|From the Editor – Will We Have a Boom in Mergers & Acquisitions?
I have greatly resisted the temptation to predict a boom in merger & acquisition activity in the green industry. I have believed that while there are many positive forces at play, prevailing valuations will not trigger a boom and that financial discipline among buyers will make a sharp increase in valuations highly unlikely. While that financial discipline is very real, we are beginning to see some serious enthusiasm for acquisition opportunities.
As the year winds down, the trends that developed earlier in the year are continuing.
The marketplace is more active with both buyers and sellers than in a number of years. The level of private equity interest in the industry is at a high level as a number of firms are seeking good opportunities in landscape services and related sectors. We are seeing some signs of life in the lawncare sector as well. A number of people in the industry are considering roll-up strategies in different sectors.
There are several large pending transactions, which include private equity-backed firms seeking an exit. With all of this activity, we are still expecting to see some details of the Brickman/ValleyCrest integration plan soon, which may stimulate additional activity as companies take advantage of opportunities to strengthen their competitive position.
Will this all lead to a boom in mergers & acquisitions? I still think not, but we are likely to continue to see higher levels of activity for the foreseeable future.
As always, if you are interested in buying or selling a green industry business, ready to begin exit planning or considering an exit strategy, we would welcome the opportunity to discuss your situation.
Minnesota-based Reliable Property Services has formed a strategic partnership with The Lawn Ranger of Minnesota, acquiring its landscape maintenance business.
Austin-based planning and landscape architecture firm RVi has acquired Dallas-based NJB.
Chicago-based Alfred Benesch & Company (Benesch) has merged with Site Solutions, a Charlotte, North Carolina based site planning and landscape architecture firm.
Scotts Lawn Service, a unit of The Scotts Miracle Gro Company has agreed to acquire Indiana-based Action Pest Control. This is Scott’s long-awaited platform investment in pest control. Scott’s operates its pest control business under the Ortho brand.
Emerald Lawn care and Executive Lawn Care have merged in Frisco, Texas
If you know of green industry business sales or mergers & acquisitions that should be reported here, please contact us.
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|The Hidden Factor That Drives the Value of Your Business
You already know that your company’s revenue and profits play a big role in how much your business is worth.
Do you also know the role cash flow plays in your valuation?
In an interesting development, former Brickman executive Mike Bogan has been named CEO of TruGreen Landcare.
Bogan is one of the most experienced and successful executives in the industry, excelling in both operations and acquisitions.
TruGreen Landcare is owned by private equity firm Aurora Resurgence. This appointment can be interpreted as a signal of Aurora’s intent to build TruGreen Landcare into a stronger and more substantial player in the landscape services industry.
I met Mike while working on an acquisition with Brickman. Aurora could not have made a better choice.
|For a list of markets with businesses wanted, click here. The primary focus is commercial maintenance, but some design-build may be acceptable. There are also opportunities for lawn care businesses in many markets.
For a list of businesses for sale, click here. This list represents a portion of the projects we are working on which may be of interest.
Ron Edmonds of The Principium Group will be leading a roundtable discussion at The Western in Kansas City on January 4. The topic is Transition Planning in the Green Industry – Family, Employees and Third Party Sales. Click here for more information.
Principium’s Ron Edmonds will be presenting a webinar for the Professional Landcare Network, entitled “Exit Planning – Simplified – for Lawn and Landscape Business Owners” The webinar will be held on Wednesday January 7, 2015 at 1:30 pm Eastern Time. The webinar is free for Planet members and $99 for nonmembers. If you are not a Planet member, contact us and find out why you should be. Click here for more Information.
Book Ron Edmonds for Your Meeting
Contact us for information about booking Ron Edmonds to speak to your industry group or company meeting on green industry acquisition strategies, exit planning and similar topics.
The Sellability Score is a quantitative tool designed to analyze how sellable your business is.
After completing an online questionnaire, you will immediately receive a Sellability Score based on a 100 point scale along with instructions for interpreting your results. We will send you the full report along with a guide for interpreting the Sellability Score in the Green Industry.