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Asking Price: $7,500,000 – Includes Real Estate!Cash Flow: $1,500,000Gross Revenue: $12,000,000FF&E (Included in Asking Price) $1,000,000Real Estate (Included in Price) $1,000,000Inventory (Included in Asking Price) $100,000Working Capital (Included in Price) $700,000 Long Established, very profitable landscaping contracting business provides a steady cash flow and further growth potential.A business of this quality is hard to find with owners entering retirement.$5M IN ANNUAL RE-OCCURING REVENUESExperienced and qualified team in place for a complete turn-key operation.Room to grow – Huge Upside Potential - Could increase sales/profits by expanding and adding new products/services.Consistent sales/profit growth for years, exceptionally well established.Location: Las Vegas, NevadaYear Established: 1998-2000Number of Employees: Approximately 200Real Estate Sites: LeasedRent: $20,000 Per Month Total for all locationsReason for Selling: Retirement and Other Business VenturesTraining & Support: The Seller will provide 40 hours of training and orderly turnover to the new owner over a period of 12 weeks after the close of escrow. Furthermore, the Seller will provide 90 Days of on call support for the Buyer. Additional training/consulting can be made available from the Seller, if required, for an additional fee.
Why we like it
- Earnings Quality: $1.5M cash flow on $12M revenue delivers a clean 12.5% margin with $5M in recurring revenue providing predictable baseline cash generation. The 200-employee operation suggests systematized processes beyond owner dependency, and 25+ years of consistent growth indicates proven market fit and operational discipline.
- Durability & Moat: Commercial landscaping contracts create natural switching costs and recurring revenue streams that are difficult to disrupt. The scale advantage of 200 employees allows for larger contract wins that smaller competitors cannot handle, while established relationships in Las Vegas commercial real estate provide defensive positioning.
- Market Tailwinds: Las Vegas continues robust commercial and residential development with population growth driving ongoing landscaping demand. Water management and sustainable landscaping requirements create opportunities for higher-margin specialty services, while commercial property maintenance remains recession-resistant.
- Operator Advantage: The retiring seller provides structured transition support with 40 hours of training and 12-week turnover period. The $1M in included real estate and equipment reduces capital requirements, while the established 200-person team enables immediate operational continuity without key person risk.
How to improve it
- Margin Expansion: Audit the service mix to identify higher-margin opportunities like irrigation system installation, landscape design, or specialized maintenance contracts. Implement value-based pricing for premium services while maintaining competitive rates on commodity maintenance work.
- Technology Integration: Deploy route optimization software and GPS tracking to reduce fuel costs and improve crew efficiency. Implement customer portal for service requests and billing to reduce administrative overhead and improve customer experience.
- Recurring Revenue Growth: Systematically convert one-time projects into ongoing maintenance contracts by offering bundled services. Target property management companies and commercial developers for multi-year maintenance agreements that provide predictable cash flows.
- Geographic Expansion: Leverage the established operational systems to expand into adjacent Nevada markets like Reno or Henderson. The 200-employee infrastructure provides the management depth needed to support multi-location operations.
- Service Line Extensions: Add complementary services like tree care, pest control, or snow removal that leverage existing customer relationships and seasonal workforce. These additions can increase customer lifetime value and reduce seasonal revenue fluctuations.
- Acquisition Strategy: Use the strong cash flow and operational platform to acquire smaller competitors in Las Vegas. Roll-up strategies work well in fragmented landscaping markets and can quickly add both revenue and recurring contracts.
- Equipment Optimization: Analyze the $1M equipment package for modernization opportunities that improve productivity per employee. Newer equipment often reduces maintenance costs and fuel consumption while increasing job completion speed.
- Customer Segmentation: Develop specialized service packages for different customer types (retail centers, office complexes, HOAs) to improve pricing power and service delivery efficiency.
Diligence notes
- Contract Analysis: Review the $5M in recurring contracts for length, pricing escalation clauses, and termination provisions. Verify customer concentration risk and understand renewal patterns, as commercial landscaping contracts can be lost to competitive bidding processes.
- Labor Verification: With 200 employees, carefully audit payroll taxes, workers compensation claims, and immigration compliance. Landscaping businesses face high employee turnover and potential labor law violations that can create significant liabilities.
- Equipment Assessment: The $1M equipment valuation needs professional appraisal to verify condition and remaining useful life. Commercial landscaping equipment faces heavy wear, and replacement costs can significantly impact future cash flows.
- Seasonal Cash Flow: Request monthly cash flow data to understand seasonal patterns and working capital requirements. Las Vegas landscaping has less seasonality than northern markets, but understanding monthly variations is critical for cash management planning.