List Price: $1,550,000
Owner Profit/Cash Flow
Growth/Sales Trends:Gross Sales and Seller Cash Flow
increased by 20% or more from 2012 to 2015
Profit Margin: 51%
With the 2015 Cash Flow of $440,255, a Buyer could realize a $202,684 Net Operating Income after annual debt service payments and all expenses and a Return on investment on the $232,500 down payment of 87% in the first year of operation.
51% Profit Margin and $481,000 in hard assets make this company very attractive. Well-established since 1984 this commercial and residential lawn company has been serving Omaha and surrounding areas. Services provided to approximately 450 active weekly accounts include mowing, landscaping, snow removal, tree trimming and sprinkler repair. Many accounts are commercial clients, which include subdivision and HOA. Owner works 6-8 hours per week bidding new projects, with little oversight needed for these long-term employees. The staff of 3 fulltime mowers, 3 full time landscapers and 1 part time Office Administrator has long tenure.
Low overhead of $300/month for storage units. Current profit margins are 51% with an increase in Gross Sales and Cash Flow of over 20% from 2013 to 2014. The current Owner has chosen not to take on many additional clients at this time, but a Buyer could elect to increase the client base and increase the sales. Seller was in a car accident which is the reason for the sale. He will train a new Owner for 120 days and is willing to stay on as a consultant post transition if desired.
Based on the Funding Example above and with 2015 Cash Flow of $440,255, a Buyer could realize a $211,880 Net Operating Income after annual debt service payments and all expenses.
Assets Included in Purchase $481,019
Equipment: $244,425 in mowers, blowers, snow plows,
tillers, dump boxes and other tools
Vehicles: $166,594 in trucks (6) and trailers (4)
A/R: $70,000 (Net 30 days)
*Amounts may vary
Location and Service Area: Omaha metro area
Client Information:450 active weekly accounts
Services Provided:Include mowing, landscaping, snow
removal, tree trimming and sprinkler repair
Lease: Very low rent on storage units – less than $300/mo
Reason for Selling:Auto Accident
Employees: 6 FT (3 Mowers, 3 Landscapers), 1 PT
Office Administrator responsible for billing
Staff has long tenure.
Hours: Vary by season
Seller Training Period: Seller will train, introduce Buyer to
clients and provide transition support for 120 days. After
120 days Seller is willing to stay on as a consultant post
transition if desired by Buyer.
Growth Opportunities: Owner has chosen not to take on
many new clients at this time, but a Buyer could pursue
Current Owner’s Responsibilities: Works 6-8 hours per week
on bidding projects (as needed), taking customer calls, in-field
work less than 5-10%
Purchase Price: $1,550,000
15% Buyer Down Payment: $232,500
15% Seller Financing: $232,500
70% Bank Loan: $1,085,000
For a detailed financial package, please contact Cortney Sells or one of The Firm Business Brokerage’s professionals at 402.998.5288 or email Confidential@TheFirmB2B.com.