CIVC Partners recently announced that it had acquired Yellowstone Landscape Group. Yellowstone was number 15 on the Lawn and Landscape 100 in 2014 (based n 2013 results) with revenues for 2013 of $84 million. While this was far from the largest transaction of the year, it was very interesting nonetheless. First, the announcement capped a lengthy auction process that had produced a number of high-profile bidders. In addition, it represented a successful exit for Gridiron which had started and built Yellowstone through acquisitions. It has been my belief that concerns about exit strategies have held back private equity investment in the industry to some degree and that the success of this transaction will embolden several middle-market private equity firms to make a move in the industry.
The high profile sale of The Brickman Group followed by its merger with The ValleyCrest Companies (soon to be rebranded BrightView) also focused a spotlight on the industry which will likely continue to attract capital. Business owners frequently ask me what they should be doing now, in light of this activity in the industry.
First, I advise business owners to always be ready for a sale, even if they have no intention of ever pursuing one. You never know when circumstances or opportunities will beckon and if you are prepared, the process will be vastly easier and likely produce a better result. In addition, the steps to prepare your business for sale usually strengthen a business even if you do not pursue a sale transaction.
Second, I suggest that business owners consider their options in light of their long-term goals. We are in a strong business sale climate right now. It is very hard to predict how long it will last. If your goals is to sell your business sometime ion the next five years, it ma be time to get serious about pursuing options.
Third, business owners would be well advised to consider the possibility of pursuing making acquisitions. There are more opportunities out there than in recent memory and financing seems to be fairly available for buyers.Fourth, even if you are not interested in pursuing the sale or purchase of a business, there have been changes in the marketplace as a result of deals that have been done that may create opportunities to strengthen your business by adding key talent that may be available and by exploiting market opportunities that may develop as acquisitions take place.
It s an exciting time. It has been a number of years since their cycle has reached this level and it may be a number of years before it repeats itself.
If you have an interest in selling or buying a green industry business, are ready to begin the exit planning process or would like to explore the potential impact of consolidation on your local market, we would welcome the opportunity to talk with you. Give us a call at 888-229-5740 or email us at [email protected].