We list for sale some of the best lawn and landscape businesses in the United States. We can definitely let you know when new lawn and landscape businesses come up for sale. In fact, you can register to be a “Lawn Boss Insider” so that you get notified of lawn and landscape businesses that come up for sale before they even hit the market. To register to be an “Insider”, please click here.

Jim specializes in selling lawn and landscape businesses around the United States. The best owners of these types of businesses trust him because he has a reputation for being selective about the businesses he takes to the market. This ensures that buyers have access to solid listings that they would want to consider. Jim has a set of criteria that he goes by when selecting businesses for sale. In general terms, the business usually needs to be doing at least $750,000 in gross sales, been in business 5 or more years, has good books and records and seems like an overall good business. It is also important that the seller is likeable and trustworthy and is realistic about the sale price.

While starting a lawn or landscape business might seem cheaper initially, over the long haul purchasing an existing business could be more cost effective. Starting a business might require an infusion of cash on a regular basis until the business can support itself. This could take months or even years; many businesses never turn a profit and are forced to go out of business. When purchasing an existing lawn or landscape business you should start receiving a paycheck and/or a dividend on the business immediately. Over a period of time, purchasing an existing lawn or landscape business can be much less expensive and have a much better return on your money, not to mention a large reduction of risk.

When acquiring a lawn or landscape business, buyers take different approaches to the types of professionals they use and in what capacity. Some like to “do it on their own” without any professional assistance. However, it is recommended that you use the assistance of an attorney to review such legal documents as purchase contracts, leases, and the closing documents and other contracts. It is also suggested that you use a CPA/accountant that specializes in financial due diligence to verify that the business is performing financially as the seller claims. Depending on what your circumstances are, you may also want to speak to a loan officer, business appraiser or a commercial building appraiser among others. SBA 7a loans can be used to buy, expand, or refinance debt on a landscaping business.

While the seller ultimately determines the asking price, we work with him to determine the price at which the business will most likely sell. We use financial information provided by the seller to “recast” the financials to determine what a buyer would be making from the business if it continues to perform in the same manner as the seller states it has operated. This process includes the net profit of the business plus owner’s salary (assuming a single buyer will work the business full-time), any loan payments seller is paying (businesses are usually sold free and clear, seller paying off any loans the business may have at the time of closing), depreciation, amortization expense, any non-essential business expenses and any benefits the company is paying on behalf of a seller such as health insurance. This recasting of the financials results in what’s called an “adjusted net”. Next, we’ll compare the adjusted net for this business with that of similar ones in the same industry that have been sold, using gross sales figures and discretionary earnings to arrive at a “Broker’s Opinion of Value” (BOV). The BOV that we provide to sellers may or may not be the price the seller decides to ask. In the end, the final price will be determined by how much the seller is willing to sell his business for and how much a buyer is willing to pay for it. This is called an “arm’s length transaction,” which ensures that each party in the deal is acting in his own self-interest and is not subject to pressure or duress.

There are several ways to finance the acquisition of a lawn and landscape business. One of the most popular ways is through an SBA 7(a) loan. This type of loan is backed by the Small Business Administration and can be used to purchase a business. Another option is a HELOC (Home Equity Line of Credit), which allows you to borrow against the equity in your home. A 401k rollover is another option that allows you to use your retirement savings to purchase a business. Owner financing is also an option where the seller finances part or all of the purchase price. Finally, private lending can be used to finance the acquisition of a lawn and landscape business.

We can point you in the right direction for more information on these financing options.

When purchasing a lawn and landscape business, the asking price typically includes all the assets of the business such as furniture, fixtures, equipment, inventory, and goodwill. However, money in bank accounts, deposit accounts, and accounts payable are usually not included in the asking price. Accounts receivables may or may not be included in the sale depending on the circumstances. It is important to work with a business broker to determine what assets are included in the sale and what assets are not based on how the business was valued.

It is a common misconception that if a lawn and landscape business is up for sale, it must be losing money. While this is often the case, there are many reasons why a seller may choose to sell their business. It is important to analyze the full picture of a business and understand the owner’s story before making any judgments. The most common reasons a seller lists their business for sale are health, retirement, marital or family issues, relocation, other business interests, or simply fatigue and/or burnout. Every seller has their own motivation to sell their business.

Due diligence is an important part of buying a lawn and landscape business. It involves verifying income and financial statements provided to the buyer. This is essential in making sure the buyer and seller are clear on what items are transferred in the transaction, as nobody wants to be surprised at or after the closing. Parties often have their CPA’s participate in the due diligence process, especially once an offer has been accepted. After an Offer to Purchase, or Letter of Intent (LOI) has been accepted, the major part of the due diligence process will begin. Due diligence includes reviewing of the books and records of the business, counting inventory, surveying equipment, and many other items. While there are standardized lists of the items that are usually discussed in due diligence, this is the buyer’s opportunity to evaluate ANY area of the business to ensure a high level of comfort about the overall picture of the business prior to closing. All purchase contracts submitted by our business brokers will protect the buyer with a contingency in which if the buyer is not happy with the results of the due diligence, that his/her escrow deposit monies are fully protected and there will be no financial burdens on behalf of the buyer, allowing the buyer to back out of the contract.