Green Merger News – May 2013

We hope you are surviving the proverbial “100 days” and that you have a solid season underway.

We are seeing stronger activity in recent weeks and are optimistic for a very good year in spite of the headwinds of continuing economic and political uncertainty.

We are pleased to announce in this issue a new program, Green Exit University, which we hope will help many business owners make progress in developing their exit plans on their own pace

As always, if you are considering selling or buying a green industry business or you are ready to begin developing your exit plan, we welcome the opportunity to discuss your situation confidentially.  Justst give us a call or send us an email.

Ron Edmonds

[email protected]

888-229-5740

901-351-1510 (cell)

This time of year, our thoughts often turn to graduations.  Most likely we have children  or friends’ children graduating.  If not, we still hear reports of commencement addresses given by a wide array of public figures.  This year, I have been thinking about the word graduate a good bit.  I decided to look at the definition, beyond the obvious ones.  One I liked was “to temper or change by degrees,”  as in from one thing to something else.   I believe this is actually a reference to alchemy.

Graduation is an important step for students as they move from one level to another and, ultimately, into some version of the real world.

It strikes me that graduation is important for business owners, too.  Many small business owners started their businesses from scratch, often by bootstrapping, with the initial goal simply to survive.  What we have noticed is that among business owners who have survived and, to one degree or another, prospered, some have graduated and some have not.

Some of the characteristics of business owners who have graduated include:

They have a clear distinction between their personal and business affairs.

The business has an identity separate from the owner.

The business is  not overly dependent on the owner’s direct participation in daily operations.

When you start a business, the business is usually, by necessity, near the center of your universe. There comes a time when it is best for both the business and its owner for things to change.  Graduating  may make it possible for the business to graduate to the next level, too.  It also may make it more feasible for the owner to realistically consider a sale.

When we work with green industry business owners contemplating the sale of their businesses, we see a big difference between the business owners who have graduated and those that have not.  The graduates will have a much easier time achieving their goals in connection with the ultimate sale of their businesses.  The ones who haven’t graduated yet can make a big difference for themselves by working toward “graduation” and the freedom that can come with it.

So, how so you make progress toward graduation?  Fortunately, there are many sources of help available.  The first resource I recommend is the Professional Landcare Network, along with various state associations.  The resources available through them are nearly limitless.  There are also peer groups and some very good industry consultants who can help you along the way.  If you need some suggestions, give us a call. Local business coaches may be valuable, too, as long as you don’t lose sight of the unique characteristics of the green industry.

Here is our summary of recently reported merger & acquisition transactions in the green industry.

The Davey Tree Expert Company has acquired Green Tree Experts, Inc., of Raleigh, N.C. The acquisition of Green Tree is Davey’s sixteenth in the past five years and is part of a larger growth and expansion strategy.  Green Tree’s clients, accounts and employees have been merged into Davey’s existing Raleigh office.

Breckenridge Landscaping of New Berlin, WI has acquired Prairie Tree Landscaping located in Elkhorn, WI.

WindPower Innovations, Inc. has completed the acquisition of RIG Construction, Inc. of Mesa, Arizona in an all stock transaction.  RIG Construction’s operations include Cameo Landscaping, Cameo Pools and Cameo Solar.

Enviro-Serv, Inc. of Tampa, Florida, announced a letter of intent to acquire Royalty Lawn & Landscaping, Inc., of Wesley Chapel, Florida.   Royalty provides full service lawn care and landscaping services.  Enviro-Serv was formerly known as Transfer Technology International Corp. Enviro-Serv also announced plans to acquire additional  businesses in the home and residential property maintenance industries.

Based on a review of ServiceMaster’s SEC filings, TruGreen Lawncare made acquisitions of $5.6 million in 2012 compared to approximately $11.7 million in 2011.  First quarter acquisitions were not significant in either year.

Announcing Green Exit University:

Improve Your Odds for a Greener Exit

We are pleased to announce the launch of our new program Green Exit University.

If you have been thinking about exit planning, but don’t know where to start or have been worried about the cost of bringing in professionals to assist you in the process, Green Exit University may be just the answer for you.

Surveys show that nearly all Green Industry business owners have objectives for what they would like to do after they retire and/or sell their businesses.  However,  less than 40%  have an exit strategy and that less than 15% have an exit plan.  Experience tells us that those without a strategy and a plan are unlikely to achieve their objectives of being able to exit their business on their timetable and to enter the next phase of their lives financially stable.  Improving those odds is what exit planning is all about and Green Exit University is a new, cost-effective approach to developing an exit plan for your business.

Green Exit University is THE opportunity for Green Industry business owners to build their knowledge about the exit planning process, including how to improve and preserve the value of their businesses AND at the same time develop your own customized exit plan.   Green Exit University’s program includes a combination of text books aimed specifically at Green Industry business owners (Green Exit and the brand new Green Exit Workbook), along with fourteen internet video sessions, unlimited email personal consultation and two hours of telephone consulting, all at a very affordable cost.

Enroll now while there is a very special discount opportunity for the first business owners to enroll in this new program.  Classes officially begin July 1, 2013, but will be available by June 15 for early enrollees.  Enroll now to take advantage of special pricing for the first 20 participants.

Clear here for more information or contact us.

Green Exit University Webinar

We are also conducting a webinar on June 6, 2013 at 1:00 pm EDT to further introduce Green Exit University and to allow participants to sample actual Green Exit University content.Click here to register.

Have you wondered just how sellable your business is?  Here’s a chance to find out.  Take this quiz and find out your business’s sellability score.  You’ll receive your Sellability Score immediately, and then we will send you a 24-page report that provides additional feedback and  schedule a complimentary phone call to discuss the results.  As an added benefit, we’ll also send a  PDF e-book copy of Green Exit and our Guide to Understanding Your Sellability Score for Green Industry Business Owners to everyone who completes the Sellability Score quiz.

Click here to get your Sellability Score.

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 Principium 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.

Books by Ron Edmonds

Ron Edmonds of The Principium Group is the author of three books of special interest to green industry business owners:

Green Exit – Exit Planning for Lawn and Landscape Business Owners

Charting a Course – Acquisition Strategies in the Green Industry and

How to Sell Your Green Business

For more information about these titles or to order copies from the publisher, click on the links above.

You can also order them from amazon.com in print or kindle formats. Click here to visit our Amazon Store.

You can also order any of these books in print or ebook versions directly from Principium at the Principium Store.