Listing ID: 83436
Established in 2015, this business started out as a landscaping firm, but quickly expanded into hardscape and excavating, which is now the bulk of their work.
Centrally located in mid-coast Maine, the company is well positioned to bid on an enormous range of municipal, residential and commercial work.
The range of work includes jobs like roadway guardrails, municipal drainage & ditching, building demolition, roadway grading, paver and retaining wall installation, mobile gravel screening, septic installation, large patio rebuilds, etc.
The business includes a newer main building with office space on the 2nd floor and a heated garage on the first floor, featuring high ceilings and a door large enough to accommodate a full-full size dump truck.
There is also a productive 80-acre gravel pit located in a different town in mid-coast Maine.
As of the date of this listing, there is $1.6M work in progress.
**Confidential Listing, Not located in indicated zip code**
- Asking Price: $330,000
- Cash Flow: $325,000
- Gross Revenue: $1,625,000
- EBITDA: N/A
- FF&E: $500,000
- Inventory: $6,000
- Inventory Included: N/A
- Established: 2015
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:9
- Furniture, Fixtures and Equipment:N/A
Real Estate (two sites) not included in sales price. Inventory not included in sales price. FF&E not included in sales price.
The seller states that there is more landscaping business available then they can handle. The company would benefit from a website and a more robust social media presence.
The venture was started in 2015, making the business 7 years old.
The deal doesn't include inventory valued at $6,000*, which ins't included in the asking price.
The company has 9 FT, 1 PT 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 types of reasons why people choose to sell companies. Nonetheless, the genuine factor vs the one they say to you may be 2 entirely different things. As an example, they might claim "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might just be justifications to attempt to hide the reality of changing demographics, increased competition, recent decrease in revenues, or a range of various other reasons. This is why it is really important that you not rely completely on a seller's word, yet rather, use the vendor's solution along with your general due diligence. This will paint a more reasonable picture of the business's present situation.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies 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 such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can indicate that revenue margins are too small. Lots of organisations fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that should be fulfilled or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area draw in brand-new clients? Often times, businesses have repeat clients, which create the core of their day-to-day profits. Specific elements such as new competition growing up around the area, roadway building and construction, and also staff turnover can affect repeat consumers and negatively influence future incomes. One crucial thing to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business often, the better the opportunity to build a returning customer base. A final thought is the general location demographics. Is the business placed in a largely inhabited city, or is it located on the outskirts of town? How might the local typical household earnings influence future revenue prospects?