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Longstanding Retail Garden Center

Description

This long standing stable retail garden centre is a dream to operate. From its 2 locations that have been around for many years, the current owner does not work in the day to day operations, leaving much potential for cost savings and increased revenues. This is a very easy to run operations that buys and sells bedding plants, trees & shrubs, soil & mulch and much more from 2 high traffic locations. Top sellers are hanging baskets and specialty planters and best opportunity for increased revenues are trees and shrubs.

 

With 25-30 full and part time staff providing consistent service to their customers who have come to expect consistent quality products, it's this combined with their great locations that have been in operation for 25 or more years that allow the business to prosper.

 

The sale is structured as an Asset Sale of both locations. While the seller prefers to sell both as a package, they are open to selling each location individually. By completing the NDA and becoming a qualified buyer, we'll be happy to send you a full Offering Memorandum that will answer most all of your questions.

Financial Information

Revenues and Seller's Discretionary Earnings (SDE) have been stable over the years. There is much more upside than downside, especially given the reputation of the name. 2021 and 2020 Revenues averaged $1,085,000 while SDE has been in the $230k range.

 

*Seller's Discretionary Earnings has been adjusted to include a hypothetical rental amount of $25k, which is sufficient to carry a $300k mortgage on the real estate at 5% over 20 years.

 

** Seller's Discretionary Earnings (“SDE”) is a calculation of the total financial benefit that a single full time owner-operator would derive from a business on an annual basis. SDE is the pretax and pre-interest profits, before non-cash expenses, owner's benefits, one time investments, and any non-related income or expenses. SDE may require that expenses be adjusted if a new owner (Purchaser) will necessarily need to take on a new expense. SDE is also referred to as Adjusted Cash Flow, Total Owner's Benefit, Seller's Discretionary Cash Flow, or Recast Earnings.

 

** Our expectations are for a minimum 35% down payment on the final negotiated purchase price. Feel free to run some of your own calculations here:

 

https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/financial-tools/business-loan-calculator

Real Estate

Location 1: Located in a high traffic area and situated on approximately 1 acre of land, this leased location has been in operation from this location for approximately 25 years. The annual rent is $20k.

 

Location 2: Located in a high traffic area and situated on approximately 6 acres of land, with only a small portion being used, this real estate is owned by the company and has an approximate value of $300k, included in the asking price.