Commentary
We are pleased to present our Year in Review edition which features a recap of publicly reported merger & acquisition transactions within the green industry over the past year. It also features our analysis of key trends to watch for in 2013. We will be offering two webinars this month. On January 17, we will be offering Lessons from The Sellability Score, which will cover data developed by The Sellability Score focusing ion improving your odds of getting an offer for your business. The second will be January 24 will be on Understanding the Value of Your Business. We will attempt to unravel this complicated and confusing topic. As always, if you are considering the sale of your business, an acquisition or are thinking about exit planning, we would be happy to speak with you. -Ron Edmonds Call me direct at 901-351-1510
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Key Trends to Watch in 2013
Every January, we offer our thoughts on key trends that will affect merger & acquisition activity within the green industry during the coming year. Here are our predictions for 2013: General Industry Conditions Growth will begin to accelerate in the industry- in both the commercial and residential sectors, particularly as housing starts improve, but growth rates will still be modest. Price competition will remain intense, especially in commercial maintenance. Specialty sectors, such as water features, will remain slow. Mergers & Acquisitions Valuations will remain restrained with most buyers exercising considerable discipline. Large industry players will return to the acquisition marketplace, but in a restrained way. Consolidation efforts will be primarily regional. There will be private equity interest in the industry, but it will not be widespread. Integrated facilities management companies will continue to add landscape maintenance to their service offerings, often through acquisitions. Franchising Franchising will continue to gain momentum in many sectors of the industry. We will see many examples of acquisitions in the franchise sector, including acquisitions of existing franchises by both existing and new franchisees. Existing franchises will acquire independent businesses to facilitate growth and expansion. Franchise conversions will be popular. The strength of franchising will make franchisors attractive acquisition targets. Political Issues Despite the resolution of the fiscal cliff drama, the uncertainty and contentiousness in Washington will boil over again, probably more than once. While the issue of tax rates seems to be settled, possible tax reform initiatives may yet have a big impact on some business owners. Both parties will claim to be focused on improving conditions for small business. Business owners will have difficulty perceiving the reality of the claims. SBA lending will continue to be a bright spot. The Obamacare employer mandate for companies with more than 50 employees will cause a few businesses to restructure to keep themselves below the 50 employee limit. This phenomenon may get more attention than it deserves. The increasing cost of health care will continue to be a major issue. Though immigration policy was eclipsed by taxes and economic issues late in 2012, we expect a meaningful effort toward immigration reform early in the second Obama administration. For a report card on how we did with last year’s predictions, click here. We are pretty proud of ourselves. |
Upcoming Webinar:
Understanding the Value of Your Business with Ron Edmonds -January 24
You are invited to participate in a webinar on Understanding the Value of Your Business on Jan 24, 2013 at 12:00 PM CST. In this webinar, Ron Edmonds will unravel one of the most confusing topics for many small business owners. Click here for more information.
Lessons from The Sellability Score with Ron Edmonds – January 17
You are invited to participate in a webinar on Lessons from The Sellability Score on Jan 17, 2013 at 12:00 PM CST. The specific focus of this webinar will be increasing your odds of receiving an offer for your business. Please complete The Sellability Score quiz prior to the webinar. For more information about this webinar, click here.
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Do You Understand the Value of Your Business?
Consider a Market Value Assessment
Understanding the Value of Your Business is an important step in the Exit Planning Process. Most business owners do not have a clear idea of the value of their business or understand the important factors that drive that value. Understanding the value of your business will help you plan for the future and will also allow you as a business owner to take constructive steps to improve that value over time. The Prinicpium Group offers a cost-effective approach we call the Market Value Assessment. The Market Value Assessment provides a valuation for your business based on established methods and industry conditions for planning purposes. It also will specifically identify important factors that affect the value of your particular business. If you are interested in learning more, please click here, email us or call Ron Edmonds at 901-351-1510. |