Business for Sale, Would I Buy It? | Irrigation Company?

All right, in this of “Would I buy this”, today we’re looking at one of Southern California’s most profitable irrigation companies. The asking price is 2.5 million, gross revenue [2,495,392], and cash flow of 820,000. So about 33% net profit, which is a nice amount. Aerations Plus LLC premier provider of top-tier irrigation installation. Well-established reputation. Built a loyal following. What sets them apart is their commitment to customer satisfaction. Strong and growing client base. Over 10,000 homeowners across LA and North Orange County rely on us for their irrigation and landscaping needs. Not uncommon for the business to generate over 200K in revenue each month. I mean that all sounds good if that’s true, especially if they have repeat business for maintenance or maintenance contracts. And got, you know, a good amount of crews. And they can go out and do this work on a regular basis at a good profit margin. It’s a great business. It’s simple to understand, easy to run, relatively easy to grow, and it’s not going to go away anytime soon, not going to be replaced by AI  anytime soon. The asking price is 3X, a little over, so that’s pretty reasonable for this size business. It’s been around since 2016, so eight years running. There’s a lot to like about this. I would imagine they’re getting a pretty good amount of interest and a pretty good volume of offers or offer intent. And this is definitely one that I would buy. And then what I would do with this is aside from buying it to grow, I would look at adding other similar businesses in the connected geographic areas and maybe in the same space. Like a tree service business, landscaping business, and then grow those and kind of just ramp the whole thing up. And within four or five years you could have a business with 10 million in revenue And you know 3 – 3.5 million in profit. And I think this is going to be something that is going to be around for the long haul. There’s a lot to like about this business. So I would definitely be interested in looking at this business for sale if I was in the market in LA for a business.

More about this series, CapForge’s owner and founder gives us a little behind-the-scenes on what a good or bad business would be. CapForge helps tons of clients either buy or sell business and Matt was a business broker before starting CapForge. Let’s look at some of these businesses up for sale and see if Matt would be interested in buying them.