Subject: Green Merger News -

Published by Principium Group   
Mid-Year M&A Report
July 2018

To our clients and friends:

Probably the biggest recent news in terms of lawn and landscape mergers & acquisitions is the initial public offering of BrightView Holdings.  While BrightView used the proceeds of the offering to pay down debt, it still increases their dry powder in terms of borrowing capacity.  Even more significant is the public spotlight now on BrightView and the pressure to perform to public market expectations. Various analysts have initiated coverage.  Quarterly earnings announcements will be closely watched.

BrightView touted their acquisition experience a great deal in the prospectus, setting high expectations.  As a result, I think you will see BrightView move  aggressively, especially with larger acquisition opportunities.  BrightView described itself as the "acquiror of choice" in the landscape services industry.  For some landscape services companies, I suspect that is true.  I also believe that brightView will be a major factor for private equity-backed landscape services companies seeking an exit strategy.

Otherwise, the pace of acquisitions has continued at a strong pace  in most regions of the coun try and at various size levels.  As has become common, there are a number of transactions, at all levels, which have not yet been publicly announced as well.

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.

Regards,

Ron Edmonds
901-351-1510
Record Number of Small Business Sales in the First half of 2018

A record number of small businesses changing hands in the first half of 2018, according to BizBuySell, the online business sale marketplace The growth can largely be attributed to a growing number of Baby Boomers exiting their business as well as improving business financials.   BizBuySell focuses in relatively small "main street" businesses. (The median business sold on BizBuySell in the second quarter had revenues of about $526,000).  The conclusion of BizBuySell's  study may not be completely applicable to larger businesses, but, in general the market for larger small businesses is more robust than for smaller ones.    Read more.
Recent Transactions

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

Brightview Landscapes, Ltd. announced several acquisitions, including Cleary Brothers in Northern California, Willamette Landscape Maintenance in Oregon, Precision Landscape in Dallas, Urban Tree Care in Los Angeles.  BrightView has also acquired J&S Lawnman in New Jersey More information.

Rotolo Consultants, Inc. has acquired GPL Landscaping of Miramar Beach, Florida, marking RCI's entry into the Florida panhandle.

WSC & Company has invested in Botanical Designs in the Seattle area. WSC is a private equity group that supports the search fund model.

SavATree has acquired Brooks and Barber Tree Management in Pennsylvania.

SavATree has acquired 404-CUT-TREE in Georgia.  

Pioneer Landscape Centers has acquired Midwest Materials in Colorado.  

Harvest Partners, a NY-based private equity firm has acquired The Dwyer Group from The Riverside Companies.  Dwyer is a multi-brand franchisor.  Its brans include The Grounds Guys in the US and Canada and Countrywide Grounds Maintenance in the U.K.

Seattle-based Plantscapes, Inc. has acquired Greenleaf Landscaping Group in Tacoma and Complete Yard Services in Everett.

Sweeping Corporation of America has acquired USA Services in Florida and Hy-Tech Property Services in Virginia.

SiteOne Landscape Supply continued its aggressive acquisition program, acquiring Landscape Express of Boston (more information), American Stone & Turf of College Station, Texas (more information), Auto-Rain Supply in Washington and Idaho (more information) and Landscapers Choice Wholesale Nursery and Supply in Florida (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.

France's Atalian and the U.K.'s Servest have merged to form Atalian Servest, an international facilities services giant.  More information.





Our Schedule

We plan to be at the following upcoming events:

PCT Virtual M&A Conference
August 22, 2018

Landscapes 2018
Louisville
October 17-19, 2018

PestWorld 2018
Orlando
October 23-26, 2018

NALP Leaders Forum
Aruba
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. 
Business owners often say their biggest fear about selling their business is not getting a fair value.
Here's one idea - Get Your ValueBuilder Score.
What's Your
Value Builder Score?

Do you have a business that is valuable and sellable? Find out by getting your Value Builder Score. 
Take the short, confidential, online quiz and get your Value Builder Score immediately. You'll receive a follow-up email with a 28-page report with lots of additional information.

Click here to get your Value Builder Score now.
Do You Understand the Value of Your Business?

Understanding the value of your business is an important step in exit planning. Many business owners are relying on monetizing the value of their business, but do not have a clear view of the value of their business.

Without understanding the value of their businesses, business owners cannot make informed decisions about planning the sale of the business or identifying ways to increase its value.

The Principium Group offers valuation services to business owners at a very reasonable cost.

Contact us for more information.

The Principium Group

The Principium Group provides advisory services related to mergers & acquisitions and exit planning to lawn, landscape, 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.

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.
Principium Group, 763 Walnut Knoll, Suite 6, 38018, Cordova, United States
You may unsubscribe or change your contact details at any time.