North View Landscaping Design & Construction

 

Price: $595,000

Normalized Cash Flow: $200,000

What they do – the short version:

  • NorthView Landscaping is a well established high end Calgary residential landscape design / build company.
  • Their winter season is spent in design and sales
  • They do their own design work and use sub contractors for new construction
  • The firm has served Calgary customers for over 20 years.

Summary

NorthView Landscaping is a well established and high-end Calgary residential landscape design / build company. They have successfully been serving clients for over 20 years.

Three years of full financials are available for qualified buyers.

This will be a share sale.

Operations

For over 20 years, this firm maintained one crew of 3 to 4 workers, working one project at a time. This allowed for focused, efficient and client centered operations which proved to be a highly successful strategy.

NorthView has always found it more efficient to rent equipment rather than own and maintain their own.

In 2018, the firm decided to switch over to using sub-trades only rather than maintaining their own crew as an initial shift toward semi retirement.

The firm maintains a one to two-year warranty on all planting, other materials, and workmanship. The firm’s high level of workmanship has meant that this obligation has never resulted in exceptional costs.

The two owners each put in about a thousand hours each year. While the majority of work happens during the landscape season, designing and selling continues throughout the year.

Customers

Their customers come from current client referrals, neighbours of clients, builder and industry referrals, their own web site, and the Houzz website.

Some customers are repeat clients in the sense they split up their landscaping needs over several years. As well, many clients return to have the firm do their landscaping again when they purchase new homes with new landscaping needs. Several have had up to four homes landscaped by the firm.

Further Information

Three years of financial statements is available for qualified buyers.

Management  Discussion

Q. Why you are selling?

A. We are moving towards retirement.

Q. In your words, what does the firm do?

A. Create beautiful and functional outdoor living spaces for our clients.

Q. What functions does the owner perform? What talents will the new owner have to replace when you leave?

A. One owner does the designing, selling, and overseeing of the projects. This person would agree to stay on as an employee / consultant doing the design work and selling until the new owner is ready to take on those tasks.
The other owner does the firm’s administrative functions from office management to bookkeeping.

Q. How long will you stay after the sale to help in the transition?

A. A ‘reasonable’ amount of time can be negotiated. We would also be happy to have regular meetings to review operations, answer questions etc.

Q. Can you estimate what it would cost for a competitor to start up?

A. Many people believe they can start a landscape business for next to no cost and to some extent this may be true. But the term ‘landscape’ encompasses many different things.

For somebody to establish a business that we would consider to be a ‘competitor’ of ours takes many years of experience and proving themselves in the industry and to their customers.

Q. Will you agree to a non-competition clause?

A. Yes.

Q. Who should buy this business?

A. Someone with a knowledge of the industry who would be capable of maintaining the high standards we have established over the years.

Q. Where do you think the business has a competitive advantage?

A. Years of experience, quality workmanship, and placing a high value on client satisfaction.
We also have well established relationships with quality sub trades such as carpentry, irrigation, masonry, hard landscapers, soft landscapers, concrete etc.
We have always had the ability to run a very lean, cost effective operation. This has brought a steady growth in revenues and profit throughout the years.

Q. Is there anything else you think a potential buyer might want to know?

A. This business has provided a fabulous lifestyle for the owners and could do the same for somebody else. Not only has the firm been a success financially, the seasonal aspect of the industry also allows for the owners to enjoy a more relaxed pace and considerable downtime in the winter.

Or, if the buyer would like to grow the business further, winter functions such as Christmas lighting and decorating, or snow removal are highly possible

Interested? Next steps:

1. Fax / scan the non-disclosure document 
2. Phone discussion
3. Release of financial information
4. Meeting with seller and tour of premises
5. Discussions that may lead to a deal

NOTICE

The information on contained in this document has been provided from sources believed to be reliable. You must seek independent verification of these facts through due diligence before taking any action based on this information.

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David Page | An Alberta Business Broker

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