Listing ID: 80766
Business Overview
This Company was established in the late nineties by the Owners who had a common passion for working in nature. The company was founded on a commitment to sustainability and quality over quantity. This focus has paid dividends over the years as referrals from past and existing clientele bring in a large percentage of new business. The vast existing client base and referral network, along with the website, provides the Company with a wide array of jobs to choose from so the Owners can be selective as to the projects they take on. The breakdown of revenues is approximately 90% residential and 10% commercial. The main services provided include: landscaping (50%), Gardening (30%), Sprinklers (10%) and Turf Care (10%). These services all have individual management and provide overlapping synergistic benefits to the clients and the Company. There is an experienced management team in place that handles day-to-day operations which allows the Owners to work behind the scenes. This structure will make for a seamless transition for a new Owner after the sale.
Financial
- Asking Price: $965,000
- Cash Flow: $310,592
- Gross Revenue: $1,417,016
- EBITDA: N/A
- FF&E: $298,270
- Inventory: $13,000
- Inventory Included: Yes
- Established: N/A
The centralized location has excellent access to all of the Treasure Valley. The space includes a shop, small office and yard which leases for $2,800 per month. A new lease will be negotiated as part of the acquisition, or a new Owner will have the flexibility to relocate.
After decades of successful operations the Owners are ready to retire but will provide negotiable transition assistance after the sale.
Retirement
The ideal buyer would be a similar company interested in a roll-up to gain immediate market share or a Company looking to diversify into another industry. Individual buyers with related industry experience would also be a great fit.
The business is highly successful, profitable and well positioned for a new Owner to capitalize on the rapid growth in the Treasure Valley. New Ownership should continue to thrive while assisting clients by creating and maintaining landscapes throughout the geographic region for many decades to come.
Additional Info
The sale does include inventory valued at $13,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell businesses. Nevertheless, the real factor and the one they tell you might be 2 absolutely different things. For instance, they may claim "I have too many various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might simply be justifications to attempt to hide the reality of transforming demographics, increased competitors, recent reduction in earnings, or a range of various other factors. This is why it is really crucial that you not depend totally on a vendor's word, yet instead, make use of the seller's answer together with your total due diligence. This will paint an extra reasonable image of the business's existing situation.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses take out loans so as to cover points like supplies, payroll, accounts payable, etc. Remember that occasionally this can suggest 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. In addition to debts, there may also be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that should be fulfilled or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location draw in new customers? Often times, operating businesses have repeat clients, which form the core of their daily profits. Certain variables such as brand-new competition sprouting up around the location, roadway building and construction, as well as personnel turnover can impact repeat customers and also negatively influence future profits. One essential point to take into consideration 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 people that see the business often, the better the chance to construct a returning consumer base. A last idea is the general area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? How might the regional mean house earnings influence future income prospects?
