PDA

View Full Version : Bigger, merging, stay small, or quit??


meets1
09-29-2006, 09:59 AM
Look at the industry - every company is merging or being bought out buy another company. Husky buying redmax - toro/exmark. Simplicity - ariens. List goes on.

Do we have professional's talk to the local competitor and talk about a merge deal to enhance ourselves, the company and better service to the client? How many "mowing crews" or landscape crews can keep going at the rate there and every year see a few more "new" biz start ups. Lower price, bad work, etc.

I know one guys who is in the maintaince work for all commercial. Landscape, mow, spray, snow removal. He was tired of the lossing out to cheaper bids so he became a dealer of exmark and now sells to the competiton and still maintains the commercial accounts.

meets1
10-01-2006, 07:33 PM
No ideas or comments on this??

Az Gardener
10-01-2006, 08:23 PM
There have been field operations that have merged. I was involved in the Landcare roll up that I think although it is still around as another name it was a flop.

The Industry, at least the field operations part is Immature. There is a giant void between the Brickmans, Vally Crest's of the world and everyone else. The business is very different from region to region and lets face it there is almost no barrier to start up.

This takes most of the potential middle management/supervisors out of the equation and puts them out in the field as start ups. This makes it more difficult for a company to grow in the traditional sense. Like everything I think timing is key. There comes a time in the business development that a company is just set to take that next step, if the moment is missed I think it is gone.

Especially as an owner you get tired of trying over and over to take that next step, putting yourself out there mostly to give everyone else importunity. If you are making a comfortable living what is the incentive to take the risk to become what, more comfortable?

Manufacturing/production is another animal, I would expect to see more mergers in that arena. I think the big boys have learned their lesson trying to merge similar field operations in different parts of the country. At least for a few years. If someone decides to try again I sure their will be people willing to take their money.