Four Success Factors for a Lawn or Landscape Acquisition

The Principium Group - Lawn & Landscape Mergers & Acquisitions - Exit PlanningI 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:

ONE – 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.

TWO – 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.

THREE – Is the deal right ?  The deal includes the price, the terms and the transaction structure.  The right deal is one one that fits the needs of both the buyer and the seller – the proverbial win-win.

Win-WinFOUR – Is there an effective integration plan – and will it actually be 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.

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The Principium Group is an advisory firm providing services related to mergers & acquisitions and exit planning to lawn, landscape and other green industry businesses.