This $9M Landscaping Business Looks Great… But Is It Really?
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Feb 28, 2025
The discussion centers on a North Carolina landscaping business listed at $9 million, revealing its strong EBITDA and growth potential. However, hidden risks like labor issues, customer contracts, and equipment valuation raise eyebrows. The hosts explore why the seller is exiting and the impact of immigration policies on labor. They also emphasize the need for thorough financial reviews, cautioning potential buyers about transparency in these deals. It's an insightful look into the complexities of business acquisitions in the landscaping industry.
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volunteer_activism ADVICE
Diligence Equipment
Diligence equipment with a qualified expert like an appraiser or mechanic.
This helps assess the true condition and potential deferred maintenance costs.
insights INSIGHT
Enterprise Value in Landscaping
Many small landscaping businesses lack enterprise value due to their small scale.
Larger businesses with employees managing other employees offer more inherent value.
question_answer ANECDOTE
Landscaping Industry Skepticism
Heather Endresen expresses skepticism towards the landscaping industry due to past experiences.
She has observed a higher rate of seller dishonesty in this sector compared to others.
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In this episode, the hosts break down a North Carolina-based landscaping business listed for $9 million, generating $1.8M in EBITDA on $8.2M in revenue. Sounds great, right? Not so fast. They dive into hidden risks like customer contracts, labor concerns, and equipment valuation to determine if this is truly a great deal—or a potential headache.
With 52 employees, $2.3M in equipment, and major growth potential, there’s a lot to love… but also some red flags. They discuss why the seller is moving on, the impact of H2B visa labor risks, and the real cash flow number buyers should consider before making a bid. If you’re eyeing a blue-collar business acquisition, this episode is packed with insights!
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