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Grading, Seeding & Erosion Control



  • Price

  • Revenue

  • Equipment

  • Service Area
    Lincoln, Omaha, and surrounding areas

  • Reason for Sale

  • Profit Margin

  • Inventory

  • Account Receivable

  • Down Payment

  • Employees
    8: Project Manager (1), Nursery Manager (1), Foremen (3), Crew (3)

  • Lease
    14k sq. ft.: Office, shop; large nursery yard

  • Intangible Assets
    Long-standing client base, diverse client base, diverse project list, efficient team

This well-established and diversified landscaping company brought in over $1.6MM in 2017 and continues its multi-year growth.   Working in Lincoln, Nebraska and the surrounding areas, this business focuses on commercial clients (85%), but does maintain client relationships with residential clients as well (15%).  The assets include over $800k in equipment, vehicles, and trailers, providing a buyer with everything they need to seamlessly continue operations. 


Services offered by this team include commercial and residential landscaping.  For commercial clients, options include seeding, erosion control, planting, and maintenance.  They can fulfill client requests for new construction demands from site grading to blooming flowers as well as annual maintenance of existing properties and seasonal snow removal.  Booking large jobs well into 2020, this small but effective team can complete projects swiftly.  Residential clients can choose from annual maintenance and snow service. 


Operating as a team of 9, the owner leads daily administrative operations including estimations and client relationships.  Focusing on increasing clients to support additional crew members would generate additional income without added equipment costs. 

Business Highlights

  • Year Established: 1998
  • Service Area:  Lincoln, Omaha, and surrounding areas
  • Clients: Commercial (80%), Residential (20%)
  • Services: Grading, seeding, erosion control, planting, maintenance, snow removal
  • Lease: 14k sq. ft.: Office, shop; large nursery yard
  • Reason for Selling: Family
  • Employees: 8: Project Manager (1), Nursery Manager (1), Forman (3), Crew (3)
  • Hours: M-F 7:30 – 5:00
  • Seller Training Period: Flexible 3 month to 1 year transition period
  • Growth Opportunities: Expand maintenance services, Add team members to increase capacity, Take on additional small projects
  • Current Owner’s Responsibilities: Owner/operator, does not work in the field

Financial Highlights

  • List Price: $1,330,000
  • Gross Sales:
    • 2017: $1,696,987
    • 2016: $1,580,160
    • 2015: $1,450,262
  • Cash Flow:
    • 2017: $354,679
    • 2016: $454,593
    • 2015: $321,815
  • Assets Included in Purchase*
    • Equipment: $440,000: Equipment, furniture, fixtures
    • Vehicles and Trailers: $330,000: Trailers (7), Vehicles (7)
    • Inventory:  $57,000: Trees, plants, seed, etc.
    • o   Contracts for 2018-2020: $959,000
    • A/R:  $351k as of 10.2018
    • Intangible Assets: Long-standing client base, diverse client base, diverse project list, efficient team

*amounts may vary

Cash Flow Analysis

Description of Financial StatementP&L StatementTax ReturnTax ReturnTax ReturnNotes
GROSS SALES$1,696,987$1,580,160$1,450,262$1,198,847
Net Income Shown on Financial Statement$203,500$350,412$181,845$137,558
Compensation to Owner$72,308$43,086$38,454$36,930
11% Tax on total W2 Salaries$7,954$4,739$4,230$4,062
Meals & Entertainment$2,855$2,232$2,183$1,190
Owner's Health Insurance$6,900$6,900$6,900$6,900$575/month
Owner's Disability Insurance$2,148$2,148$2,148$2,148$179/month
Owner's Wife Insurance$600$600$600$600$50/month
Non-Business Telephone$1,356$1,356$1,356$1,356$113/month for 2 lines
Rent$28,800$0$0$0Paid to owner
TOTAL ADDBACKS$151,179$104,181$139,970$129,360
Seller's Cash Flow = Total Addbacks + Net Income$354,679$454,593$321,815$266,918
Profit Margin20.90 %28.77 %22.19 %22.26 %
  • 2017 Profit Margin: 20%

Typical Clients and Services


  • Commercial (80%)
  • Residential (20%)


  • Grading
  • Seeding
  • Erosion control
  • Planting
  • Maintenance
  • Snow Removal

Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.


Employees: 8

  • Project Manager (1)
  • Nursery Manager (1)
  • Foremen (3)
  • Crew (3)

Growth Opportunities

  • Expand maintenance services 
  • Add team members to increase capacity 
  • Take on additional small projects

Valuation Details

The Firm Business Brokerage used a cash flow valuation methodology to determine the purchase price of the business. 

The formula used is as follows:

Cash Flow       x          Prescribed Multiple     =          Fair Market Value

Cash flow is the sum of business net income plus any owner perks and any non-onward going expenses.

A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.

For this business, a 2017 cash flow was used with a prescribed multiple is 3.75.  With this information, the computation is as follows:

$354,679         x          3.75     =          $1,330,045

The fair market value found above positions the business list price at $1,330,000.

Funding Example

Purchase Price:                             $1,330,000

20%Buyer Down Payment:             $266,000

80%Bank Loan:                                $931,000

Bank loan 8-year term at a rate of 6% equals a monthly loan payment of $13,982.

After business expenses and loan payments, a buyer with a 20% down payment of $266,000 would retain a profit of $186,889, which results in a 70% return on investment in the first year.

A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed purchase price of $1,330,000 with the terms listed above, the coverage ratio is 2.11. 

Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available. 

Purchase Price:



Bank Loan Needed: $


Funding Details


Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $


Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
2017 Cash Flow
Annual Debt Service: $

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2017 Cash Flow
Annual Debt Service: -$

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
ROI: %


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210 N 78th St. 2nd Floor
Omaha, NE 68114

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