Selling Your Lawn Care & Landscaping Business
You have certainly put a lot of blood, sweat, and (even some) tears into your lawn care business. And at this point you really only have three choices. You can landscape forever, you can pass it on to your offspring, or you can sell it to a worthy buyer.
If you have been thinking about how to sell your lawn care business, you need to study all of the variables that go into the sale of a business.
You can’t just sell a lawn care business on a whim.
You need to understand all of the nuances of a sale.
Because it seems like it is getting more and more difficult to find reliable workers, and the inventory for landscaping and irrigation jobs is growing ever more expensive, it is really important that you consider when the right time is to sell your lawn care business.
If you have been wondering, “How can I sell my lawn care business,” then understanding the variables below will help you to decide if the time is right for you.
Pick Your Plan
To sell lawn care business, you need to take a good long look at yourself. Do you have your heart set on retirement at a certain age? Can you handle the physical labor that comes with a lawn care business? Do you have a spouse retiring, new grandchildren on the way, or other family situations that make it a good time to sell? Or maybe you have other career goals that can’t be met while you are busy running your business.
"Immediate" group
Just as the name implies, an immediate sale means that you are ready to sell today and you would like to be completely out in 6-12 months. This will get you money in the bank, a short transition time while you help the new owner get situated, and then you are free to pursue other jobs, passions, or even retirement.
"In-a-Bit" Group
This group would like to be completely out in five years, but you could sell a piece of it today, put some money in the bank, and then retain some ownership. As you and the new owner work hard to build cash flow, you would sell the rest of the business in a few years, thereby taking two bites of the apple.
"Someday" GROUP
If you are in the someday group, it means that you can picture yourself selling your lawn care business in five or more years, but you are not ready to do so today. In the meantime, you will look into the metrics that will maximize the value of your business. When your five year plan rolls around, you should definitely have more cash flow and sell a stronger business.
Value Your Business
One reason you might be asking “Should I be selling my lawn care business?” is when you have reached a solid valuation. When you think about profitability, growth rate, and cash flow, these elements can be very attractive to buyers and it might be time for you to sell. Or maybe there are strategic buyers that are pursuing lawn care companies as part of a particular growth strategy. In order to know how to sell a lawn care business, you need to understand that a lawn care business broker can set you up with buyers who are interested in your type of company, and you won’t have to take a shot in the dark.
Study the Industry
If you want to sell your lawn care business, you will need to pay close attention to the industry changes. In the lawn care industry, finding diligent workers can be difficult, and the country’s aging workforce does not help matters. It is also difficult to retain workers. Supply chain issues can still hamper product deliveries and set projects back. Add to this the changing climate, which certainly affects outside work, and lawn care businesses have a lot to contend with.
Investigate the Market
The market can affect the sale of your business, and if you want to sell your lawn care business you need to consider what is going on in the world. If there is a recession on the horizon, or inflation or supply chain issues hit, this makes it more challenging to run a lawn care business. On the other hand, sometimes larger companies can acquire smaller companies and grow geographically, diversify their services, and even create a more professional recruiting and training process. Knowing what is going on with the market can help you discern your next move.
Choose a Successor
One part of selling lawn care business that you need to consider is whether or not you have a successor. You may have always thought that one of your children would take over the business one day, but now that the time has come, you realize that is not an option. In most cases, staff members and even managers do not have enough business savvy to run your business, and you will need to sell the business to someone with more experience and acumen. This could work in the favor of your staff, who might have even better career prospects in a larger company.
Full Sale
If “How to sell my lawn care business” has been buzzing through your head while your crews have been out beautifying yards, the first type of sale you might consider is a full sale. As the name implies, you will sell 100% of the business outright, and stay on for a short time to help with the transition to the new owner. A sale can often take 6-9 months to complete, with the transition period lasting anywhere from 3 months to two years. In order to sell lawn care business, define the roles and responsibilities of both the buyer and the seller, and discuss the compensation before you get started.
Partial Sale
A partial sale has you selling a majority stake in the business, generally 70-80%, and then leaving an equity ownership in the business. You will likely stay on to manage for 2-5 years. This is often the best of both worlds, allowing you to put some money in the bank from the sale, while also staying involved in the business and giving you a “second bite of the apple” when it comes time to sell the business outright. If you are ready to sell your lawn care business, a partial sale might be the best for you.
The Future
For those that want to understand how to sell lawn care business in 5+ years, the future is now. Prepare for a successful sale by ensuring that your company’s valuation is as high as possible. To sell your lawn care business, maximize the cash flow, which is the most important element when it comes to a successful sale. The greater the cash flow, the greater the multiple, and this will lead to a higher valuation.
Since you are likely using the money from the sale for your retirement, preparing well in advance will positively affect your bottom line.
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.
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