Landscaping contractor, installation-dominant revenue, equipment at end of service life
§ 01 · Observed
What was documented in diligence.
Revenue breakdown: $620,000 installation/enhancement (peak install year — $190,000 above prior year), $290,000 residential maintenance (informal month-to-month), $0 snow removal. Installation revenue normalized to prior 3-year average of $430,000. Equipment appraisal: 10-year average age; independent appraiser marked three units to scrap value rather than book value — total appraised value $48,000 vs. $142,000 book. Maintenance contracts: all residential, all informal, no written terms. No H-2B or other documented seasonal labor program.
§ 02 · Outcome
What happened.
Buyer submitted LOI at 2.9× blended SDE. After installation normalization, equipment capex reserve, and maintenance-base-only SDE calculation, adjusted SDE dropped 54%. Deal terminated — repriced multiple on adjusted basis was not financeable.
§ 03 · Structural Pattern
How this deal fits the four-pillar framework.
Lower-band conditions on Earnings Quality (installation-inflated trailing year), Pricing (equipment at scrap, not book), and Transferability (informal residential agreements). The deal was presented on a peak-installation-year trailing period; the ongoing business did not support the purchase price.
This is an anonymized composite drawn from observable structural patterns in the sample window. It is not a specific deal. The structural pattern, band placement, and outcome reflect commonly observed combinations; a future consented case study will replace this entry.
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