Specialized HOA Landscaping Business with Recurring Income
$690,663 Revenue with $196,352 SDE
Specifications
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 Price: $495,000 |
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Revenue: $690,663 (3 Year Avg.) |
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Cash Flow: $196,352 (3 Year Avg.) |
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Location: Santa Clara County, CA |
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Service Area: San Francisco Bay Area |
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 Profit Margin: 28% (3 Year Avg.) |
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 Employees: 6 Full Time Employees |
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Reason for Sale: The Sellers are Retiring |
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Goodwill: 43 Year Reputation |
| Year Established:Â | 1979 |
| Services:Â | 43 years of landscape design, installation and maintenance service provider with focus on multi-family HOA properties across the San Francisco Bay Area. |
| Clients:Â | 100% HOA Properties |
| Lease:Â | Home Based (new owner may need to lease a storage space for equipment) |
| Personnel:Â | 6 FT employees, 1 FT owner and 1 PT owner (admin) |
| FF&EÂ | Estimated value of $73,608 including 3 vehicles, 4 trailers and many small tools. |
Do you want recurring income? If yes, this is the right business for you. This landscaping business has 40+ years of great reputation and a stable and pandemic-proof income. 70% of the revenue is generated from recurring maintenance work and 30% from design, installation and repair work requested outside of the contracted service. All accounts are HOA properties, no residential clients.
Maintenance service is conducted for each client account on a weekly basis, four times a month. The current owners do not do any advertising. All business is built upon their reputation through word of mouth. They are in their retirement age and would like to spend more time with family. For a more motivated owner, with a bit more marketing effort, this is a business with great potential to grow. Fall is the perfect time to get into landscaping business!
This business comes with significant equipment, vehicles, and tools with estimated value of $73,608. There is a highly experienced crew of six employees to provide continued operational strength into the future. The business is pre- approved for SBA loan with 10% down payment for qualified buyers.
Value Proposition
- Over 40 years of good will and reputation
- HOA commercial accounts only
- Long-term customers
- No customer concentration
- 70% revenue from contracted maintenance
- 30 revenue from add-on works
- Opportunity to add more HOA & residential clients
Revenue Breakdown
Financial Highlights
- Listing Price $495,000
- Pre-approved for SBA loan with 10% down payment
- Stable revenue from long-time customer base
- Average profit margin (SDE) at 27%
- COVID and recession resistant
- 70% revenue from recurring maintenance contracts
Cashflow Analysis
Asking Price
The asking price is determined using a cash flow methodology. Cash flow is the sum of net income from the business plus any non-cash expenses, non-recurring items and any seller’s personal expenses. A multi-factor multiplier is applied to the cash flow based on the condition of the business.
For this business, a three-year average cash flow is applied with a multiple of 2.52x. The resulting value is $495,000.
Funding Example
Purchase Price: $495,000
10% Buyer Down Payment
$49,500
Buyer’s Equity
90% Bank Loan
$445,500
10-Yearterm at a rate of 6.5% = Monthly loan payment of $5,058
- Cash Flow (3-Year Average SDE): $196,352
- Annual Payment to Bank: $60,703
- Net Profit (After Expenses and loan payment): $135,649
* Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.