At the start of the pandemic, the team at DJ’s Landscape Management in Grand Rapids, Mich., heard that some of their competitors were ready to leave the trade or retire. So, they began looking at the opportunities those exits might create for their company, says Jeff Kladder, company president.
“We started digging into it and asking, ‘What does it look like when they’re talking about moving on, and how do they do that?’” Kladder says. “We wondered if maybe we could be part of their succession plans if they’re looking to transition their companies.”
DJ’s has acquired five companies during the past four years and plans to continue making that part of its story going forward. This strategy has allowed the company to open in new markets across Michigan and brought it to $79 million in annual revenue, landing it at No. 47 on the 2024 LM150 list.
When evaluating a possible acquisition, Kladder says the company sees if there’s an opportunity to grow the customer base and if services align with DJ’s current offerings. Once it acquires a business, it works to bring it under its existing umbrella but doesn’t make any major changes initially. Instead, DJ’s focuses on retaining employees, maintaining a level of stability and building trust, with a long-term goal of transitioning the acquired business into its own within 12 to 18 months.
“Even though we know that we’re coming in with positive intentions and the desire to see the team grow, it takes time for the team that’s on the acquired end to see that come to fruition or really earn that trust,” Kladder says.
Taking ownership
With more than 500 employees, Kladder says DJ’s Landscape Management strives to instill a sense of ownership and accountability by breaking the team into smaller groups, whether that’s by division or branch.
DJ’s provides landscape management, landscape construction, irrigation, snow/ice management and plant health care services to a largely commercial customer base (94 percent). Its remaining customers are government/municipality (5 percent) or residential properties (1 percent).
The company also works to retain employees by providing them with opportunities to grow their careers. It does that, in part, by expanding in its existing markets so the team has the chance to develop. It’s about nurturing both the employees and customers it currently has, Kladder says.
“We don’t want to be in a situation where we lose people out of the bottom as quickly as we add them on the top,” he says.
Trusted mentors
DJ plans to expand outside of Michigan into more of the Midwest, but Kladder wants to ensure they maintain the same level of connectivity across state lines.
“The motto here at DJ’s is, ‘Four seasons, one team,’ so it’s really trying to make sure that, even though we are going to be over a larger geographic area, we’re not losing that one-team approach,” Kladder says. “We don’t have a desire to be 12 different companies running in parallel. We have a goal to build one great company.”
DJ’s recently developed a board of advisers from different industries, and Kladder encourages others looking to grow to connect with professionals who can serve as mentors. “Find someone who has done that journey before, even if it’s not in the same industry,” Kladder says. “Ask them what struggles they saw and what hurdles they had to overcome.”
When looking to expand, Kladder suggests other professionals review their current systems, technology and overall structure to ensure it can support the desired growth.
“You’re building for what you want to be and not necessarily what you are,” Kladder says. “There’s a balancing act to make sure you’re not bloated from where you’re at today but also prepared for where you go tomorrow.”
