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Tree Removal and Stump Grinding Service
A Central Michigan tree services operation running four related service lines across residential, commercial and municipal clients at roughly 50% margins.
Business Highlights
- Four service lines: tree removal, stump grinding, forestry mulching and land clearing
- Serves residential, commercial and municipal clients
- Margins around 50%, high for field services work
- Minimal staffing supports an owner-operator model
Considerations / Questions to Ask
- EBITDA and SDE are both stated at $250k, which means no owner salary is being added back. Confirm what the owner actually draws.
- 50% margins on an owner-operated crew usually means the owner is the labour. What does replacing them cost?
- Tree work in Michigan is seasonal and storm-driven. How much of revenue is weather dependent?
- What equipment is included, what condition is it in, and what is owned outright?
- Municipal work is usually bid and contracted. Is any of it under a contract that transfers?
Opportunities
- Four related service lines sell to the same customer on the same visit
- Forestry mulching and land clearing carry larger tickets than stump work and are already offered
- Storms create demand that no amount of marketing can generate
- The operation is small enough that a buyer with sales capacity can grow it without restructuring anything