Listing ID: 78882
This profitable business offers contracted services to commercial and residential clients for landscaping needs and winter maintenance. Operating successfully for over 30 years, this well-established business is a great opportunity to add to an existing book of business or start up new. They have a solid base of multi-year contracts along with many repeat customers. Seller is looking forward to retirement and is interested in staying on as a manager or extra hand. Contact Broker for more details.
- Asking Price: $595,000
- Cash Flow: $219,705
- Gross Revenue: $1,146,336
- 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 sorts of reasons people choose to sell operating businesses. Nonetheless, the real reason vs the one they tell you might be 2 absolutely different things. For instance, they may say "I have way too many various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may simply be justifications to attempt to conceal the reality of transforming demographics, increased competitors, recent reduction in earnings, or a range of other factors. This is why it is extremely crucial that you not depend absolutely on a seller's word, but rather, make use of the vendor's answer combined with your overall due diligence. This will paint a much more practical picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Many companies borrow money so as to cover points such as inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can imply that revenue margins are too tight. Lots of companies come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that have to be satisfied or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location attract brand-new consumers? Most times, companies have repeat consumers, which create the core of their daily profits. Particular factors such as brand-new competitors sprouting up around the location, roadway building and construction, and also personnel turnover can affect repeat clients and also adversely affect future revenues. One essential point to think about is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business on a regular basis, the greater the chance to develop a returning customer base. A final thought is the basic area demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? Exactly how might the regional average house income impact future earnings potential?