Garden Ctr, CO, 92K Adj Earnings, Growing
Glenwood Springs, CO
Garden Center, full service, well established, on the Western Slope of Colorado regularly serving customers from Parachute to Aspen and Vail. There are more than a dozen communities in their market. The business offers an impressive selection of plants, seeds, shrubs and trees along with a full range of gardening supplies. They specialize in custom signature flower hanging baskets and mixed planters; these orders increase every year and are considered recurring revenue. They also are proud to host the annual family fun holiday event that draws over 3000 people each year. The Owners are a husband and wife team that started this business in late 2007 and have grown it to a comfortable size and profit. They are retirement age and take 3 months off in the winter.
2014 revenues were $294,841 which were up 5.6% over 2013’s revenues. The adjusted net income was $92,726 and was up 6.5% over 2013’s. They are still growing at the same rate as of June 2015 and expect the bottom line to break the $100K mark this year.
The business has an estimated $95,000 of current value equipment that the buyer will get Debt Free!
This is a “Fun Lifestyle” business to own and would be perfect for a family. They believe all of the employees will stay post-closing and they will help for as long as the new buyer wants them to. Please fill out the Non-Disclosure Agreement in the first paragraph to see the pictures, financials, owner interview, tax returns, business name, and exact location. You must see the owners interview and pictures to be able to fully appreciate this business.
Location: Western, CO between Vail and Grand Junction
The sales price is $175,000 plus inventory which fluctuates with the seasons. The sales price includes all of the equipment and is only 2 times earnings. This will be an asset sale with the business being sold debt free.
Here is the link for the Non-Disclosure Agreement, “NDA”: http://companybroker.com/buyer-profile-jeff.htm If it is blue you should be able to click on it, if not please cut and paste that to a URL line and it will give you the NDA which will allow me to automatically send you the Full Sales Package containing a detailed data room with financials and a Comprehensive Video on the entire operation and a full interview with the owner by clicking on the secure web link to the NDA. If you have any questions or comments on the NDA please email me at firstname.lastname@example.org or call me at 303-382-1926. Thank you.
Brief Overview and Deal Points:
This is a garden center with six greenhouses located on 4.7 acres with water rights, a general store, and a 2,000 square foot ranch style home. They live in the house with one room dedicated to the business office. They specialize in gourmet annuals, organic and natural vegetables, custom signature hanging baskets and mixed planters, and their big holiday annual event. They also provide a nice selection of perennials, fruit and ornamental shade trees, shrubs, and necessary gardening supplies.
The assets included in the sale of the business are estimated to be $95K which includes an irrigation system, skid steer tractor, gator ATV, covered trailer, riding mower, office equipment, displays, chipper, the pumpkin patch accessories, and various tools and smaller equipment. They will be keeping their vehicles (pickup truck and car). This is a lot of assets for a business that makes $92K and has a sales price of only $190K. The property was just professionally appraised in June of 2015 for $550,000 and is being offered at that price. That is significantly less than what they paid for the property and less than what they were asking but decided to respect the appraisal. This leaves some valuable upside to the property for the new owner.
This is a happy place to live and work. They have very loyal customers that return every year based on the quality of their plants and the high level of service.
There are several sources of revenue:
1) Special Custom Orders – They specialize in designing custom signature hanging baskets and mixed planters for homes, businesses, and communities within 60 miles of them, including Aspen and Vail. They also sell along the Roaring Fork Valley from Glenwood Springs to Aspen which has seen tremendous growth and increased wealth. These custom orders have increased steadily every year. They do this inexpensively by buying young flowers in March and growing them in their greenhouses until the custom orders are ready for delivery in June. Frequently, customers tell them how pleased they are with the designs and that their plants are the best in the area. As of March 1st 2015, they already had $34,000 in signature custom orders contracted for this season which is above the number they had at the same time last year.
2) Holiday Event – They have nearly 3,000 visitors paying from $8(Adults) to $5(kids) as the admission fee. It has grown more popular every year, as customers utilize social media to spread the word about the fun they've had. There is nothing similar to this event in the area, and more and more families want this destination experience. They provide all kinds of activities and sold over 4,000 items on top of the admission last year. Parents as well as children comment how much fun they've had as they make memories together playing the games. It can be expanded by adding more decorations, food and beverages, by a concentrated effort to attract more school field trips, and expanding the venue by leasing more land nearby to add additional attractions and larger products. There is also an opportunity to create specialty items that can be sold during this event.
3) General Store and Supplies– They have a 400 square foot “general store” that sells all the standard garden tools, seeds, fertilizer, etc. It is an old barn that they customized and looks great. You must see the pictures in the data room above to appreciate this. Colorado clay like soil requires gardeners to amend soils every year, a source of recurring revenues in the spring, summer and fall. Their motto is helping every gardener on any budget be successful. Knowing how to help gardeners solve their particular challenges keeps customers returning throughout the summer and fall.
4) Vegetables and Herbs - The cultural trend toward natural and organic foods, the desire for farm to table produce, and the fact that families want to know what they are eating (e.g., no pesticides) has been a significant factor in sales revenue nearly doubling in this category over the past 5 years. They have responded by growing more of their vegetable seedlings which has increased profit margins.
5) Flowers, Plants and Trees – Bursting with color, "annual gourmet flowers" have customers delighting in the beauty of creation as they make their plans for their home or business shine. Customers choose from unique plants as well as the traditional expected plant varieties. Since they "harden off" their plants, customers experience successful transition from the nursery to home planting. The owners, for a consulting fee, will go to the homeowner's residence and help them design their yard with annuals, perennials, shrubs and trees. If the new owners want to add landscaping services (doing the actual planting), this would be a natural add-on revenue. There is a definite market for this service, and could be a huge source of revenue.
The company is 7 years old and has a great reputation. The seller will agree to full Reps(indemnifications) and Warranties and further guarantee a solid legal and business standing. They also have a great record for safety (OSHA) and no legal battles.
They have 9 seasonal employees who are paid hourly. They are very loyal and good at their jobs and will be very helpful to the new owner. During the spring, employee responsibilities include set up of nursery and general store, plant care, design, sales and customer service, inventory control, maintenance, office assistance and website/weekly emails. During their annual holiday event, employee responsibilities include set-up, sales, activities assistance, maintenance, inventory, office assistance, putting plants "to bed" for the winter, shutting down operations, and website/weekly emails.
The owner will sign a non-compete. They will offer a full time transition to ensure a successful transfer. A buyer does not need any special skills because they can teach him/her what they will need to know to run and grow the business. A passion for plants and caring customer service goes a long ways in being successful. The owner will also be able to live on the property just as the current owners do now.
Growth Potential: The company is already growing at 6% very steadily. The new buyer can increase growth by hiring a salesperson to increase the sales of signature custom planters to the high end markets like Aspen and Vail. They can also expand geographically by taking advantage of their reputation and quality of plants by establishing a satellite operation in a larger nearby community. There is room to establish a growing wholesale operation. Besides expanding plant production to be used in the retail operation, (e.g., vegetables, herbs, annuals and perennials for signature custom orders), the wholesale operation could serve the Roaring Fork Valley landscapers as well as Aspen and Vail. The new owner would have to begin working in late winter and install heaters in the greenhouses. However, the owners have already installed the major gas line which makes this upgrade possible. In addition, increased plant production would dove-tail easily with the opportunity to start their own landscaping company. They have been asked to do this many times and just don’t have the energy anymore. Since their annual holiday event has been so successful, they think there is a Christmas destination revenue potential which they say is badly needed in their area. They have the perfect property, barn, and general store and want to put a giant drive through light show together. They have seen one in Michigan but never in Colorado and they believe that it would be as popular as their current holiday event. This would also allow them to sell all kinds of Christmas items which could be big $’s. They just don’t want to work during the Christmas season. They take off from mid-November until mid-February every year. Potentially there is additional revenue to be made utilizing the internet.
The 4.7 acres of land and structures are being offered separately but I don’t see how anyone would buy the business without buying the property also. The 2,000 square feet house includes 3 bedrooms, an office, and 3 baths. The business office is currently located in the house. The property also includes 6 greenhouses, a barn, a general store, fencing, and an irrigation system. It has a clear view of I-70 and has a beautiful red mountain behind them. The property has rights to both well water and from the ditch located at the back of their property. They have plenty of inexpensive water which is a big thing in their area and helps them have a competitive edge. The property was just professionally appraised in June of 2015 for $550,000 and is being offered at that price. That is significantly less than what they paid for the property and less than what they were asking but decided to respect the appraisal. This leaves some valuable upside to the property for the new owner.
The company is located in a beautiful part of Colorado that has excellent weather compared to the front range and mountains. They have over 300 days of sunshine every year. Plus, the area is growing.
Plus, Colorado is the best State in the country to own a business. Please see the web link. Colorado is THE "#1" fastest growing and strongest economies in the United States, per Money.MSN.com and Business Insider. This article ranks all 50 states by eight economic measures including GDP growth, housing prices, job creation and exports.
Summary: This turn-key business is perfect for a family that cares about a quality lifestyle. It is located in a very community centric area where there is virtually no crime or other negative distractions. It is in a beautiful location with water, red mountains, blue sky, wildlife, and outdoor activities all around. This business also allows some time off during the winter even if you decide to stay open for Christmas. There would be time to ski and enjoy the winter activities to the east of them in the mountains. The business can continue to grow and both the business and the property should become more valuable over time.
Thank you for your interest in this business. Please Call of Email for Information: The broker is available at any time to discuss your interest in this offering.
Jeff Chapman Eisnaugle
Company Broker Group, LLC.
999 18th St Ste 3000
Denver, CO 80216
This is prepared by Company Broker Group with information provided by the Seller. It was not created by the seller and neither the Broker or the Seller are responsible for its accuracy. Buyers are responsible for their own due diligence. Neither the Broker or the Seller will indemnify or guarantee any forward looking statements or projections.
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Company Broker Group, LLC, and Jeff Chapman Eisnaugle will be operating solely as a “Seller Agent” in all transactions.