Business Overview

This west suburban greenhouse nursery and garden center started in 70’s and specializes in home-grown annuals, perennials, planters, vegetables, herbs, and more. The target markets are primarily local and high-end residential consumers.

This business is located on a well-travelled highway with access to customers who have plenty of disposable income. They have a very loyal customer base and continually add new customers through word of mouth and their marketing campaigns.

There are 4 people that work year-round including the owner and there are 10 other part-time employees that help as-needed depending on the season.

Financial

  • Asking Price: $550,000
  • Cash Flow: $202,653
  • Gross Revenue: $1,042,631
  • EBITDA: N/A
  • FF&E: $166,915
  • Inventory: $120,000
  • Inventory Included: N/A
  • Established: 1980

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:48,000
  • Lot Size:N/A
  • Total Number of Employees:12
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

8,100 Sq ft barn/office, 40,000 sq ft of Dutch, glass greenhouse. 20 acres.

Is Support & Training Included:

The sellers are committed to a smooth transition and will provide training.

Purpose For Selling:

After 30+ years in the business the owner is considering retirement.

Pros and Cons:

This business primarily competes with big box retailers. Their competitive distinction for this business are their home-grown, quality products, a larger variety of plant material, and the experience of visiting a large, beautiful greenhouse and garden center.

Opportunities and Growth:

Offering some additional products and value-add services to retail consumers. Offering wholesale material to landscapers, property managers, etc. Expanding e-commerce.

Additional Info

The venture was established in 1980, making the business 42 years old.
The deal won't include inventory valued at $120,000*, which ins't included in the suggested price.

The business has 12 employees and is situated in a building with approx. square footage of 48,000 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people choose to sell companies. Nevertheless, the true reason and the one they tell you may be 2 entirely different things. For instance, they might claim "I have way too many other obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might simply be excuses to attempt to hide the reality of changing demographics, increased competition, recent decrease in profits, or a variety of other factors. This is why it is extremely essential that you not depend completely on a vendor's word, but rather, use the seller's solution along with your total due diligence. This will repaint a more sensible image of the business's present scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Many companies borrow money in order to cover points such as inventory, payroll, accounts payable, etc. Remember that occasionally this can suggest that earnings margins are too small. Numerous companies fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that have to be satisfied or might lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area bring in brand-new consumers? Many times, companies have repeat customers, which develop the core of their everyday revenues. Particular variables such as new competition growing up around the area, roadway building, and employee turn over can influence repeat clients and also negatively impact future earnings. One vital thing to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Clearly, the more people that see the business regularly, the better the opportunity to construct a returning client base. A final idea is the general location demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? How might the regional median home earnings impact future income potential?