Tree Service

Minneapolis, MN (Hennepin County) (Relocatable)

Your #1 Tree Service
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Asking Price: Get Financing: $999,995

Cash Flow: $335,000

Gross Revenue: $880,000

EBITDA: N/A

FF&E: $700,000

Inventory: N/A

Lease Rate: N/A /SF

Established: N/A

Tree Service

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Business Description

Profitable & Growing Service Business!

A professional Tree Service providing a full complement of arboreal services to residential and commercial customers for over 40 years, including.

• Pruning (Trees & Shrubs)
• Thinning
• Elevating
• Crown Reduction
• Tree Removal
• Stump grinding
• Stump Removal
• Storm Damage Clean-up

The primary retail market served is the seven county metro area surrounding Minneapolis & St Paul. Through established accounts and call-ins the business sustains a solid sales base that is growing year-to-year.

Detailed Information

Inventory:
Included in asking price
Real Estate:
Leased
Building SF:
N/A
Lease Expiration:
N/A
Employees:
6
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
The sale includes multiple tree trucks, utility trailers, skid steers, mini-loader, stump grinders, automobiles, and various tools. The land and site office is on lease space. The corporate office is home-based.
Competition:
The Tree Trimming Services industry provides a range of arboriculture services, including pruning branches, cutting away dead or excess sections, transplanting, fertilizing, tree felling and stump grinding and removal. Over the five years to 2016, demand for tree cutting and other arboriculture services has grown as a result of rising disposable income and a rebound in construction activity - giving the industry 4.6% average growth. In the coming years, broad-based economic growth will lead to more construction activity, wider government budgets and higher levels of disposable income, which are all expected to contribute to industry revenue growth. Demand is driven partly by construction of new commercial properties and residences and partly by the economy’s overall health. Because management and equipment costs are mainly fixed, the profitability of individual companies depends on demand volume and operations’ efficiency. Small companies can easily compete with big ones, except in providing services to large customers. Big companies operate mainly through local branches or offices that have operations almost identical to those of local companies. The US industry is highly fragmented: the top 50 companies generate about 15% of revenue.
Growth & Expansion:
This Tree Service is well integrated into the industry with a select commercial customer base that has ongoing annual demands for consistent year-to-year sales. It also has good flex capacity to absorb opportunity when storm events occur. The owner has recently positioned the company for expansion in preparation for the intrusion of the Emerald Ash Borer.
Support & Training:
Seller will provide 2-4 weeks of support and training for the business transition. Additional training and consultation available for discussion.
Reason for Selling:
Other Opportunities
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(from currently available funds)
 
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Brian Tjaden

Business Listed By:
Brian Tjaden

Compass Brokerage & Realty Services

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