Listing ID: 80622
Business Overview
Consistently profitable.
Very well established with many years of successful operations
Annual and multiple year contracts for 80% +/- of total revenue.
Consistent labor force
Opportunities for profitable growth
No difficulty with collection of billings
2020 capital purchases over $100k should minimize future capital expenditures
Requires one manager and one part-time office worker
Buyer/manager with landscape sub-contractor license necessary to maximize profit
“Essential” company as determined by government
Financial
- Asking Price: $1,200,000
- Cash Flow: $486,000
- Gross Revenue: $1,081,000
- EBITDA: N/A
- FF&E: $200,000
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:200
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
Current office and parking area will not be available to buyer. Seller estimates that a buyer should have an office/work space of about 200 square feet and 1,500 sq.ft. for the vehicles/trailer storage.
Seller will assist Buyer in the initial period but not on a continuing basis.
My wife and I, after many, years in the business, have chosen to fully retire.
Our competition are a few well-known companies that provide, as we do, a very high level of service and finished product.
To grow, look for government work and jump through all of their hoops to qualify for bidding. Begin active sales and marketing campaign to target profitable work.
Additional Info
The company has 7 employees and is situated in a building with estimated square footage of 200 sq ft.
The building is leased by the company for $1,150 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell businesses. However, the true reason vs the one they tell you might be 2 absolutely different things. As an example, they might state "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these may just be reasons to try to hide the reality of transforming demographics, increased competitors, current reduction in revenues, or a variety of various other factors. This is why it is really crucial that you not depend totally on a vendor's word, however rather, make use of the vendor's answer in conjunction with your overall due diligence. This will repaint a more reasonable picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many operating businesses take out loans so as to cover items like inventory, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can indicate that revenue margins are too tight. Lots of organisations come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that have to be fulfilled or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location draw in new customers? Often times, businesses have repeat consumers, which develop the core of their daily profits. Specific elements such as new competition growing up around the area, roadway building and construction, as well as staff turn over can affect repeat consumers and negatively affect future revenues. One crucial point to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business on a regular basis, the greater the opportunity to build a returning client base. A last thought is the general area demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the neighborhood mean home income influence future revenue prospects?
