&E: $150,000
- Inventory: $35,000
- Inventory Included: Yes
- Established: 1984
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:27
- Furniture, Fixtures and Equipment:N/A
The venture was started in 1984, making the business 38 years old.
The deal does include inventory valued at $35,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell businesses. However, the real factor vs the one they say to you may be 2 absolutely different things. For instance, they may claim "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these may simply be justifications to attempt to conceal the reality of changing demographics, increased competitors, recent decrease in earnings, or an array of various other reasons. This is why it is very important that you not count completely on a seller's word, yet instead, utilize the vendor's solution in conjunction with your overall due diligence. This will repaint a much more sensible image of the business's existing scenario.
Existing Debts and Future Obligations
If the current company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses take out loans so as to cover points like inventory, payroll, accounts payable, etc. Remember that in some cases this can suggest that profit margins are too small. Numerous organisations fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that must be fulfilled or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area attract new clients? Many times, operating businesses have repeat clients, which form the core of their daily revenues. Certain elements such as brand-new competitors growing up around the area, roadway construction, as well as staff turnover can impact repeat customers and also negatively affect future incomes. One important thing to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business regularly, the better the chance to construct a returning consumer base. A final thought is the general area demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the neighborhood average house earnings impact future income potential?