When you are ready to sell your lawn care business, you should first take a few crucial steps to ensure a smooth and successful sales process. At Green Group, we have developed an easy-to-follow seven-step guide to help you prepare and ensure you receive the best possible outcome.
1. Determine the Value of Your Lawn Care Services
The first thing you need to do is determine the value of your business. Understanding your lawn care and landscaping service business value will help you set your sale price and maximize your profits. Determining the value is more than just looking at your annual revenue. Work with your CPA or a lawn care or landscaping business valuation consultant for an accurate valuation.
2. How Do I Value My Lawn Care Business?
There are several methods you can use to get a rough estimate of the value of your business, including multiple earnings methods, asset-based approaches, and market comparison. These methods may not provide a precise valuation, but they will give you a general idea of the value of your business.
Factors that impact your sales price include the size of your customer base, revenue, profitability, assets and liabilities, cash flow, and competition. For a guide to help answer your question of “How much can I sell my small business for?” see BusinessesforSale.com’s “How to Value a Business for Sale.”
3. Get Your Business in Order
It is time for due diligence and cleaning up your business and records. With a little effort, your business will be attractive to lawn professionals ready to start their own small businesses.
Gather your financials. Update your accounts receivable and payable spreadsheets, calculate your current net profit, and gather all your financials, such as balance sheets and tax returns.
Itemize your assets and working capital. You need this for your valuation so take the time to itemize all your business assets, such as real estate and lawn maintenance equipment.
Organize your client lists. Indicate seasonal, year-round, residential, or commercial clients and new customers.
Clean up the business. Do whatever it takes to make your business attractive to potential buyers. Clean out your storage areas and shine your equipment; discard expired pesticides, fertilizer, weed control, and broken sprinkler heads; make any necessary repairs; and generally improve the appearance of your business.
4. Put the Word Out That You Are Selling
In 2021, landscaping services industry sales were $107.5 billion, and there are sure to be hopeful business owners lining up to get in on the action. There is no option that is off-limits when it comes to touting your service business. If you want your employees and the competition to know about your desire to sell, word-of-mouth is one of the best ways to find an interested business owner – talk your business up to everyone you know.
Here are a few suggestions to spread the word:
- Social media posts
- Email marketing and targeted advertising to other business owners
- Network with other business owners and professionals in the landscape industry
- Post fliers on community boards
5. Work With a Business Broker
You may want a business broker if you have an established business with a track record of financial success. Brokers can help set the price of your business, negotiate the final sale, and handle all of the necessary paperwork and legal documents. Work with a business broker with several years of experience buying and selling businesses similar to yours. They have access to a network of buyers, including private equity firms and investors, can facilitate mergers, and will maintain confidentiality.
6. Do It Yourself
For a small lawn care company with minimal equipment, you may want to manage the sale of the business yourself. You benefit by having complete control over the sales process, getting a higher profit (no commissions to worry about), and keeping the terms of the sale confidential. The DIY process may be more stressful since you will manage all aspects of the sale yourself.
7. Create a Professional Partnership with Green Group
Creating a professional partnership with a company like Green Group is a great way to exit a business and maintain its legacy. A professional partnership can provide your clients with continuity of service, a smooth transition for staff, and access to resources you may not have had. Green Group specializes in buying lawn care businesses, so it can be a great way to exit with minimal disruption to your clients and employees.
Green Group’s Process
At Green Group, we partner with legacy businesses in the lawn care and landscaping industry that have a history and reputation for not only providing the best lawn care service but also the best customer service as well. If you’re interested in moving on to the next chapter of your business and have the desire to sell, we’re here to create a smooth transition that meets your goal objectives with our 6-step process. We enable local businesses to continue to deliver the same top-quality service and expertise they always have backed by the support and management of our national team. Contact us today to learn more about how we can help you sell your lawn care business and invest in your people and processes.
