Business Overview

Not an ordinary landscaping company! This award-winning Orange County-based luxury landscape design-build-maintenance company creates exceptional high-end outdoor experiences for the most discerning homeowners. Typical design-build projects are over $100,000. The company also offers maintenance services for luxury homeowners that want their landscapes maintained at the highest quality. The company does not compete with typical landscaping companies offering basic gardening services for tract homes.

The company had $1.2 million sales in 2020 with $403,002 Discretionary Earnings and is on track for $1.5 million sales in 2021. The company has been established for 30 years and has an experienced staff of 6 with several having been with the company for over 20 years.

The company boasts excellent Yelp and Google Reviews. The seller has built a business that is scalable, easy to run, and has excellent books and records.

The business has been pre-approved by SBA lenders for qualified buyers with 10-year financing and a down payment of $165,349.

The company does not have an active marketing campaign and does not have any paid advertising programs in place. Most inquiries are from referrals, local residents/businesses that see the wrapped trucks and yard signs during construction, and from the brand being well established in Orange County.

Summary
* $1,282,588,Gross Sales
* $403,002 Discretionary Earnings
* Business offered at $1,050,000
* $100,000 Seller Note 7%. 60 months
* $165,349 down payment with SBA financing
* Licensed C27 Landscape Contractor, Seller will RMO for Buyer

The company has a well-trained professional staff of 6 full-time W2 employees:
* Office Manager – responsible for admin, invoices, etc
* Construction Foreman
* Maintenance Foreman
* 3 Construction & Maintenance Crew

Down Payment & Working Capital Required
The down payment required for this transaction is a minimum of $107,400 cash down payment with SBA financing. Additional working capital of approximately $50,000 is required. A minimum FICO score of 700 is required for SBA financing.

Seller Role & Buyer Requirements
The Seller presently works full time in the business and does all of the bids and quotes as well as project and general management. The Seller does not work in the field. This is not an absentee-run business and the buyer will need to actively run the business.

After 30 years of running the day-to-day business, the Seller no longer wants to actively run a business. The Seller will act as the RMO (Responsible Managing Officer) for one year while the Buyer obtains their C27 Landscape Contractors License and is willing to consult as an independent contractor after completion of training.

Inquiries from Principals Only

Financial

  • Asking Price: $1,050,000
  • Cash Flow: $403,002
  • Gross Revenue: $1,282,588
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1987

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:6
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

The Seller will train 4 weeks/20 hours per week after training the seller is willing to stay on as a consultant for an indefinite amount of time.

Purpose For Selling:

After 30 years of running the day-to-day business, the Seller no longer wants to

Opportunities and Growth:

The company does not have an active marketing campaign and does not have any paid advertising programs in place. Most inquiries are from referrals, local residents/businesses that see the wrapped trucks and yard signs during construction, and from the brand being well established in Orange County. With an active marketing program in place, the company has the potential to grow.

Additional Info

The venture was founded in 1987, making the business 35 years old.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals resolve to sell companies. Nevertheless, the true factor vs the one they say to you might be 2 completely different things. As an example, they may claim "I have too many various commitments" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these might just be excuses to try to conceal the reality of altering demographics, increased competition, current reduction in profits, or a variety of other reasons. This is why it is really crucial that you not depend totally on a seller's word, however rather, use the vendor's solution in conjunction with your total due diligence. This will paint a much more sensible picture of the business's current situation.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many operating businesses borrow money so as to cover points such as stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can mean that revenue margins are too small. Many organisations fall under a revolving door of taking loans as a way to pay back other loans. In addition to 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 need to be met or may result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location attract new consumers? Many times, businesses have repeat clients, which develop the core of their daily profits. Specific factors such as new competition sprouting up around the location, road building, and also employee turnover can impact repeat clients and also negatively affect future revenues. One crucial point to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Certainly, the more people that see the business regularly, the better the possibility to develop a returning customer base. A final thought is the basic area demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? How might the local average house earnings effect future revenue potential?