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27 Year Old Commercial Landscaping Co, North Denver Metro, Over 2M of Signed and Contracted Work Already

ServiceFor Sale in CO

Listing ID: 33436 | Broker Listing ID: BLP019758

Financial & Assets Details

$2,560,000
$418,000
$200,000

About the Business

Yes
Yes
1996
7
$1,600
Yes

Business Description

Commercial Landscaping Company

North Denver Metro Area

Mostly seasonal outdoor landscaping for new large commercial projects

27-Year-Old Business with a great reputation

2022’s revenues were 2.56M with 418K in earnings which was a 16% profit margin. The 2021 revenues were 3M with 470K in earnings. He went from 40 hours a week over the last 26 years to only 4 hours a week in 2022 because of family issues. The revenues and earnings are usually very similar every year until Covid had a negative impact in 2020 and then in 2022 his family issues led to a loss of interest and ultimately the decision to sell. This is all reflected in a below market multiple on earnings creating sales price that is significantly below where it should have been.

Over 70% of his revenue is referral based which is very valuable to a new owner. He also has over 2M dollars of signed and contracted work already for the start of the 2023 season in late April. They only do large jobs. They do all types of high-end landscaping installs including irrigation systems, sod, mulches, plantings, retaining walls, patios, flatwork, pavers, drainage solutions, exterior kitchens and more. Commercial work is usually of the general contractor’s design.

The company uses employees. The main employee is a full-time year-round salesman who handles the sales and estimating, is given a truck to take home, use at work, and knows that this company is for sale and still wants to stay. The other employees are hired just before the season and laid off in the late fall. He pays well and has not had any issue bringing back the employees every year. He has a small office with 2 desks leased inside a virtual office in North Denver where his salesman currently works next to an empty desk while the owner works out of his house. His equipment is on a leased property that is used as a staging area also.

Growth potential: Virtually every job asks his company to do the weekly maintenance also and he has always turned that down. These would be high margin big revenue maintenance contracts which autopay monthly and he turns it down for quality-of-life reasons. He also turns down both residential and smaller commercial jobs for the same reason. He has one main employee, and the owner has been transitioning out of the business and has never wanted to have that much going on for family reasons. He also doesn’t want any work during 3 months of the year. Most landscaping companies do maintenance and snow removal for two reasons: More revenues and a way to hold onto some employees year-round. The business could also provide design services. He has a great website but doesn’t spend money on search engine optimization or pay per click or any other advertising.

This business has 3 months where the only person working is his salesman/estimator. He has little to do over the winter months other than checking in with his salesman allowing the owner to ski, vacation, etc. He makes almost all of his money over less than 10 months of the year making this business even more appealing to buyers.

The buyer will get approximately 200K in current value assets made up of his equipment.

This is an easy business to own and operate. He will also stay and transition the business for as long as the new owner needs him.

Location: The owner can live anywhere in Denver but most of their work has been North Denver

The sales price of 835K is only 1.95 times the earnings of 418K. Keep in mind that the owner of this company is only working hard 7 months a year. He will carry up to 10% of the sales price. 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. It 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 is willing to transition the business and can teach the new owner how to run the business. Industry experience is not necessary. There are no licenses required and his employees 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.

Thank you for your interest,

Jeff C Eisnaugle
Business Broker Colorado, LLC
Direct 303-905-7607
jeff@businessbrokercolorado.com

Growth & Expansion

Virtually every job asks his company to do the weekly maintenance also and he has always turned that down. These would be high margin big revenue maintenance contracts which autopay monthly and he turns it down for quality-of-life reasons. He also turns down both residential and smaller commercial jobs for the same reason. He has one main employee, and the owner has been transitioning out of the business and has never wanted to have that much going on for family reasons. He also doesn’t want any work during 3 months of the year. Most landscaping companies do maintenance and snow removal for two reasons: More revenues and a way to hold onto some employees year-round. The business could also provide design services. He has a great website but doesn’t spend money on search engine optimization or pay per click or any other advertising.

Market Competition:

Over 70% of his revenue is referral based which is very valuable to a new owner. He also has over 2M dollars of signed and contracted work already for the start of the 2023 season in late April. They only do large jobs. They do all types of high-end landscaping installs including irrigation systems, sod, mulches, plantings, retaining walls, patios, flatwork, pavers, drainage solutions, exterior kitchens and more. Commercial work is usually of the general contractor’s design.

Location Details:

He has a small office with 2 desks leased inside a virtual office in North Denver where his salesman currently works next to an empty desk while the owner works out of his house. His equipment is on a leased property that is used as a staging area also.

Support & Training

Will stay as long as needed

Reason for Selling:

Retiring

Listing ID: 33436

Contact Broker

Business Broker Colorado www.businessbrokercolorado.com Listings: 13(303) 905-7607 View My Listings

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