Subject: Green Merger News - When a Buyer Contacts You

888-229-5740
Summer 2018
When a Buyer Contacts You
To our clients and friends:

These days, it is not uncommon for a landscape business owner who has no intention of selling his or her business to be contacted by prospective buyers expressing an interest in acquisition.  Sometimes this is a representative of a well-known strategic buyer in the industry.  Sometimes it is a business development representative of a private equity or other investment firm.  Sometimes it is a business broker cold-calling. 

How do you respond to this type of inquiry?  I have a few suggestions.
  1. If you absolutely know you have no interest in selling your business, don't waste your time or the other company's time.  Just tell them.  With that in mind, it's still OK to meet if everyone understands the situation.  You can learn a lot.  Sometimes the groundwork is laid that may result in a good opportunity sometime in the future.
  2. Be prepared. Handle these situations carefully. Get professional help early in the game - before you have a meeting, if possible. 
  3. Don't get so caught up in the possibilities that you get ahead of yourself.  If you are more focused on  selling your business, you may "take your eye off the ball" in running your business - one of the fastest ways to destroy value.
  4. A merger & acquisition professional can help you decide if negotiating with one party is a good idea for you or whether, as is likely, a process that involves multiple potential buyers is the best solution.
As always, if you are considering selling or buying a business or you are ready to start exit planning, we would be happy to speak with you.
Sincerely,

Ron Edmonds
901-351-1510 (cell)
Recent Deals
The following transactions have recently been announced involving green industry companies.  If you know of others that should be included, please contact us.

Davey Resource Group, a unit of Davey Tree , has acquired New Age Communication Construction in Cincinnati.  

Dwyer Group, the franchisor of The Grounds Guys and Countrywide Grounds Management has acquired Mosquito JoeMore information

Rentokil Steritech has acquired Wash8ington-based Pratt Pest Management

Yellowstone Landscape Group has acquired Leaderscape Palm Beach in Florida.

Bartlett Tree has acquired California-based HortScience, launching uts consulting division,

Private Equity Investment in the Landscape Service Industry

We recently released the 2018 edition of our annual report Private Equity Investment in the Landscape Industry. The report tracks private equity activity and trends in the landscape industry. Download your copy today.
August Only
Get Your Business  Valued Now
Many business owners are flying blind when it comes the value of their business. Some have an idea of value based on what they may have heard another business sold for. Often that information is not correct or out-of-date. Even so, in most cases, a business owner’s most significant asset is the business they have built.

We are offering a special opportunity to receive a Market Value Assessment of your business at a special price. This special offer, which includes a 25% discount, is available only during August, so get started today..

It works like this:
1. Sign up today.
2. Receive a questionnaire to complete and a list of documents to gather.
3. Submit the package of information to us.
4. We crunch the numbers and complete the market research.
5. You get the report within about two weeks after submitting the information package.

Our Schedule

Landscapes 2018 
GIE+ Expo 2018
Louisville, Kentucky
October 16-19, 2018

NPMA Pestworld
Orlando, Florida

M&A Source Fall Conference
Charlotte, NC
November 4-7, 2018

NALP Leaders Forum
Aruba
January 24-26, 2019
Get Your
Value Builder Score

For seven years now, The Principium Group has been working with the Value Builder System™.
The Value Builder System, was developed by John Warrilow, author of the award-winning books, Built to Sell and The Automatic Customer,  It is a statistically proven methodology designed to improve the value of a privately held business. 
At the core of the system is The Value Builder Score™, an evaluation system driven by an algorithm that evaluates a business on the eight core value drivers acquirers take into consideration when buying companies. The Value Builder Score™ gives a comprehensive assessment of the "Sellability" of your business, whether you want to sell next year or just to know that you're building a valuable asset for the future.
Studies show that companies with a Value Builder Score of 80+ received offers that are 71% higher than the average-scoring business.
Over 250 green industry companies have completed the questionnaire.

Get your Value Builder Score today.
Contact Us


Principium Group
P.O.Box 414
Cordova, TN 38088

principiumgroup.com

Ron Edmonds

Chris Martin
BRE #01966513, LICENSED IN CALIFORNIA
cmartin@principiumgroup.com
888-229-5740, ext 103
LinkedIn
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
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