Asking Price: $999,995 Gross Revenue: $880,000Cash Flow: $335,000 (Seller's Discretionary Earnings) EBITDA: Not DisclosedInventory: Not Disclosed included in asking priceFF&E: $700,000 included in asking priceShare this business:
Explanation of Financial Terms
The total asking price of the business for sale.
All income the business received before any cost-of-sales or expenses have been deducted.
Arrived at by "starting with your net (before tax) profit. Then, add back in any payments made to the owner, interest and any depreciation of assets." For example, if the net profit before taxes was $100,000 and the owner was paid $70,000 then the cash flow is $170,000.
Earnings Before Interest, Taxes, Depreciation and Amortization.
The value of the merchandise, raw materials, and finished and unfinished products which have not yet been sold. If there is no inventory price listed then the seller did not provide it.
Furniture, fixtures and equipment that will remain with the business, such as desks, office cubicles, decor elements of a restaurant or showroom, computers and office machines, pots and pans, dishes, display cases, manufacturing equipment, etc., depending on the type of business.
The value of property owned by the business. May be included in the asking price or offered separately. If no real estate value is listed, it was not provided by the seller.
A professional Tree Service providing a full complement of arboreal services to residential and commercial customers for over 40 years, including.
The primary retail market served is the seven county metro area surrounding Minneapolis & St Paul. Through established accounts and call-ins the business sustains a solid sales base that is growing year-to-year.
About the Business
Number of Employees:
The sale includes multiple tree trucks, utility trailers, skid steers, mini-loader, stump grinders, automobiles, and various tools. The land and site office is on lease space. The corporate office is home-based.
The Tree Trimming Services industry provides a range of arboriculture services, including pruning branches, cutting away dead or excess sections, transplanting, fertilizing, tree felling and stump grinding and removal. Over the five years to 2016, demand for tree cutting and other arboriculture services has grown as a result of rising disposable income and a rebound in construction activity - giving the industry 4.6% average growth. In the coming years, broad-based economic growth will lead to more construction activity, wider government budgets and higher levels of disposable income, which are all expected to contribute to industry revenue growth.
Demand is driven partly by construction of new commercial properties and residences and partly by the economy’s overall health. Because management and equipment costs are mainly fixed, the profitability of individual companies depends on demand volume and operations’ efficiency. Small companies can easily compete with big ones, except in providing services to large customers. Big companies operate mainly through local branches or offices that have operations almost identical to those of local companies. The US industry is highly fragmented: the top 50 companies generate about 15% of revenue.
Growth & Expansion:
This Tree Service is well integrated into the industry with a select commercial customer base that has ongoing annual demands for consistent year-to-year sales. It also has good flex capacity to absorb opportunity when storm events occur. The owner has recently positioned the company for expansion in preparation for the intrusion of the Emerald Ash Borer.
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