The Thaw Begins

It seems undeniable that the economy is working its way out of the recession. Stronger players are looking for acquisitions while definitely focusing on fundamentals and looking for good deals. Survivors are beginning to think that the Great Recession wasn’t quite as bad as they feared and definitely nothing like the Great Depression. The Feds most recent “Beige Book” had encouraging information – reports from the 12 Federal Reserve districts indicate that economic activity continued to stabilize.  Dallas indicated activity had firmed. Boston, Cleveland, Philadelphia, Richmond, and San Francisco mentioned signs of improvement.  Atlanta, Chicago, Kansas City, Minneapolis, and New … Read more

Investment in Lawn Dawg Signals Continued Private Equity Interest in the Industry

One transaction of note announced recently was the acquisition of a 70% stake in Lawn Dawg, Inc. of Nashua, NH by Brighton Partners.  Lawn Dawg, with branches in Litchfield, NH, Albany, NY, Woburn, MA and Portland, ME, is a regional lawn care company. Although private equity is heavily committed to the green industry through large ownership positions in  industry leaders ServiceMaster (TruGreen), The Valley Crest Companies and The Brickman Group, investments in companies like Lawn Dawg have been relatively rare. Lawn Dawg’s CEO is industry veteran Jim Campanella.  Campanella is a former president of the Professional Lawncare Association of America … Read more

Selling a Franchised Business

Franchised businesses are very common in various aspects of the Green Industry, ranging from some of the biggest players in the industry to newer start-up franchises.  Such names as Lawn Doctor, US Lawns, Weed Man and many others come to mind, in addition to franchise affiliates of large industry players like TruGreen and Scotts Lawn Service.  Franchise business owners are like other business owners – eventually the need to sell or transfer the business will arise.  Oftentimes, existing franchises can be very attractive options for business buyers, particularly when dealing with a well-known successful franchisor.  Many buyers will find buying … Read more

New SBA Loan Guidelines: Goodwill is OK

The Small Business Administration has issued its new guidance on business acquisition loans and the news is pretty good for both buyers and sellers. The new guidance in effect rescinds much more restrictive guidance issued in early 2009 that had raised widespread confusion and concern in the minds of borrowers, lenders, intermediaries and small business advocates. Under new guidance, the SBA clarified that SBA-guaranteed 6 month loans, made under the 7(a) loan program authorized by Section 7(a) of the Small Business Act, can be used to finance the goodwill portion of business loans.  If the goodwill component of the loan … Read more

ScottsMiracle-Gro Expands Operating Footprint in Ohio with the Addition of Three Facilities to Accommodate Future Growth

MARYSVILLE, Ohio, Sept. 8 /PRNewswire-FirstCall/ — The Scotts Miracle-Gro Company (NYSE: SMG), the world’s leading marketer of branded consumer lawn and garden products, announced today with Ohio Gov. Ted Strickland that it is growing its 1,500-associate Marysville campus. The Company is expanding its existing manufacturing plant and recently broke ground on a new office building to accommodate future growth. The Company also announced it has purchased a new 550,000 square-foot manufacturing and distribution facility in Orrville, Ohio. ScottsMiracle-Gro employs more than 8,000 associates worldwide, about 1,500 of them in Marysville. The 730-acre Marysville campus is the location of the Company’s … Read more