Residential Tree & Garden Care Service  •  $600,000

Location: Berkeley
Seller: Dan Chomko
Phone: 415-829-3620, 650-823-0976

Business Summary
Business Summary
Overview: Residential Tree Service, Established In 1983 To Serve East Bay Residences, Is Seeking Someone To Purchase The Business. The Company Has A Well-Earned Reputation For Excellent Service, Being Knowledgeable, Detail Oriented, And Customer Relations. It Was Built By A Sole Proprietor With A Focus On Pruning Ornamental Trees, But Has Branched Out Significantly To Now Include Tree And Shrub Planting, Soil Grade Correction, Cabling, Bracing, Tree Removal, Disease And Insect Diagnosis. Clients Have Been Consistently Satisfied By The Company’s Work Through Four Full-Time And Two Part-Time Employees, And Many Of Them Place Repeat Requests For Various Services.

The Ideal Buyer: Would Be An Existing Larger Tree Care Service Company, A Landscaping Firm Looking To Augment Its Services, Or An Arborist Looking To Run His Own Company.

High Volume Of Customers: The Owner Has An Extensive Database Of Over 1000 Clients, 600 Of Which Have Done Business With Him Since 2002.

Area Served: The Company Services Residences In The Upscale East Bay Neighborhoods, Including Piedmont, Berkeley, Oakland, Emeryville, Lafayette, And Orinda.

Weekday Hours: The Business Visits Customers’ Residences From 8 AM – 6 Pm, Monday Through Friday.

No Overhead: The Owner Has A Home-Based Office, So There Is No Lease To Consider.

Market Outlook
Growth/Expansion: To Grow The Business, The New Owner Should Focus On Establishing A Website, Sending Periodic Newsletters, Networking With Landscape Design Firms And Isa Members, Offering Additional Services, Eliminating Its Estimate Fee, Hiring A Full-Time Receptionist, And Expanding From 4 Day To 5 Day Per Week Service.

Profitability: The Revenue Base Is Stable And Has Been Extremely Profitable With Cash Flows Averaging 63% Of Total Revenues The Last Three Years. In 2007, Seller’s Gross Income Was 411,745, Discretionary Earnings Was 268,232, And Total Cash Flows As Percent Of Revenues Was 65.1%.

About The Sale
Financing: Well-Priced Asset Sale – The Asking Price Of The Business Is 600,000, Which Is A Very Reasonable 2.23x Multiple Of Cash Flow. It Includes All Operating Assets, An Extensive Company Database Of Customer Accounts, 66,000 In 3 Vehicles And Other Equipment, And An Experienced Staff –– A Turnkey Business. The Company Is Pre-Qualified For An SBA Loan.

Support/Training: Seller Is Willing To Work With The New Owners To Ensure A Smooth Transition. This Is Negotiable.

Reason Selling: Owner Founded This Business And Has Run It For 25 Years. He Now Wishes To Pursue Other Opportunities.