Commercial Landscape Maintenance Company in Southern California

This Southern California commercial landscape maintenance company, established more than 25 years ago, has shown consistent growth and profitability over its lifetime. Financial information reported here is an average of the prior 3 years. 2020 was the most profitable year ever with cash flow of $1.4M. Sales for 2021 are on track to match or exceed 2020. Customers are all commercial real estate owners or multi-residential apartments with minimal concentration risk. No HOA or individual residential accounts. Revenue is approximately 65% ongoing maintenance and 35% is new installation and renovations. This is an extremely competitive market so significant growth is difficult without acquisition. However, the owner has never formally marketed the business, so organic growth is possible. Sales have been relatively unaffected by COVID-19 and the company has no PPP loans. The rented facility includes a warehouse, small office and an enclosed yard area. The optimal buyer will be a financially strong company looking to grow and take advantage of several synergistic value generators. A C27 contractor’s license and preferably a pest control license are required to operate the business. Ten-year SBA financing should be available to a qualified buyer. Buyer should also understand that they will be liable for sales taxes assessed on the fixed assets included in the purchases. For the protection of the seller, a Buyer Confidentiality Agreement will be required from interested parties before more details are provided and a buyer disclosure statement. Location: California Year Established: 0 Real Estate: Leased Building Sq. Ft.: 4,700 Rent: $3,041.67 Per Month Facilities: Approximately 1,500 sq. ft. total. About 200sq. ft. of office space. Approximately 3,200 sq. ft. of yard area for trucks and trailers. The business has rented the space from year to year for over 15 years. Market Outlook/ Competition: Highly competitive market with significant growth being difficult without acquisition. Sales and cash flow have been trending up since 2017 and there has been no discernable impact from COVID. Sales for 2021 are on pace to match or exceed 2020. Growth & Expansion: The best scenario is for an existing company to purchase the operation and enjoy synergistic benefits beyond the cash flow shown here. A non-business purchaser, should be well financed and experienced. The operations require active management.