Listing ID: 80384

Business Overview

This 14 year old landscape and lawn business services high end homes in Cobb and Cherokee County. A large percentage of the revenue is recurring service work about 80%. There is very little customer turnover somewhere around 7%. Sales have increased every year since inception. Lots of potential for increased sales and price increases.

Financial

  • Asking Price: $495,000
  • Cash Flow: $210,000
  • Gross Revenue: $560,000
  • EBITDA: N/A
  • FF&E: $25,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2007

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:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business leases space at a local storage yard and performs office functions from their home. The rent is $250 a month and there is no lease, it is month to month. (Home Based)

Is Support & Training Included:

The owner is willing to provide up to 21 days for transition upon sale of the business.

Purpose For Selling:

The seller is considering new opportunities.

Pros and Cons:

YTD sales are projected to be over $600,000. The business has a good longtime group of core hardworking crews. Revenue is generated in a very dense geographic area which increases profitability. Approximately 80% of the revenue is recurring and the split is 85% residential and 15% commercial.

Opportunities and Growth:

The business does not push for associated sales like hard scapes, sod, irrigation, drainage, tree trimming, etc. With concentrated effort the buyer could increase sales in those areas.

Home Based:

This Business Is Home Based

Additional Info

The company was founded in 2007, making the business 15 years old.

The business has 2 employees and resides in a building with estimated square footage of N/A sq ft.
The real estate is leased by the business for $250 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals resolve to sell companies. Nonetheless, the real factor and the one they say to you may be 2 completely different things. For instance, they may claim "I have a lot of various commitments" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might simply be justifications to attempt to conceal the reality of altering demographics, increased competition, current decrease in revenues, or a variety of various other factors. This is why it is very essential that you not rely entirely on a vendor's word, however rather, utilize the seller's answer together with your total due diligence. This will repaint a more realistic picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Many businesses finance loans with the purpose of covering things like stock, payroll, accounts payable, etc. Bear in mind that occasionally this can indicate that earnings margins are too tight. Lots of organisations fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that have to be fulfilled or may lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area bring in new customers? Many times, companies have repeat customers, which create the core of their day-to-day earnings. Particular elements such as new competition sprouting up around the location, road building and construction, and also employee turnover can influence repeat clients and also adversely influence future incomes. One crucial point to consider is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business regularly, the greater the chance to construct a returning consumer base. A last idea is the basic area demographics. Is the business situated in a largely inhabited city, or is it situated on the outskirts of town? Just how might the regional median household earnings impact future revenue potential?