acquisitions

Unless you have heirs who want to take over your landscape business, you may eventually want to sell. In that case, your goal should be to make that business as valuable as possible. So, what makes a landscape business highly attractive to a buyer? Landscape Workshop, a full-service grounds management company with its flagship location in Birmingham, AL, has completed nine acquisitions in the last seven years, purchasing companies ranging from $1 million to $11 million in revenue. During this time, we researched a large number of possible acquisitions, many of which we decided not to pursue. Below is a list of key factors that we use when determining the value of a business and deciding whether or not to make an offer: Legal Labor: If you ever want to sell your business, start using E-Verify. The use of I-9s just doesn’t cut it—it’s easy for applicants to come up with very convincing fake documents. Your most likely, high-paying buyers—larger landscape companies and private equity—won’t take the risk of buying a company that doesn’t E-Verify. We walked away from three, otherwise interesting acquisitions in the last few years due to labor legality issues. Commercial Customers: Single-family residential work can have good margins and be a profitable business, but it doesn’t scale well and is more sensitive to recession. Being at least 70% commercial increases value significantly. Maintenance Work: Construction and design-build have a place in our industry, and Landscape Workshop has strong offerings in both areas. But these divisions fluctuate ...