Are landscaping companies still being bought and sold in this COVID-19 Health and Financial Environment?
The short answer to this question is yes. But is now the right time for you?
Several transactions were already in process and moving towards closing while this set of events came into being in the February/March timeframe. Some have actually closed and funded in the past few weeks or will do in the next few weeks.
And yes, there are active buyers.
I am receiving phone calls from buyers and so are my peers across the country. In general, we are seeing
- Private equity buyers – PE buyers have accumulated funds to put to work. Their “reason for being” is deploying those funds within their investment model and they are still looking. From their perspective, having a “buyers’ market” is a plus. Some are open to looking at deals that may have been “too small” before this.
- Strategic buyers – I’ve spoken with several landscaping companies that are actively seeking add-ons to their existing operations. These are usually targeted to buying their competitors in a local/regional market and can include smaller deals than is typically the case with PE.
- Opportunistic buyers – Where there are deals to be had, there will be buyers who are interested. There are many sellers who were thinking of exiting/retiring in the past few months who will still want to do so. Managing through this difficult period may not fit with their interests. Prices are likely to be discounted to reflect the owner’s entrance in “getting out”.
In the past few years, most landscaping companies have received several letters from someone (competitors or business brokers or PE firms) who is interested in buying their company (or representing them in selling their company.
For some sellers, that is not likely to end. Others may need a more active marketing campaign to get their best offer. In either case, it is critical that you know what your company is worth before and after this set of events.
Harvest the Green Partners works with both buyers and sellers exclusively in the landscaping and green industry as they work through preparation for sale through to completion of the transaction. Please do call Alison at 224-688-8838 or [email protected] if you would like to discuss your situation.
Next post: What is the likely impact on pricing for landscaping companies?
