Field Notes: A Cut Above?

Investing in a Power Mower Dealership with Proven Longevity

An enduring business, SBA-prequalified, and with a retiring owner? What’s not to love? I found this listing for a power mower dealership in Seminole County, Florida that looks promising: Let’s dive into the financial metrics, operational characteristics, market positioning, and potential growth opportunities as viewed from the listing:

Financial Overview

• Asking Price: $1,250,000
• Gross Revenue: $2,523,039
• EBITDA: $294,940
• FF&E: $135,000 (included in asking price)
• Inventory: $425,000 (included in asking price)
• Rent: $7,050 per month

Business Operations

• Location: Seminole County, FL
• Industry: Power lawn equipment dealership
• Established: 1974
• Employees: 5
• Facilities: Leased facility, 7,050 sq ft, located on a main 4-lane highway

Analysis

Valuation and Price Justification:

• The asking price of $1,250,000 is approximately 4.2x EBITDA seems to be in line with valuation multiples for retail businesses with a component of service and repair.
• The inclusion of significant inventory and FF&E adds tangible asset value to the asking price.

Strengths:

• Long-established business with 50 years of operation. This probably gives the business deep local market penetration and brand recognition.
• Diverse product offerings for both home and commercial use, including sales, service, and repairs.
• Strategic location on a main highway in a region that blends urban and rural, serving both residential and commercial customers.

Risks and Considerations:

• The business is reliant on physical location and in-person transactions, which could be a challenge in increasingly digital marketplaces.
• Dependency on local economic conditions and seasonal demand variations typical to the lawn care equipment industry.

Opportunities for Growth:

• Potential for expansion by utilizing existing space for additional services or extending product lines.
• Implementing modern marketing strategies such as digital marketing, community engagement events, and partnerships with local businesses.

Market and Location:

• Located in a growing metro area with an expanding population provides a steady inflow of new customers.
• The business’s proximity to both city and rural areas allows access to a diverse customer base, from individual homeowners to professional landscaping services.

This power mower dealership could be an ideal investment opportunity for an acquiring entrepreneur. It has an established market presence, solid financial performance, and a strategic location. The asking price appears justified given the business’s profitability, asset base, and potential for expansion. The business’s reliance on traditional sales and service models suggests that integrating modern retail and digital strategies could be crucial for future growth and competitiveness. The extended training period offered by the current owners is a significant advantage, ensuring a smooth transition and continuity of operations.

What do you think? Check it out and let me know!

About: Silverwave Field Notes combs through and analyzes thousands of businesses available for sale that may be of interest to entrepreneurs looking to acquire an existing business. We are not affiliated with the business listed for sale unless otherwise disclosed.