Large Commercial and Residential Landscaping Company with Real Estate
Industry
Business Broker
Situation
The owner of the business acquired the business directly from the previous owner as an investment years ago. He was introduced by a mutual contact to Sarah Grossman, Principal of BayState Business Brokers as he sought to sell off some investments, including this landscaping and lawn care business.
BayState Business Brokers’ Approach
Sarah Grossman prepared to take the business to market, knowing there likely would be great interest in a landscaping business that served both the residential and commercial markets that included a large piece of real estate that the company operated from.
Under the current owner, equipment had been significantly upgraded and processes improved. A general manager ran the day-to-day operations and was informed and involved in preparing for the sale from day one.
The business listing received tremendous interest with more than 75 non-disclosure agreements signed including interest from individual and industry buyers. Given the amount of interest in buying the business, Sarah Grossman scheduled and managed a Town Hall Zoom meeting for all committed parties to learn more about the business and to meet both the owner and the general manager.
It was particularly helpful to have the general manager involved throughout the process. He responded quickly to requests for information and was accessible during the Town Hall for prospective buyers to hear directly from him given his important role in running the business.
As business broker Sarah Grossman guided the seller and evaluated prospective buyers, a top buyer emerged, the owner of Jim’s Landscaping, James Evans. He had worked with BayState Business Brokers previously, having purchased Jim’s Landscaping through the firm a few years prior. He was a great fit since he had relevant experience, was prequalified for financing and presented a clear strategic vision for acquiring the business to expand his geographic reach and enter the commercial landscaping business.
Additionally, Evans further distinguished himself throughout the process in consistently demonstrating his genuine interest in making the deal work including being reasonable on terms, due diligence and being responsive throughout the process.
The seller was appreciative of finding a prospective buyer who was committed to taking care of his employees and was pleased to find a buyer where there was synergy with the general manager who would be continuing in his important role.
Sarah Grossman quarterbacked the process, managing all the details and potential roadblocks that can hinder the process of closing on a business and associated real estate.
Results
From signing the letter of intent (LOI) to closing, the sale of the commercial and residential landscaping and lawn service business took just days over three months. The timing was especially important as the closing in March enabled the new owner to be well positioned at the start of the spring season.
The buyer worked with a lender that BayState Business Brokers had introduced to them in the previous purchase. Sarah worked closely with both the seller and buyer to work through the financials and cash flow forecasting to assist the bank in the financing of the purchase. Additionally, Sarah assisted in deal structure details and treatment of assets for both financing and tax purposes, working closely with the team of attorneys and advisors.
Due to the significant amount of physical assets including vehicles and trailers, the BayState Business Brokers team, including the junior analyst, jumped in to ensure an efficient process of aligning titles and VINS for the closing attorney to keep the closing timeline on track.
The seller was pleased with the result having received a competitive offer and knowing his team would be in good hands with an owner who approached the business opportunity as a win/win from day one.
The buyer was thrilled to secure the opportunity to expand geographically and enter the commercial landscaping business to support his growth goals.
What Our Clients Say
James Evans, Buyer
