Dallas County, TX, US
House & Garden
|Asking Price:$575,000||Revenue:$691,984||Cash Flow:$167,244||Founded:2012|
5-star non-seasonal landscaping company servicing residential and commercial properties in the Dallas area. They boast consistent, steadily increasing revenue every year, split 90/10 between landscaping and construction, an average gross profit margin of 46%, a low risk factor, and sterling reputation. Company is very well positioned to expand under more ambitious ownership, and an expansion plan already exists, though not implemented, because current owner is very comfortable with the balance of hours and enjoyable projects.
This is a specialized landscaping and hardscaping company, not “a lawn service that also has a shovel and a pickup.” They do not do lawn services like mow and weed, they do not do house cleaning, pest control, tree-trimming, leaf-bagging, etc. The company only focuses on landscaping, irrigation, and hardscaping and keeps booked six weeks in advance, year-round, and are the most highly-respected landscapers in the Dallas area for their knowledge, skill, and quality.
Additionally, financial documentation has been spotless, business is entirely capable of running without current owner, clients are booked solid six weeks ahead by design, and expansion opportunities abound for a buyer looking to bring the company into a much higher value range through additional services offered.
The ideal buyer for this company will fall into any of these categories:
An existing landscaping company looking to expand their share
A lawn-services company looking to break into the landscaping market
A construction company that wants to horizontally expand to landscaping its lots
A high-end developer with a need for experienced landscaping staff and clientele
An individual looking for a great head-start on their own landscaping business
An investor looking for a stable, expandable return on investment
CONCERNS AND REMEDIATIONS
Owners will not offer seller financing:
Business Acquisitions, LLC will assist the Buyer with locating funding if needed.
Business is not currently expanding:
Deliberate choice by comfortable owner. A detailed expansion plan exists, however.
Employees paid higher than average wage:
Owner found it to be a better business strategy than replacing skilled workers.
Loss of intellectual capital upon transition:
Owner has been diligent about training employees, in applicable skills. Most can now provide a similar knowledge base. Also, owner is willing to occasionally provide Agricultural and Horticultural consulting as needed.
Owner is perfectly happy with the business as is. It is at its peak, profitable, great team, and they only have to accept the jobs they want, and the hours are light at 45/week. He would like to retire with things on a high, rather than spend his golden years working to expand the company doing jobs he'd rather not do.
All tools, equipment, trucks, trailers, etc, are included in the asking price. There is no customer-facing office, but there is a storage facility to house the vehicles and equipment. There is no constant inventory, supplies and materials are ordered job-by-job
No seller financing available, though Business Acquisitions, LLC., will be happy to assist serious buyers in locating funding.
Very little real competition to this business. While there are a lot of lawn service companies that include landscaping as a service, there are only a handful that specialize in landscaping, and this business is one of the most highly respected in the nation (Yes, nation) for their expertise, focus, results, and price.
Obvious pros to expansion include additional revenue streams. A detailed expansion plan already exists for the company if the new owner chooses to use it, or they can use their own. The only cons are, of course, expansion costs, and current owner advises a conservative scale-up to avoid being overwhelmed by the demand for services or the decline in quality of existing services.
Seller is willing to provide training, ramp up, introductions, etc, to Buyer. However, should be largely unnecessary as crew is already very knowledgeable and experienced. Seller is also willing to provide agricultural, horticultural, and arborist consulting on an as-needed basis.
Revenue Multiple: 0.83X
EBITDA Multiple: 4.84X
SDE/Cash Flow Multiple: 3.44X