CastleCo Yard Services is a Buyer

 

 This business buyer will pay my fees

Seller and buyer will each pay their own

 lawyer and accountant fees.

This buyer’s criteria . . .

The short version is that this buyer plans to expand their well-established lawn care business into complementary home and property services.

Their targets must be currently profitable and well-established businesses . . .

  • Located in Calgary or Red Deer or close surrounding areas.
  • Buyer is ideally searching for Mom and Pop owner operated businesses who are looking at retiring and looking for a new buyer to provide the same level of exceptional customer service that their clients are used to.
  • Operational expertise and industry knowledge must remain with the firm for a one year period.

CastleCo

CastleCo is a long established and successful lawn care firm servicing residential, commercial and industrial clients. They wrote the book on lawn, tree and shrub care.

They want to spend the winter looking at ancillary firms in the industry that offer complimentary services to the same customer base.

CastleCo will look at profitable firms offering . . .

  • Home cleaning (interior and exterior including pressure washing, window cleaning and gutter cleaning)
  • Yard maintenance (cutting grass, spring and fall yard clean-ups, aerating, etc)
  • Fertilizer/weed control
  • Bug and pest control (mosquitoes, ticks, ants, etc)
  • Pet waste removal
  • Pool / hot tub cleaning and maintenance
  • Tree and shrub care
  • Snow removal

They may also consider profitable established franchises.

Their plan is to roll your administration into their established back office for their existing staff to manage.

The buyer has a business degree and twenty-five years of experience operating a profitable service oriented business with an additional team of three in administration.

Firms that would require the buyer to take certain industry courses may be considered.

 Next Steps for a potential seller . . .

I’m the guy in the middle. At this stage, neither party has to know who the other is. All the buyer needs at this point is a brief description of your business, your product line, and your revenue.

If he is still interested, he’ll need to know your normalized cash flow to assess value. Your banker or accountant can do this for you (but may charge you).

Or you can send me your latest tax filing or income statement with any identifying information blacked out.

I will come up with your normalized cash flow (likely needing some clarification as I delve deeper) and my take on the market value of your firm.

You will take my number to your banker or accountant to verify it is within the range of completed deals they see pass over their desks.

If we get everybody on side on value and services, you and the seller can sit down and discuss operations and other matters until one of you walks away or the buyer is ready to propose a deal.

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David Page | An Alberta Business Broker

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