Brickmen for sale? Wall st has major $$ in landscape companies?

Discussion in 'Business Operations' started by Nj shade, Aug 16, 2013.

  1. Nj shade

    Nj shade LawnSite Member
    from Nj
    Posts: 245

    Apparently brickmen has hired Barcleys and Morgan Stanley to shop them around for a buy out, value in the $1.5 billion, yes BILLION neighborhood for vaule!!! That alone blows my mind! Yes I know they are a monster but OMG!!!also found out which I thought was even more interesting that both Valley Crest and Tru Greene are owned by equity funds, estincaly Wall St firms. With major firms/equity funds (think hedge fund) owning major landscape companies makes me wonder where the value is to them in the companies? Are they really netting that much or is it just a write off for these firms? Tru Greene in my area does work for next to nothing, not good work, but still work. Which points to them driving OUR profit and bottom line down, just so a major fund/firm can reap a nice tax write off against their trading gains, weather it be stocks/real estate/commodities ( crude oil / gasoline futures ).

    Just a little rant and rave on a Friday night...
     
  2. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Posts: 1,544

    You're an idiot if you think private equity buys for a write off.
     
  3. Nj shade

    Nj shade LawnSite Member
    from Nj
    Posts: 245

    Not quite sure if you understand how hedge funds / equity funds work in depth, part of their game at making $$ is also to find shelters and write offs for all the gains. Not saying 100% case in lawnlandscape companies but wouldn't shock me!
     
  4. wbw

    wbw LawnSite Fanatic
    Posts: 5,457

    Nobody buys anything for a write off.
     
  5. Armsden&Son

    Armsden&Son LawnSite Silver Member
    Posts: 2,357

    What's the spread on the "green industry" for the next ten years? Folks that prospect for a living don't just randomly invest....
     
  6. Bryan27

    Bryan27 LawnSite Member
    Posts: 148

    Correct, Profit is the first and most important reason to buy a business. Having a lot of write offs means you have a lot of expenses, not necessarily a bad thing, but making a profit is test #1.
     
  7. TX Easymoney

    TX Easymoney LawnSite Platinum Member
    Posts: 4,071

    There are seversl ways to get value out of something...you can grow the business and not make a profit per se...having it as an asset ...later selling it off..
     

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