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Specialized HOA Landscaping Business with Recurring Income

Specialized HOA Landscaping Business with Recurring Income

Specifications

Price: $495,000Revenue: $690,663 (3 Year Avg.)Cash Flow: $196,352 (3 Year Avg.)
Location: Santa Clara County, CAService Area: San Francisco Bay AreaProfit Margin: 28% (3 Year Avg.)
Employees: 6 Full Time EmployeesReason for Sale: The Sellers are RetiringGoodwill: 43 Year Reputation

Year Established:1979
Services:43 years of landscape design, installation and maintenance service provider with focus on multi-family HOA properties across the San Francisco Bay Area.
Clients:100% HOA Properties
Lease:Home Based (new owner may need to lease a storage space for equipment)
Personnel:6 FT employees, 1 FT owner and 1 PT owner (admin)
FF&EEstimated value of $73,608 including 3 vehicles, 4 trailers and many small tools.

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.

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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.

NIGHT CLUB AND BAR

A well established, turn-key Bar and Nightclub open until 2:00 a.m. with a full liquor license, great
location, private events, and live music on Friday, Saturday and Sunday.
This is an opportunity to own a fully operational business and real estate with seller financing.
Establishment is 2,828 sq ft on a 7,405 sq ft lot and real estate, furniture, fixtures, and equipment are
included in the asking price. The seller is ready to retire and this is a great acquisition opportunity,
because they are willing to stay on and train the new operator until they are acclimated to the business.
This is a profitable operation just waiting for a new operator to take over. Act now and take advantage of
this unique opportunity!

Asking Price   $3,300.000
SDE  $156,000
Gross revenue  $ 700,000
Inventory   $20,000
Establish   2018
Seller Financing Available  Yes
Location:   San Jose
Lot Space   2,828
Lot Size   7,405 Square Feet
Employees:  6
Facilities:  Fixtures, liquor license and entertainment license, inventory.
Reason for Selling   Retirement
Growth & Expansion  
Support & Training  
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