15 Year Old Seasonal Outdoor Denver Landscaping Company for High End, Large Projects

Financial & Assets Details

About the Business

Business Description

15-year-old Seasonal Outdoor Landscaping Company for high end, large projects.

Company is home based in the West Denver Metro Area but can be anywhere in the Denver Metro Area

This business is under a Letter of Intent until June 23rd 2023. The LOI allows me to continue to market it for backup, but I can’t set any meetings or offers unless it falls through. Jeff

2022 revenues were 817K with 342K in earnings which is a 41% profit margin. The 2021 revenues were 631K with 341K in earnings. He gets over 150-200 leads a year from his website but likes running only one crew for quality of life reasons and only does 10 to 15 jobs a year.

The owner works 25 hours a week during the peak season and 5 or less hours per week during the 5-month off-season. His wife works 12 hours a week during the peak season and 2 hours a week or less during the off season. Their combined hours are always under 40 hours a week. They will both help transition the Buyer and are leaving the company. They have a designer who is an independent contractor and a seasoned crew of very capable workers who have performed most of their work for over 10 years. He has another designer who he can use if his main person is unavailable. Every worker knows that he is interested in selling the company and he plans to oversee a seamless transition for the new owner.

This company has 375K of signed and contracted work as of late March for the start of the 2023 season in mid-April. They only do large jobs. The average size of their projects is more than 100K. The company does high-end “hardscapes” with a focus on custom stonework, large patios, stairs, pathways, boulders, outdoor living areas, fire pits, fireplaces, and retaining walls. The company will also sub out other work at cost plus, including electrical services, plumbing, irrigation, plantings, water features, lighting, and paving. Hardscaping creates a base for easy add on sales that the company manages for additional profits on most projects.

The company’s revenues start with an excellent highly rated website which results in a contact form being filled out or a phone call with the company. The website seniority and excellent SEO provides the owner with more quality leads than he can handle. The company is highly rated on Google. The owner converts these leads to consultations with potential customers and then sets up a meeting with a designer when applicable. The designer creates a detailed design when needed, and the owner creates an estimate(bid) which is then converted to a contract for the customer to sign electronically.

His equipment is estimated to be worth 111K and is made up of a large “Bobcat” skid steer, a Ford F350 DRW, a Large Equipment Trailer, and various pieces of equipment and tools. The assets are currently stored for free which is why I took a negative add back in the excel spreadsheet in the data room for “rent”. This gives the new owner flexibility in where they want to store the equipment post-closing. This also may make the fact that the subs live in Denver more efficient.

Growth potential: This business gets approximately 150-200 leads a season and only averages 12 jobs a year. He only agrees to select projects that fit his minimum profit margin requirement and his teams’ talents. He has chosen to idle the business by keeping only one crew busy and doesn’t do any work for 4 to 5 months of the year. However, the crews are willing to work year-round. The new owner will just need to add crews or choose to work year-round with the main crew to increase revenues and profits. Nothing else needs to be done.

His entire advertising budget of 1,600 dollars per year goes to his website company which generates way more leads than he needs. He makes almost all of his money over 7 to 8 months of the year making this business even more appealing to buyers.

The business has been structured to allow a new owner the prebuilt systems and talent in place, to make an easy transition and learning period. With all logistics in place, the seller can quickly get the new owner trained to operate the business.

Location: The owner can live anywhere in the Denver Metro area but favoring the west side would be most efficient because most of their work has been in and around the West Denver Metro area.

The sales price of 845K is only 2.47 times the earnings of 342K. Keep in mind that the owner of this company is only working 7 to 8 months a year. This will qualify for an SBA loan for all qualified buyers. He will be keeping his cash and accounts receivables and will pay off all debt including the accounts payables so that the business transfers debt-free. He currently has no debt. This is an S-corp so it can be a stock or an asset sale, but it is priced as an asset sale. This business will qualify for an SBA bank loan for a qualified buyer. A bank will only require 10% to 15% matching from a qualified buyer meaning a buyer may qualify to buy this business with only 100K in liquidity.

Details:

The owner will sign a non-compete. He will help to transition the business and will teach the new owner how to run the business and to use his model for accurate estimating. The new owner is open to a longer transition period if the new owner is interested or in need of additional assistance. Industry experience is not necessary. There are no licenses required. His workers already have the necessary experience.

He has a great record of safety, quality, and reliability. The seller will agree to full Reps and Warranties to a solid legal and business standing. They have had no regulatory issues, no lawsuits, and no issues with the city, county, or municipality that they are in. They are also A+ rated with the Better Business Bureau.

Colorado is the 2nd sunniest state making this one of the best places to own a business like this. Plus, Colorado is one of the fastest growing and strongest recession proof economies in the United States.

The sales price is 845K. The business starts getting busy in late April. If you have a serious interest, time is money this time of year.

Please Call or Email for Information: The broker is available at any time to discuss your interest in this offering and can set up a meeting either in person or by phone with the owner(s).

Thank you for your Interest,

Jeff C Eisnaugle
Business Broker Colorado, LLC

Growth & Expansion

This business gets approximately 150-200 leads a season and only averages 12 jobs a year. He only agrees to select projects that fit his minimum profit margin requirement and his teams’ talents. He has chosen to idle the business by keeping only one crew busy and doesn’t do any work for 4 to 5 months of the year. However, the crews are willing to work year-round. The new owner will just need to add crews or choose to work year-round with the main crew to increase revenues and profits. Nothing else needs to be done.

Market Competition:

This company has 375K of signed and contracted work as of late March for the start of the 2023 season in mid-April. They only do large jobs. The average size of their projects is more than 100K. The company does high-end “hardscapes” with a focus on custom stonework, large patios, stairs, pathways, boulders, outdoor living areas, fire pits, fireplaces, and retaining walls. The company will also sub out other work at cost plus, including electrical services, plumbing, irrigation, plantings, water features, lighting, and paving. Hardscaping creates a base for easy add on sales that the company manages for additional profits on most projects.

Location Details:

Company is home based in the West Denver Metro Area but can be anywhere in the Denver Metro Area. The assets are currently stored for free which is why I took a negative add back in the excel spreadsheet in the data room for “rent”. This gives the new owner flexibility in where they want to store the equipment post-closing. This also may make the fact that the subs live in Denver more efficient.

Support & Training

Will support as long as needed

Reason for Selling:

Retiring