Subject: Green Merger News - Valuation Trends in the Landscape Industry

Published by Principium Group              Subscribe 
Editor: Ron Edmonds

To our clients and friends:

In this edition of Green Industry M&A News,  we explore a topic that is very confusing to many business owners, business valuation.   To shed some light on the topic, we have completed a study of valuation in the lawn and landscape industry over a ten-year period.  We have compiled the results of our study into a special report, Valuation Trends in the Landscape Industry.  You can get a sneak peak at the results below and follow the link to download the complete report.

As always, if you are ready to discuss your exit or transition plans or an acquisition strategy, we would welcome the opportunity to speak with you.
Regards,

Ron Edmonds
888-229-5740 ext 101
901-3541-1510 (cell)
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Contents
Valuation Trends in the Landscape Industry
Recent Transactions
Valuation Services
Do you know your ValueBuilder Score?
Do you understand the value of your business?
About The Principium Group
Contact Information


Valuation
Trends
in the
Landscape
Industry 


In our experience, there is a great deal of confusing information about business valuation. Most business owners have heard about the values that some other business owners may have received for their business. Drawing conclusion from rumors, casual and incomplete information can be very dangerous.Recent studies indicate that nearly 80% of business owners are relying on the value of their business to fund retirement. Those same studies indicate that fewer than 30% have a plan to make that happen – or have any idea what their business is really worth.
To help address this situation, we have just completed a study of Valuation Trends in the Landscape Industry covering a ten-year period from 2007 through 2016.  This involved an in-depth look at transactions involving companies in the industry during this period as reported to two popular databases of transaction information.
Although there were a range of transactions, including some spectacularly high and low valuations, for the most part, industry businesses have sold for valuations in a fairly narrow band during this period.  Business owners who achieved exceptional valuations had to distinguish themselves from the majority of business owners.
To download a copy of our report, Valuation Trends in the Landscape Industry-2017, click here.

Many landscape industry business owners do not have a clear view of the value of their business - even though their ownership interest may be their largest asset and a crucial part of their retirement strategy.
The Principium Group offers cost-effective valuation services to business owners seeking an understanding of the value of their business in connection with planning the sale or transfer of the business or to assist in longer-term exit planning.
We offer a market value assessment, the purpose of which is to estimate the value at which the business is likely to sell in a third-party transaction. We use a combination of established valuation methodology, including discounted cash flows, capitalization of earnings and the market approach using industry data. We provide a detailed report, along with a narrative discussion of the business’s valuation, how key value drivers affect the valuation and opportunities for value enhancement. We also prepare a comparison of the company to industry benchmarks.
For more information about valuation services, please contact us.

Do You Know Your ValueBuilder Score?

The Value Builder Score™ is 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.


About The Principium Group

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

Recent Transactions
The following merger & acquisition transactions among lawn and landscape companies have been recently reported:

ABM Industries, Inc. has agreed to acquire GCA Services of Cleveland, Ohio, from Thomas H. Lee Partners L.P. and Goldman Sachs Merchant Banking Division

Trinity Private Equity Group has invested in Gold Landscape in the Dallas-Fort Worth. Mezzanine financing was provided by Plexus Capital.  More information.

Park City Nursery in Park City, Utah,  is under new ownership.  More information.

Grundstrom Landscape Maintenance in the Chicago area has been sold to a private investor.  More information.

International Transactions

Advancer Global has agreed to acquire Envirocare in Singapore.  More information.

Nurture Landscapes has acquired The Frost Group's Landscape Maintenance Operations in the U.K.  More information.


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.
Register now for Jeffrey Scott's 6-part webinar series: Breakthrough Ideas for the High Achievers
It's time to register for Landscapes 2017 and the GIE+EXPO in Louisville, KY October 18-20, 2017. We'll be there.

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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