Tree service businesses are beginning to experience a significant trend towards private equity consolidation, marking the start of a transformative wave in the industry. Understand the selling points that peak buyers’ interests and learn how investment bankers can help negotiate the most profitable deals for sellers.
TIPS TO DRIVE UP THE VALUE OF YOUR COMPANY
Financial Stability and Scale
Demonstrate that the company is operating efficiently while exhibiting a steady growth pace. Businesses are at scale and experiencing 15 -20% EBITDA margins highly desirable.
Location and Reputation
Tree services in the Southeast offer year-round business opportunities. Metropolitan areas like Atlanta and Charlotte enhance company’s value because of growing populations, extensive tree canopies warm weather. Another selling point is longevity market high customer satisfaction.
Customer Diversity
Buyers prefer businesses that offer a wide range of services to diverse customer base. Showcase offerings beyond tree removals such as pruning and plant healthcare which yields high profit margins repeat business. Promote mix residential commercial clients.
Staff Expertise
Take inventory of your employees and spotlight reputable certified arborists, experienced tree climbers dedicated grounds crews.
BENEFITS OF HIRING AN INVESTMENT BANKER
A reputable investment banker will secure the highest value and the best deal terms in the most efficient process that maximizes financial security and minimizes liabilities. They should bring together the terms and tools needed to negotiate the best deal, allowing the seller to focus on managing the daily business operations.
Higher Valuations
University of Alabama study found that sellers who hired an investment banker received valuation and premiums of about 25%.
Great EBITDA Margins
An analysis of 4,000+ transactions found that sellers who hired an advisor obtained an average EBITDA multiple 1.5x higher.
HOW HANCOCK ADVISORS CAN HELP
Our Investment Banking and Transaction Advisory professionals strengthen the sellers’ negotiating powers while giving back time to owners for managing their businesses. Hancock Advisors is focused on these solutions:
- Guide the diligence process and keep lawyers on track.
- Work through issues that arise throughout the process.
- Position the company’s strengths and address concerns upfront.
- Broaden the field of potential buyers.
- Generate competition between buyers
- Manage auction process on an efficient timeline.
- Negotiate on behalf of client to achieve highest possible purchase price
CONTACT US
Successful deals demand a balance of thoughtful deliberation and informed decisiveness. Each situation is unique, and we tailor a plan to your preferred outcome. Call us to discuss your deal goals.
