When is the right time to sell your landscape business?
Q: I get lots of cold calls about selling my business. I might consider it, but how do I choose the right potential buyer, and how will I know it is the right time?
A: In my recent “Roots of Success” podcast interview with Andrew Gabries, the founder of Go Green Lawn and Pest Control and Andrew’s Lawn and Landscaping, Andrew shared his experience in selling not just one, but two companies. We talked about the intricacies of knowing when the right time is to sell a landscape business. Andrew’s journey offers valuable insights for anyone considering this significant decision.
Reflecting on the decision
Andrew shared that the idea of selling his companies wasn’t initially part of his career plan. “I thought that Go Green would be a company I would sell at some point, but definitely not at that point in my career,” he explained. His decision to sell arose from an unsolicited acquisition inquiry for Go Green. Andrew emphasized the importance of finding the right partner over the highest financial offer, highlighting his need to maintain company culture.
The role of preparation
Preparation played a crucial role in Andrew’s readiness to sell. He credited his involvement in ACE Peer Groups and coaching for setting him up for success.
He built a strong team so the business operations weren’t so reliant on his presence, which allowed him to step away several times a year to work on the business with his peer group. He made sure his bookkeeping and financials were accurate and benchmarked his performance with his fellow ACE Peer Group companies.
This preparation ensured that the due diligence process, which lasted approximately 90 days, was less burdensome than expected due to clean financials and established systems.
Personal considerations
Selling a business is a deeply personal decision. Andrew mentioned that his children were still young, and he had initially thought he would sell the company when they were off in college. He also had built a strong culture and made lifelong friends with the people at both companies. “It’s a personal decision — are you ready to walk away or stay involved to build it?” he said.
Andrew remains actively involved with Andrew’s Lawn and Landscaping, even after selling it in April.
“I’m still an employee at Andrew’s Lawn and Landscaping, still leading the team. And we’re continuing to grow in the Philadelphia region. The team is still branded as Andrew’s Lawn and Landscaping, and nothing has changed with anyone’s pay. Nothing has changed with anyone’s benefits. Nothing has changed with our customer base. Everyone has been notified. Everyone’s happy. We’re just continuing to service properties and work on growing.”
Key takeaways
Andrew’s experience offers several key takeaways for those considering selling their landscape business:
1. Process and systems. Set up your sales, operations and finance departments with processes and software that make your company effective.
2. Scalability. Ensure that the services offered are scalable in your market.
3. Team culture and leadership. Develop your leadership team. Invest in team culture and training so that your team can grow with the company.
Final thoughts
Andrew’s journey underscores the importance of preparation, finding the right partner and considering personal factors when deciding to sell your business. For Andrew, ACE Peer Groups helped him prepare as he developed his people, processes and financial acumen.
Andrew also utilized the deep bench of business coaches at McFarlin Stanford. As he wisely advised, “You don’t know what you don’t know, and there are no dumb questions.”
Make sure to have a trusted adviser (or team of advisers) that has your best interests in mind. There are many factors to consider, including purchase price, due diligence, contract negotiation, tax implications, how your team will be taken care of on the other side and the exit strategy for you.
You can listen to my entire conversation with Andrew Gabries on the Roots of Success podcast available here.
