Business Overview

Well established lawn care services business for sale in the Des Moines, Iowa market.

25+ years in business.

The following equipment is being sold with the business.
5 trailers
3 trucks
10 mowers
Misc.

Residential and Commercial accounts.

Financial

  • Asking Price: $239,500
  • Cash Flow: $27,886
  • Gross Revenue: $284,880
  • EBITDA: $114,183
  • FF&E: $140,000
  • Inventory: $2,000
  • Inventory Included: Yes
  • Established: 1996

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:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

N/A - Home based (Home Based)

Is Support & Training Included:

Negotiable

Purpose For Selling:

Retirement

Pros and Cons:

28 years in business - commercial and residential accounts

Home Based:

This Business Is Home Based

Additional Info

The business was founded in 1996, making the business 26 years old.
The transaction will include inventory valued at $2,000, which is included in the suggested price.

Why is the Current Owner Selling The Business?

There are all types of reasons people decide to sell companies. However, the real factor vs the one they tell you might be 2 entirely different things. For instance, they might state "I have too many various obligations" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these may just be excuses to attempt to hide the reality of changing demographics, increased competitors, recent reduction in earnings, or an array of various other reasons. This is why it is really important that you not count completely on a vendor's word, however instead, utilize the vendor's response combined with your total due diligence. This will repaint a much more sensible picture of the business's current situation.

Existing Debts and Future Obligations

If the existing business is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of businesses borrow money with the purpose of covering items like supplies, payroll, accounts payable, and so on. Remember that sometimes this can imply that profit margins are too small. Many businesses fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that must be fulfilled or might result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location attract brand-new clients? Most times, companies have repeat customers, which form the core of their daily profits. Specific aspects such as brand-new competitors growing up around the location, road building and construction, and staff turn over can impact repeat consumers and also negatively influence future profits. One vital point to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more people that see the business on a regular basis, the higher the opportunity to construct a returning client base. A final thought is the general area demographics. Is the business situated in a largely inhabited city, or is it located on the outskirts of town? How might the local median household income influence future income prospects?