Listing ID: 80205
The business has been providing turf management services for natural grass athletic fields for Atlanta area schools for over 15 years. Business growth has been achieved strictly through referrals and the client base today includes many of the top schools with some of the top sports teams in the area. The schools have been loyal clients over the years because their athletic fields have been kept in top shape throughout the year. The services provided are not the lowest cost option available in the market, but quality of service is very important to the schools, coaches and athletes that perform and practice on these athletic fields. New clients have often been won when coaches from visiting teams see the fields maintained by the business and want their schools to have the same quality of fields for their teams.
Client contracts are structured such that the business receives a fixed monthly fee from all clients, so revenue does not decline in the winter months. Also, multi-year contacts are in place with several clients. During the slower Winter and Spring months, the owner works a 10-15 hour work week in the Winter and a 30-35 work week in the Spring.
Most of the staff have been with the business for several years, so a new owner would inherit a knowledgeable and well supervised turf management crew.
The owner will sell or lease the real estate. The sale price for the real estate is $675,000, and lender financing is an option.
- Asking Price: $583,000
- Cash Flow: $210,139
- Gross Revenue: $840,029
- EBITDA: N/A
- FF&E: $360,000
- Inventory: $8,000
- Inventory Included: Yes
- Established: 2002
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
The headquarters for the business is a 3,031 sq. ft. warehouse located on a 1.8 acre lot. The warehouse is used strictly for storage and maintenance of equipment, and storage of supplies. The owner has an office in his home. A second smaller building consisting of 1,167 sq. ft. is also on the lot, but is not currently being used by the business. This building could be used for office space or some other purpose, and could be leased or purchased by the new owner.
Will train for 4 weeks @ $0 cost. A qualified Buyer would need to have business management experience and experience in landscaping services or turf management.
The owner is starting a new business in the agriculture industry.
Competition in the business's market is limited, and the business has lost only one client in seven years. If a new owner pursued other geographic markets and expanded the services offered, they would face other competitors.
There are several possibilities for growing the business. The business has served a limited geography of the Atlanta metro area and has focused on providing services for public and private schools. The business has excelled in its target market, and its track record and reputation for delivery of high quality turf management services will be a plus if a new owner should decide to pursue a larger geography and/or offer more services. In addition to pursuing more school clients, the business could pursue providing services for parks and recreation department's athletic fields. Sod installation and other landscaping services could be offered. Maintenance services for synthetic turf could be added as today the business only maintains natural grass fields. Laser-grading of the dirt surfaces for the base paths and pitcher's mound of baseball fields could be offered. There is a growing demand for this service and clients often ask the owner if he can provide this service. And, the business could expand beyond maintaining athletic fields to providing some services for residential and commercial properties. Some owners of high end residential and commercial properties require that their properties be maintained by golf course equipment to provide the quality of turf maintenance they require.
The business was started in 2002, making the business 20 years old.
The deal does include inventory valued at $8,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell operating businesses. Nevertheless, the genuine factor vs the one they say to you might be 2 completely different things. As an example, they might claim "I have way too many other commitments" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might simply be justifications to try to hide the reality of transforming demographics, increased competition, current reduction in revenues, or a variety of various other reasons. This is why it is extremely crucial that you not rely completely on a seller's word, yet instead, make use of the seller's response combined with your general due diligence. This will paint a more reasonable picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Many companies borrow money with the purpose of covering things like stock, payroll, accounts payable, and so on. Remember that in some cases this can imply that earnings margins are too thin. Numerous organisations come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that need to be met or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area bring in new clients? Many times, companies have repeat consumers, which form the core of their day-to-day profits. Specific variables such as brand-new competitors growing up around the area, road building and construction, and also employee turnover can influence repeat consumers and adversely influence future profits. One essential point to think about is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more people that see the business often, the higher the possibility to construct a returning customer base. A final thought is the basic location demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? Just how might the regional mean home earnings influence future income prospects?