A follower sent in this landscaping business out of Massachusetts, and honestly, this is one of the strongest deals we have seen in a while.
It’s listed at $2.6 million, with $800K in cash flow on $2.1 million in revenue.
After running it through the BizHub calculator with standard SBA terms, you are left with about $417K a year after debt payments.
That is extremely strong cash flow for roughly $269K down.
The first thing that jumps out is the margin profile.
This business operates at about 38% margins, while the landscaping industry averages closer to 27%.
That is not random.
It usually means the owner built strong systems, efficient crews, and disciplined operations over a very long period of time.
The company also has diversified revenue streams across lawn care, snow removal, maintenance, design, and hardscaping, which helps smooth seasonality risk.
And you are getting roughly $500K in equipment included in the deal.
DSCR comes in around 2.15, which gives plenty of cushion on the debt.
And the cash-on-cash return is over 150%, meaning the down payment gets recovered very quickly.
Now yes, you are still paying a premium.
The business is listed at a 3.25x cash flow multiple, compared to an industry average closer to 2.4x.
But unlike most overpriced deals, there is at least a real argument for why this one deserves it.
The biggest thing I would investigate is customer loyalty.
This owner built the company over 40 years and is now retiring.
You need to understand whether customers are loyal to the brand and systems — or loyal to the owner personally.
That transition risk is the entire thesis behind this deal.
The BizHub score lands around an 8.7 out of 10.
Strong margins. Strong cash flow. Strong operating history.
If the customer relationships survive the transition, this could be a very strong acquisition.
But if the owner is the glue holding everything together, the numbers can deteriorate fast.
Read more at the original source →