Subject: Green Merger News - What Makes a Successful Exit?

Published by Principium Group   
October 2017

To our clients and friends:

There are several new developments as we are preparing to head out to Louisville for Landscapes 2017 and the GIE+EXPO next week.

Two weeks ago, we reported in the state of  the lawn care (fertilization) merger & acquisition market. We expressed our surprise that a new number two had not yet developed in that sector, perhaps with private equity backing. Perhaps we spoke too soon. There is now news of New York-based SavATree acquiring regional powerhouse Swingle Tree, Lawn & Landscape in Colorado. SavATree itself was acquired by private equity firm CI Capital Partners earlier in the year. SavATree has grown significantly and now definitely seems like a clear industry number two.

We've also had interesting developments in the landscape services space. Progress Equity realized a successful exit from Colorado-based Terracare Associates with its sale to Monarch Landscape Holdings, a One Rock Capital portfolio company. The transaction catapults Monarch to a significantly higher level in the industry. Chenmark Capital also made another investment in New England.  We report on those developments below. 

As always, if you are ready to start your exit planning process or the sale or purchase of business, we would welcome the opportunity to speak with you.

We look forward to seeing many off you in Louisville next week.
Regards,

Ron Edmonds
888-229-5740 ext 101
901-3541-1510 (cell)

What Constitutes a Successful Exit?
In a successful exit, the business owner:
  • knows what is next,
  • is emotionally and financially prepared for the next stage if his or her life,
  • is reasonably compensated for the business he or she has built.
  • is comfortable with what happens to those who have helped build the business, and
  • is able to exit the business in the desired manner at the desired time.
Recent Transactions
The following merger & acquisition transactions among lawn & landscape companies have been reported recently.

Monarch Landscape Holdings has acquired Terracare Associates, based in Little, Colorado, with major operations in Colorado, California, Colorado and Texas. Monarch is a portfolio company of One Rock Capital. Terracare had been a portfolio company of Progress Equity. More information.

SavATree has acquired Colorado-based Swingle Tree, Lawn and Landscape. The transaction did not include Tulsa-based LawnAmerica which became a Swingle affiliate last year. More information.

Chenmark Capital, owners of Seabreeze Property Services in Portland, Maine, have invested in Maffei Landscape of Cape Cod. More information.

In California, Tree Town USA has acquired Village Nurseries. More Information.

SiteOne Landscape Supply has acquired Marshall Stone of Greensboro and Roanoke. More information.




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.
Landscapes 2017
GIE+EXPO

We will be at Landscapes 2017 and GIE+EXPO in Louisville from October 18 to 20. We will attend many events during the conference. wander the trade show floor and hangout at the Marriott Downtown and Fourth Street Live.

We will be at the Breakfast with Champions on Thursday and Friday hosting a table on Exit Planning.

We will be speaking at the KEI Expo Center on Friday, speaking on Finish on Top: Build Your Game Plan for a Successful Exit.

If you will be in Louisville, we'd be happy to meet. Contact us to schedule a meeting. We hope to see you there.
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.
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, PO BOX 414, 38088, Cordova, United States
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