Summit County Colorado Landscape and Outdoor Maintenance Co, Easy to Run and Grow, Home Based, 90% Recurring Revenue

Financial & Assets Details

About the Business

Business Description

Summit County Colorado Mtn Landscaping & Maintenance Co
This company does seasonal outdoor maintenance for Condo/Townhome HOA’s, Property Management Co’s, and Commercial Buildings
23 Year Old Business in the same location

2022 Revenues were 457K with 262K in Earnings. The 2021 Revenues were 350K with 164K in Earnings a great profit margin. The Revenues and Earnings are usually very similar every year. Covid had a minor impact in 2020. 90% of his revenue is recurring jobs which is very valuable to a new owner. He has a large new customer coming online May 1st and several other smaller ones indicating that the company will continue to grow in 2023. The 520K sales price is just under 2X the 2022 earnings.

They bill monthly based on annually contracted custom maintenance services made up of lawn moving, snow plowing, fertilizing, and irrigation repairs/shut off. They also have add on services including landscaping design, landscape planting, and tree removal. They can also markup specialty projects done by other companies like water features, low voltage lighting, hanging baskets, planting trees, and design services.

This business has 2 off seasons in the Spring and Fall where the owner can take vacations without having to do much work. He doesn’t have to work every day in the Winter either. Only when it snows. He works the equivalent of about 8 months of the year. He works hard during the peak season and not as hard the rest of the year. He does add some new customers in the Spring and most years will hire some employees once they are done working for the ski resorts.

This business does not have a website because he has the amount of work that he wants. There is more work available in their market. All of his new customers are referrals and the work is negotiated and not bid against competition.

The buyer will get approximately 112K in current value assets made up of 1 dump trailer, 3 trucks, two trailers, mowers, skid Steer with various attachments, trimmers, blowers, a thatcher, and various other equipment and tools.

He has almost 100 long-standing and recurring customers.

He has one full time employee and the rest of the part time employees are hired each season as needed saving money.

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. The owner is moving out of the mountains after the sale and full transition. His family is wanting to help family back east which is why he is selling. The new owner can keep it this size or add some marketing and grow the business.

Location: Owner can live anywhere in their area in Summit County, Colorado.

The sales price is 520K which is less than 2 times the 262K earnings. Keep in mind that the owner of this company is only working 8 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 70K in liquidity.

Details:

Growth and Expansion: He has no website and therefore no Google ratings, etc. The new owner should create a website and start soliciting 5 star reviews. The new owner can set up a 2nd location to target some properties in the much higher end resort nearby. These will be bigger and more profitable jobs on average. A new owner can also start working at lower elevations in the late fall or early spring if he/she wants to expand the peak months of the year. The current owner loves the industry and his customers. He is excited to teach the new owner how to run and grow this business. This is one of the easiest businesses I have ever seen to grow by just expanding its coverage area by adding some equipment and workers but without having to spend a lot of money on advertising. He states that the demand is there and it is up to the new owner how big they want to be.

The workers are on payroll now which is very efficient since it is not a year-round business because he pays them hourly when they are working. He has 5 workers each season of which 2 come back from the previous year. He finds employees each year because his season exactly correlates with the ski resort employees. The mountains have a lot of seasonally available employees from early April to early November because that is the exact opposite time frame of the Winter Ski Resorts. This is a big positive for this company. In addition, it is not dependent on the economy and there are more condos and businesses being built in his territory every year. This business has 2 crews that work 2 sites at a time typically.

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 and how to grow it very easily. Industry experience is not necessary. There are no licenses required and he and his employees have the necessary experience. This is not rocket science.

The owner leases a storage space and uses a small parcel of land for storage of the equipment and inventory which is easy to re-locate if desired.
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 a great record for safety (OSHA) as proven by their low workman’s comp MOD rate. 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.

Their market is a great place to live because of its beauty, restaurants, events, and activities. Plus, it is sunny almost all year round in Colorado and there are a lot of very interesting places close by including Denver. Plus, Colorado is the best State in the country to own a business. Colorado is the one of the fastest growing, strongest, and recession proof economies in the United States.

Thank you for your interest,

Jeff C Eisnaugle
Business Broker Colorado, LLC
Direct 303-905-7607
Fax 720-524-6482
jeff@businessbrokercolorado.com

Growth & Expansion

He has no website and therefore no Google ratings, etc. The new owner should create a website and start soliciting 5 star reviews. The new owner can set up a 2nd location to target some properties in the much higher end resort nearby. These will be bigger and more profitable jobs on average. A new owner can also start working at lower elevations in the late fall or early spring if he/she wants to expand the peak months of the year. The current owner loves the industry and his customers. He is excited to teach the new owner how to run and grow this business. This is one of the easiest businesses I have ever seen to grow by just expanding its coverage area by adding some equipment and workers but without having to spend a lot of money on advertising. He states that the demand is there and it is up to the new owner how big they want to be.

Market Competition:

They bill monthly based on annually contracted custom maintenance services made up of lawn moving, snow plowing, fertilizing, and irrigation repairs/shut off. They also have add on services including landscaping design, landscape planting, and tree removal. They can also markup specialty projects done by other companies like water features, low voltage lighting, hanging baskets, planting trees, and design services.

Location Details:

Owner can live anywhere in their area in Summit County, Colorado. The owner leases a storage space and uses a small parcel of land for storage of the equipment and inventory which is easy to re-locate if desired.

Support & Training

Will stay as long as needed

Reason for Selling:

Building a house for his family that will take a lot of time.