|From the Editor – Four Success Factors for Lawn or Landscape Acquisitions
I was recently asked about the most important factors leading to a successful acquisition of a lawn or landscape company. I boiled it down to four things:
1. Is there a business strategy behind the acquisition? Every acquisition does not have to be a part of a pre-existing strategy. Realistically, most acquisitions are opportunistic, but there does have to be a strategy – a reason for the acquisition.
2. Is the acquisition target the right target? Determining a target is the right fit involves–identifying potential targets, “qualifying” them and completing a due diligence process to confirm that a target is a good fit.
3. Is the deal right? By deal, I mean price, terms and transaction structure. The right deal is one that meets the needs of both the buyer and the seller – the proverbial win-win.
4. Is there an effective integration plan – and is it actually executed? In the excitement of closing a deal it is very common to lose sight of the steps that need to be executed after the deal is done. What happens after a deal closes is usually more important that what happens before it closes in determining if an acquisition will be successful.
We are continiung to see a high level of interest in potential lawn and landscape merger & acquisition transactions at all levels, including both potential sellers and buyers at all size levels. Many industry players are developing their own M&A strategies based on their perceptions of the opportunities in the industry. It will be very interesting to see how the market develops ovewr the next year or so.
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.
Here is our monthly recap of recent merger & acquisition transactions in the green industry:
Davey Tree has acquired Florida’s Lawn Logic.
The Dwyer Group, franchisor of The Ground Guys and other franchise brands, has been re-acquired by The Riverside Group.
Massey Services has acquired Green Pest Services in Austin, Texas
Superior Street Partners has acquired Virginia’s Riverbend Nursery
Washington’s SCJ Alliance has acquired Project Groundwork.
Nashville-based planning firm Littlejohn has acquired Kramer & Little in Orlando
If you know of green industry business sales or mergers & acquisitions that should be reported here, please contact us.
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|Lawn Care Merger & Acquisition Market Review
The Principium Group recently released a Lawn Care Merger & Acquisition Market Review Report This report gives an overview of the M&A market as it relates to lawn care businesses and includes a review of major players, recent activity and the outlook for lawn care M&A in 2015.
To download a copy of the report, click here
Principium will be publishing an additional report on the landscape services industry, Landscape Services Merger & Acquisition Market Review, on October 1, 2014.
|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.
Green Industry Conference
Registration is open for Planet’s Green Industry Conference, October 22-24, 2014 in Louisville, Kentucky. This year is the 25th anniversary for the Green Industry Conference. The educational offerings and networking events look great. There are several new educational offerings.
Ron Edmonds of The Principium Group will be speaking at the Green Industry Conference on Thursday afternoon from 3:00 to 4:15 pm on the following topic:
Growing Your Green Industry Business with Acquisitions: How to Succeed in Negotiating Acquisitions that Grow and Strengthen Your Business
We hope to see you there! We will also be at the Breakfast with Champions and will also be available for private meetings from Wednesday through Saturday. Contact us to schedule a time and place.
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.