Last Revised: 9/5/19. Posting #: 250351
Key Words: contractor, landscape, landscaping, construction, masonry, santa clara
Financial Info: Asking price: $499,000. Annual sales approximately $2,000,000+. SDE $230,000+. FF&E replacement cost, over $250K. Approximately $1,000,000 in current & pending contracts. Seller is open to all reasonable offers.
Profile: Profitable SF Peninsula landscape & masonry contractor. 25+ years of sterling reputation serving affluent homeowners - a highly-respected and often-referred name. 10+ employees with years of experience & expertise creating outdoor spaces for some of the world’s most discerning and affluent clientele. Customers return for multiple projects year after year.
Annual sales are approximately $2,000,000+. Seller’s Discretionary Earnings (“SDE”) are $230,000+. The replacement cost of the vehicles and equipment is over $250K. The business includes approximately. $1million in current & pending contracts. The asking price is just $499,000. While the seller has calculated a value almost twice that number, it is priced for an expedited sale at the value of the FF&E plus 1x SDE. The seller is open to all reasonable offers.
A premier profitable thriving landscape and outdoor masonry construction business on the San Francisco Peninsula for over 25 years with a sterling reputation in some of the most affluent zip codes in the United States. A cohesive team of 10+ employees with many years of experience and demonstrable expertise create outdoor environments for some of the most discerning and demanding clientele in the world. Many customers return for multiple projects and enthusiastically recommend this business to their friends, neighbors, and business associates.
All employees are expected to stay. The business manager, who has many years of landscape and construction management experience, coordinates day-to-day operations, finances, purchases, sales, and customer relations. Recently hired, with the understanding that the business is for sale, the manager is looking forward to the growth potential that a new owner will bring to the business and will enthusiastically continue with the business at the new owner’s discretion. In addition, the current owner (and company founder) will be happy to stay on indefinitely in a part-time consulting role to transition the business and facilitate growth.
The business includes a highly-experienced cohesive team of landscapers and masons, an extensive fleet of vehicles and equipment, customer databases, ongoing current projects, and prospective jobs scheduled into the future.
Gross sales for recent years are: 2018: $2,287,450, 2017: $2,151,158, 2016: $1,721,057. Seller’s Discretionary Earnings (“SDE”) are projected for 2019 to be a minimum of $230,000, but probably much higher, based on current and pending projects.
The purchaser of the business will take over, as part of the transaction, over $1,000,000 of contracts, to be verified at time of business transfer.
The physical assets of the business include four trucks, plus various pieces of equipment (including but not limited to excavators, loaders, Bobcats, saws, sanders, sprayers, jack hammers, welding tools, shovels, picks, axes, power washer, wheel barrows, sledge hammers, carpentry tools, trowels, concrete floats, carts, paver cutters, tool chests, mowers, edgers, ladders, roto-tillers, trailers) with a value of approximately $264,000.
Tax returns for 2014 through 2018 will be provided to serious financially-qualified prospects upon submission of an NDA and preliminary discussion with the seller and broker. Complete historical financial data (tax returns, bank statements, A/R and A/P records, payroll statements, etc.), employee records, corporate records, current and pending contracts, detailed equipment list, etc. will be provided during due diligence.
Transaction: The business is being offered for acquisition at an asking price of $499,000, including all listed vehicles and equipment (worth approximately $264,000). All reasonable offers will be considered. (The seller has calculated the value of the business at approximately $895,000 based on a multiple of the SDE, a percentage of the gross revenue, and the value of the FF&E. The price being asked is lower to facilitate an expedited sale.)
It is anticipated that this will be a sale of all the tangible and intangible assets of the corporation, including the very valuable business name; but, not the corporation itself, nor accounts receivable, accounts payable, rent deposits, or cash on hand. This will also include website(s), phone numbers, customer list, supplier contacts, open and pending contracts, employment relationships, etc.—the “goodwill” of the business.
Note: All data on this business are provided by the Seller for information purposes only, and no representations are made by the Broker as to accuracy. The Broker has made No independent verification of the data contained herein. The Broker represents the Seller and does Not represent the Buyer. The Buyer is advised to perform independent due diligence and seek the advice of professionals prior to purchasing the Business.
Broker License # BRE LIC # 01919755
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