Tree Service

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Profitable & Growing Service Business!
Asking Price:
$850,000

Gross Revenue:
$880,000
Cash Flow:
$335,000
(Seller's Discretionary Earnings)

EBITDA:
 Not Disclosed
Inventory:
 Not Disclosed
included in asking price

FF&E:
$700,000
included in asking price

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Business Description

A professional Tree Service providing a full complement of arboreal services to residential and commercial customers for over 40 years, including.

• Pruning (Trees & Shrubs)
• Thinning
• Elevating
• Crown Reduction
• Tree Removal
• Stump grinding
• Stump Removal
• Storm Damage Clean-up

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:
6
Relocatable:
Yes
Real Estate:
Leased
Building Sq. Ft.:
1
Lease Amount/Mo.:
$1.00
Facilities:
The sale includes multiple tree trucks, utility trailers, skid steers, mini-loader, stump grinder, automobiles, and various tools. The land and site office is on lease space. The corporate office is home-based.
Market Outlook/
Competition:
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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About the Sale

Reason For Selling:
Other Opportunities
Training/Support:
Seller will provide 2-4 weeks of support and training for the business transition. Additional training and consultation available for discussion.

Listing Info

ID:
1481716
Ad Detail Views:
1323

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Business Listed by

Brian Tjaden

Compass Brokerage & Realty Services

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U.S. Census Data for Anoka and Hennepin Counties, MN
Age

Gender

Ethnicity

Source: Decennial Census (2010), United States Census Bureau.

This product uses the Census Bureau Data API but is not endorsed or certified by the Census Bureau.

U.S. Community Survey Data for Anoka and Hennepin Counties, MN
Income

Education

Source: American Community Survey (2010-2014), United States Census Bureau.

This product uses the Census Bureau Data API but is not endorsed or certified by the Census Bureau.


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