A Lawn Care Advisor Can Set You Up For Success
Owning a lawn care business takes a lot of time and effort. In peak season you are probably working 16-18 hour days, and you might feel overwhelmed just getting through the day.
While you deal with the daily grind, you also need to look forward to the future of your company. No doubt there is a lot of sweat equity in your business, but you also need to think about the equity if you decide to sell.
A lawn care business advisor or a lawn care business broker will take the hassle out of the process for you, offering you advice about what your business is currently worth, and what you should do now to make it even more profitable in the future.
What can a Lawn Care business broker or business advisor offer to your bottom line?
Check out the following tenets that the lawn care and landscaping broker can offer.
Value of Your Company
Because of the seasonal nature of your business, at certain times of the year you are so busy you can barely come up for air. You really don’t have the time or energy to understand the nuances of your company’s worth. But a lawn care advisor definitely appreciates the value in your lawn care business. By studying the number of crews you have and how long they have been with you, how hands-on you are as an owner, and what type of licensing you possess, a lawn care broker can learn a lot about your company. Another important reason to bring a lawn care advisor into your circle is that they clearly understand the differences between a business with a revenue under $1M as opposed to those over $10M, and this will be important down the road. Whether having knowledge of the P&L analysis, or understanding buyer preferences and market trends, hiring a lawn care broker will serve you well.
Define the Business
There are many elements that go into a business that raise its value. As the garage door business owner, you are so entrenched in the daily work that you probably don’t even understand all that goes into determining your company’s worth. For instance, if you are a hands-on owner, your business is more valuable. Likewise, if your crews have been with you for a long time, your business is more valuable. Other considerations include having up to date licensing. Additionally, there are stark differences between businesses with revenues under $1M versus those that are over $10M. Add to these facts the market trends, P&L analysis, and all the other technical details, and you can see what a garage door broker is so important.
Transaction Tidbits
As the owner of your lawn care company, you know how to structure a week to get the most out of your employees, with consideration to the weather and the jobs you have to do. But odds are you don’t completely understand the structure for selling a business. Will you sell 100% of the business straightaway, or ease in more slowly? Is this a cash deal, or is there an earn-out involved? What expectations does the buyer have? How about you as the seller? Will all of the equipment and inventory get sold with the company? A lawn care M&A consulting session can help you understand exactly what is involved in this type of transaction.
Buyer Information
A lawn care business advisor will also inform you about the possible buyers. Although you might think you are just looking for someone who wants to shell out the cash to buy your business, there are actually many considerations when it comes to prospective buyers. Do they want a union or non-union business? What is their current digital footprint? Do they want a company that deals more with residential or commercial lawn care? A caring lawn care advisor can answer all of these questions and more.
Marketing Knowhow
We know how hard you work to make your lawn care business a success, dodging weather, demanding customers, and a tricky workforce. With so much time and energy spent on the daily grind, it is doubtful that you have the wherewithal to market your business successfully. A lawn care business advisor can help you create an NDA, so that potential buyers can sign it in order to make informed decisions. There also needs to be a big push with a Teaser page and a Confidential Information Memorandum (CIM) to give an overview of the full business, the finances, the operations, and the growth potential. If you leave the marketing to chance, you will likely not glean as profitable of a deal as you could.
A Vetted Buyer Network
One thing that is so hard to do while you are running a lawn care business and racing daylight, is to spend time trying to find customers. Instead of randomly trying to find a potential purchaser using whatever means you can cobble together, choosing a lawn care advisor is clever because they already have a vetted list of potential buyers in mind. And it works both ways, with the buyers trusting the lawn care advisor’s advice about available businesses, so it is a win-win.
A Negotiating Edge
Because a trained lawn care business broker has a list of carefully selected prospective buyers, there tends to be more traffic with the sale. More traffic means more competition, and lucky for you, more competition means more money. A lawn care advisor can build the right deal for the right buyer, and overcome any hurdles that might crop up. Navigating the negotiations is much easier with a professional on your side.
Due Diligence and Review of Legal Forms
As a busy business owner, once a sale gets to the due diligence stage, a lawn care business advisor will be even more helpful. This happens when an offer is accepted, and sets a slew of documentation into effect. With so much legal, operational, financial, and commercial information that comes into play, a lawn care broker is paramount. Legal documents must also be reviewed, such as the Asset Purchase Agreement (APA) and the employment agreement.
A More Peaceful Process
With as much as you do every day to keep your business running, it would be nearly impossible to push aside the daily grind for 3-6 months while your business sells. There are a plethora of emails, phone calls, Zoom meetings, and the like that will be part of the process. If you have a lawn care broker on board, he or she will also be able to do all of this work discreetly, so you do not have to tell your team about the impending sale until you are completely ready. The lawn care business advisor knows how to juggle all of the parts of the sale, while keeping your work life as peaceful as possible.
Why Work With Brentwood Growth
Access to Buyers
Over 400 private equity firms and consolidators that are actively looking to purchase.
Confidentiality
Ensure the sale of your business remains confidential to avoid disruptions for you.
Industry Expertise
More than 20 acquisitions with transactions from $80 million with an average of $4 million.
Valuation
Learn the value of your business and receive support with pricing to the market.
Negotiation
As your mediator, we work with you and the buyers to make sure both parties are satisfied.
Experience
Lead by a team with 75+ years of experience. Our experience ensures a smooth experience.
Do You Know What Your Business is Worth?
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