Business Overview

The owners of this well-established residential landscaping company are looking to transition the business to the right buyer ahead of retirement. Based in a major Midwest metro area, the business has experienced stable sales and profitability for many years, building on more than 30 years of history in the market and industry. The current owner is willing to stay on after the sale in a sales role for up to three years.
Average revenue for 2018-2021 is more than $2.6 – $3 million with cash flow between $250,000-$300,000. The company currently employees four division managers and a GM in addition to the 20-25 staff members. To ensure the business is transitioned to a buyer who will continue to care for the long-term staff and client base, the sale is contingent upon the seller approving buyers before releasing confidential data about the company. As a commitment to the future success of the business, the seller is willing to, and interested in, continuing to work in the business after selling – focused on helping a new owner grow the business in a sales role, which is the seller’s passion and a key skillset.

Business is run by an experienced management team in place who run the day-to-day operations, allowing a new owner to focus on growth and “big picture” opportunities or to cut labor costs by managing the business personally. The mix of revenue shows a healthy balance between the core business – residential landscape/hardscape construction projects – and other recurring revenue streams from a strategic relationship with a local utility as well as a book of business with commercial accounts that involve in-season grounds maintenance and off-season revenue from winter weather.

Current ownership has strong client relationships and a stellar reputation that can be effectively transitioned to new ownership. After 30 years of building and operating the business, the owners have built a strong operating infrastructure for the business and is looking forward to providing as much guidance as desired by the right buyer to pursue growth and continue building the business for decades to come. Inquire today for more information on this opportunity.

2021 Revenues = $2,640,000
2021 Seller’s Discretionary Earnings (overstaffed)= $270,000+
Geolocate: Kansas City, MO

Financial

  • Asking Price: $1,290,000
  • Cash Flow: $270,000
  • Gross Revenue: $2,650,000
  • EBITDA: N/A
  • FF&E: $500,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1991

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:28
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

perfectly laid out building and secure lot for all equipment with room to grow. Easy Location provides access to the entire city.

Is Support & Training Included:

Owner willing to stay on for up to three years as a salesperson. Owner will stay through a transition, so buyer is fully trained

Purpose For Selling:

Retirement

Pros and Cons:

This well-established business has an impeccable reputation that makes their services the first choice of commercial customers

Opportunities and Growth:

Current owners are not expanding the business because of their desire to retire.

Additional Info

The venture was started in 1991, making the business 31 years old.

The company has 28 employees and is situated in a building with disclosed square footage of N/A sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals choose to sell operating businesses. Nevertheless, the genuine reason and the one they tell you might be 2 entirely different things. For instance, they may say "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons stand. However, for some, these may simply be reasons to try to hide the reality of altering demographics, increased competition, current reduction in revenues, or a range of other reasons. This is why it is extremely essential that you not count completely on a vendor's word, but instead, utilize the seller's solution combined with your total due diligence. This will paint a more sensible picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of businesses take out loans in order to cover items such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can imply that profit margins are too tight. Numerous businesses fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that need to be satisfied or may cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area attract new consumers? Many times, operating businesses have repeat consumers, which form the core of their everyday profits. Particular elements such as new competition growing up around the area, roadway building and construction, and personnel turnover can impact repeat customers as well as adversely impact future earnings. One essential thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Certainly, the more people that see the business often, the greater the opportunity to build a returning consumer base. A last idea is the basic location demographics. Is the business situated in a densely populated city, or is it located on the outskirts of town? Just how might the local median home income influence future income potential?