Business Overview

Price Reduced – Owner has another business and is motivated to sell.

This year-round tree service company offers quick response to customers to diagnose, treat, prune, and remove trees. They also provide consultation services (as Certified Arborists) and planting services. The client base is approximately 70% residential and 30% commercial/government. 90% of sales are derived from tree removal and tree pruning. All other services comprise the 10% balance of revenues.

Serving northern metropolitan Atlanta and surrounding areas, the company has been well recognized in the industry for their affordable, dependable, and reliable services since 1999. The business has a great digital marketing footprint and employs a marketing specialist as well as a full-time sales staff.The staff of 9 (including the owners) consists of administrative personnel, professional tree climbers, truck drivers, and groundsmen.
Key company highlights:
• Perpetual Business – The Company boasts an average 45-60-day backlog of jobs!
• Financial growth opportunity – Develop and implement more advertising, add additional crews and salesmen, and add other services to boost revenues.
• A team focused on delighting the client – The Company boasts a highly experienced team focused on exceeding client expectations and customer education.
• Assets – The business fleet and service equipment have been well maintained and are kept in great condition.

Financial

  • Asking Price: $595,000
  • Cash Flow: $307,452
  • Gross Revenue: $803,650
  • EBITDA: N/A
  • FF&E: $325,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1999

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:9
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The administrative portion of the business is operated from a single office space at the lease rate of $500 per month. The business also rents a space nearby the office used to park equipment and vehicles and for staff meetups. The sale included equipment valued at $325K

Purpose For Selling:

Owner has another business

Additional Info

The venture was founded in 1999, making the business 23 years old.

The company has 9 employees and is situated in a building with approx. square footage of N/A sq ft.
The real estate is leased by the company for $500 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals resolve to sell companies. Nonetheless, the real factor vs the one they say to you might be 2 entirely different things. As an example, they may state "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these might simply be excuses to try to hide the reality of altering demographics, increased competitors, current reduction in earnings, or an array of various other reasons. This is why it is really vital that you not depend completely on a vendor's word, however instead, utilize the vendor's answer in conjunction with your general due diligence. This will paint a much more sensible picture of the business's current situation.

Existing Debts and Future Obligations

If the current business is in debt, which lots of 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 things like supplies, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can indicate that earnings margins are too tight. Many businesses fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that must be met or may result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location bring in brand-new consumers? Most times, companies have repeat customers, which form the core of their everyday revenues. Certain variables such as brand-new competitors sprouting up around the area, roadway building and construction, as well as staff turnover can affect repeat customers as well as adversely impact future profits. One important point to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business often, the better the possibility to construct a returning client base. A final idea is the basic area demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? Exactly how might the regional mean household income impact future earnings potential?