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Name:
#2118 Landscape, Irrigation, and Erosion Control Business
Categories:
Service
Region:
Rocky Mountain Region
Industries:
Environmental; Service
Segments:
Service
Asking Price:
$5,495,000  
Down Payment:
$1,500,000  
Revenue:
$5,733,205  
Adj. Profit:
$1,430,539  
Adj. Profit Type:
Seller's Discretionary Earnings  

LANDSCAPE, IRRIGATION, AND EROSION CONTROL BUSINESS – Established more than 20 years ago, this company offers comprehensive environmental solutions, erosion control, perimeter control, and revegetation solutions for government entities, commercial developers, and the mining, oil, and gas industries. It also specializes in storm water management and landscape and irrigation projects, and has several on-going maintenance agreements, including snow removal services in the winter. Most of the company’s work orders come from general contractors representing government agencies in the Rocky Mountain Region. Contact Lynn Lage, lynn@fbb.com. BUSINESS SUMMARY

Notes of Explanation:
  1. TBS = "To Be Suggested"
  2. Seller's Adjusted Profit

The Seller's Adjusted Profit is a calculation showing the cash flow generated by the Business for the most recent tax year, unless otherwise indicated, by adding back to the net profit those costs that are discretionary to the Seller. These costs could include the owner's salary and benefits, interest paid on the seller's notes/debts that are not assumed by the buyer, non-cash expenses such as depreciation (in appropriate situations) and amortization, and certain non-recurring or unusual expenses. Details of the Adjusted Profit calculations are available in each presentation package and in our files.

"An Economic Basket"

Another way of viewing the Seller's Adjusted Profit is as the historic economic basket of benefits available to the new owner so he can:

  1. Pay himself an appropriate wage commensurate with the skill required to manage the business.
  2. Service any debt incurred to purchase the business.
  3. Receive a reasonable rate of return on the down payment invested. (The appropriate rate of return depends on market conditions and the size of the business. For smaller transactions the rate of return on investment is not usually a significant factor in the valuation.