Tree Service in Skagit County, WA

My partner and I are looking to sell our small tree service. We do primarily pruning and preservation, and work about half time making a modest living (about $60,000 cumulatively). We don't have a lot of fancy equipment, and have invested in quality work and kept our overhead low: The sale would include a chip truck and chipper (both of which are older), chainsaws, pole saws, rigging gear etc., which are all top quality.

We have consistent year around work, a substantial number of repeat and regular customers including home owners associations, greenbelts, etc.. The business could easily be grown, we currently keep ourselves as busy as we'd like with customer referrals, our website, and a small amount of paid web advertising. No phone book listings, no print advertising. We've held off with growth because we are as busy as we want to be, and are already able to turn down removal work and work that requires more than about forty minutes of travel. We can certainly ramp up our paid advertising prior to finalizing a sale to encourage more cash flow for the buyer.

Our work consists of a small amount of consulting (generally hazard assessment, view management, etc.) with most of our income coming from view and risk mitigation pruning work.
We've built the business with a focus on long term solutions for trees, and personalized custom service, and had great results.

We'd like to sell to someone who likes trees, and wants to care for trees. The people we work for like (actually, they usually love trees) trees, and generally are looking to keep theirs. We feel we're providing a service in this area that is hard to find, and have found a good market for what we're offering. It's been a pretty nice gig for us, but we're ready to pursue other careers and would like find an arborist(s) who is committed to quality tree care, and will continue to serve the cliental we've developed.
We're asking $30,000 for the business and equipment and are willing to take payments with a substantial portion of that down. Happy to provide more details to interested parties.
We (Ryan or Erica) can be reached at 360-488-7439 or through our website: www.insighttreecare.com
 
What equipment do you own? That makes a big difference to potential buyers.

Our current setup is a 1995 Isuzu FRR (here in the PNW rust isn't an issue, and lichen washes off great with good soap and water) dump body with large tool bays and 212,000 miles on it, and a gas powered 2003 Morbark six inch chipper. Quite frankly, I'd downsize back to an Isuzu NPR or equivalent if I had it to do again, and wouldn't even consider a chipper larger than 9 inches, diesel might be nice, but for the scale of work and hours we put on it doing the type of work we do, it doesn't really make good financial sense, in spite of my personal preference for diesel engines with their many benefits.

We've run our business so the equipment is a pretty minor focus, it just needs to get the job done, which it does. Nothing flashy, but serviceable. Obviously, it changes the sale value of the business, and is reflected in our asking price. We've made a point to minimize our overhead, and in our market and at our scale that's proven quite successful. It's easy to get into the bigger is better game, and we've made a strong effort to avoid that, We're looking for a buyer who wants to avoid getting deep into debt and all the pressure that puts on them and the business. We've prioritized a simpler more modest lifestyle, and more time and flexibility to do things other than work, rather than investing profits into more expensive equipment.
 
How much for just the truck and chipper?
We're selling the entire business at this point. If you're interested in the truck and chipper shoot me a message with your contact info and I'll let you know how much if and when they go an the market separately.
 
Are you just out to yank my chain? Second sentence of the post states that it is about half time.
If you're actually interested in the business, or even just curious about the business model and setup, I'd be happy to chat. Give me a call.
Not at all. Just curious about tree company valuation. I don't plan on doing this forever and will likely sell my company some day. All I did was ask some simple questions about your company.
 
Not at all. Just curious about tree company valuation. I don't plan on doing this forever and will likely sell my company some day. All I did was ask some simple questions about your company.

It's hard for me to the get a read on where someone is coming from over the internet, and I wasn't sure you were yanking my chain, but I also wasn't sure you weren't, so I figured I'd just ask. I generally try to get to the point as quickly as I can, sometimes that comes across as blunt. It's not intended that way.
I also could have easily answered your questions if I'd known what you were really trying to find out. The valuation I'm going on is the value of the equipment ($15-19,000) plus something for the reputation and clientele we've established and the fact that someone can not have to go through the first couple years of scraping by until they can make ends meet and pick their work. I don't want to overprice for two reasons, first I want to find a buyer, but more importantly, I want to find a buyer who isn't going to be pressured into dropping their quality of work and life in order to pay of a bank loan on a bunch of equipment. One of the reason's the business has been successful for us is that we've kept our overhead low and as such have been able to pick our jobs and do work we feel is ethical, and relatively low risk and stress. This type of work (pruning and the occasional light removal) has in turn meant we simply don't need bigger equipment. We've tried to keep in mind that the business is meant to provide a reasonable income for our time (support us) and provide a service of ethical and honest tree care. It has to be profitable for both of those to happen, but if I forget that the point isn't profit, I end up compromising both those values, and also being less profitable. If someone buys the business, we'd like to do what we can to set them up to have the same benefits we've had from the business.
 

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