May 2018

May 2018

To our clients and friends:

2018 has continued to be the most robust merger & acquisition market in many years for the landscape services industry.
People ask me all the time:  “How long will this continue?” and I simply reply, I really don’t know. The current market is buoyed by a strong overall market and favorable industry dynamics.  Still, the industry has some real challenges, especially as they relate to labor, a labor shortage, wage levels and immigration issues high among them.  In addition, the M&A is cyclical by very nature and the strong market will not go on forever.
What I do know is that the market is strong now and if you are considering a transaction over the next few years, now is a good time to evaluate your situation.
If you are considering a business sale or are in interested in exploring acquisition opportunities, give us a call.  We’d be happy to have a candid, confidential conversation.
Ron Edmonds
888-229-5740 ext 101
901-351-1510 (cell)

Growing Fast – Here’s What’s Likely to Kill Your Company

If your goal is to grow your business fast, you need a positive cash flow cycle or the ability to raise money at a feverish pace. Anything less and you will quickly grow yourself out of business.

A positive cash flow cycle simply means you get paid before you have to pay others. A negative cash flow cycle is the direct opposite: you have pay out before your money comes in.

A lifestyle business with good margins can often get away with a negative cash flow cycle, but a growth-oriented business can’t, and it will quickly grow itself bankrupt.                                  Read more.

Recent Transactions

The following merger & acquisition transactions among lawn & landscape companies have been reported recently.

Brightview Landscapes, Ltd. has acquired Environmental Earthscapes, based in Tucson, Arizona, with operations in Arizona, Nevada, Utah, New Mexico  and Texas under the names The Groundskeeper and Greater Texas Landscapes.. Environmental Earthscapes was a 100% ESOP-owned company. More information.

Bartlett Tree Experts has acquired Seattle Tree Preservation More information.

The Davey Tree Expert Company has acquired Elizabeth River Lawn and Landscape Inc. in Virginia.. More information.

Five Seasons Property Management has rebranded as Aspen Grove Landscape Group and announced its network of ten landscape companies, including its most recent acquisition, James River Grounds Management, in Virginia.  More information

Ruppert Landscape has acquired Classic Landscaping of Frederick, Maryland, and Camp Hill, Pennsylvania.  More information.

SiteOne Landscape Supply has acquired Atlantic Irrigation.  More information.

SiteOne Landscape Supply has acquired Loma Vista Nursery in Kansas City area.  More Information.

SiteOne Landscape Supply has acquired three Village Nurseries locations. More information.

SiteOne Landscape Supply has acquired Tarrazzo & Stone Supply in Washington State. More information.
Pioneer Landscape Centers has acquired Grand Materials and Supply in Arizona.  More information.
Living Earth acquired Nature’s Organics of Tennessee  More information.
Kellermeyer Bergensons Services (KBS) has acquired East Coast and National Maintenance Systems.  More information.
Recent International Transactions
This year has been an especially active period for landscape services M&A internationally as well.  Here are some notable international transactions.
Core Equity Holdings has acquired Id verde, the European leader in landscape services from Chequers Capital.  Id verde has  major operations in France and the U.K. More information.
Sullivan Street Partners has acquired the landscaping operations of ISS in the U.K.  The business will now be known as Tivoli.  More information.
Green Landscape Group of Stockholm, Sweden, completed a public offering and is now traded on the Nasdaq First North market.  Green Landscape is a portfolio company of FSN Capital and the offering represented a partial exit.  More information.

Get your ValueBuilder Score.  You can use this tool to get a better understanding if hw ready you may be to sell your business and steps you can take to improve the value if your business.  After answering some questions about your business, you will immediately receive your numerical score.  We will also send you a detailed report with recommendations.  Get your ValueBuilder Score now.

Understand the value of your business.   Many business owners are relying on the value of their business to fund their retirement or other future activities, but few business owners really understand the value of their businesses.  This is a critical step in improving and unlocking that value.  If you are interested in understanding the value of your business, consider having Principium prepare a confidential, cost-effective market value assessment.  Contact us for more information.

Our Travel Schedule

We plan to be at the following upcoming events:

Lawn & Landscape Top 100 Denver

June 5-6, 2018

Landscapes 2018

October 17-19, 2018
PestWorld 2018
October 23-26, 2018
NALP Leaders Forum
January 24-26, 2019
Wildlife Expo
Myrtle Beach
February 6-8, 2019

If you will be at any of these events, we’d be happy to meet.Contact us to schedule a meeting.
About The Principium Group
The Principium Group provides advisory services related to mergers & acquisitions and exit planning to lawn, landscape, pest control and facilities services businesses. Our professionals have assisted business owners in hundreds of transactions. For buyers, Principium provides assistance and counsel in strategic planning, identifying potential acquisition targets, due diligence and planning for successful integration of acquisitions. For sellers, Principium provides assistance and counsel in evaluating strategic alternatives, identifying and negotiating with potential acquirers and assisting with transactions from due diligence through the closing process. In order to provide the highest quality service, we maintain relationships with other professionals serving the green industry and can access those professionals to supplement our internal resources. No matter how large or small your business may be, we have the resources to serve you well. We understand that the decision to buy or sell your business is a profound one, and we pledge to work with you in a professional and confidential manner while we help you navigate this often confusing process. Whether you have immediate plans to buy or sell a business or may sometime in the future as part of an exit planning strategy, we would welcome the opportunity to talk with you about your business.
Chris Martin
[email protected]
888-229-5740, ext 103
Austin Grisham
888-229-5740, ext 104
NOTICE:  The information included in this newsletter is derived from publicly available sources. Our intent is to give a perspective on the industry taken as a whole. The inclusion of a transaction in this newsletter does not imply that The Principium Group acted as an advisor to either of the parties to the transaction. It is the policy of The Principium Group always to maintain the confidentiality of its client relationships. For those transactions in which The Principium Group did play a role, the information included herein is still limited to that available through public sources.