What a ValleyCrest/Brickman Merger Could Mean for Everyday Landscape Contractors

Brickman reportedly in talks to acquire ValleyCrest; would by far create industry's largest landscaping company with annual sales in the $2 billion ballpark.

Michael Dell, the CEO of Dell Inc. (computers) and owner of one of the landscaping industry's largest companies, ValleyCrest, is reportedly looking to sell ValleyCrest to another landscaping industry giant, Brickman.

The joining of ValleyCrest and Brickman would create the industry's largest company by far, with annual sales reportedly near $2 billion and branch locations in most major markets from coast to coast. Additionally, ValleyCrest owns U.S. Lawns, a national franchise system providing commercial landscape maintenance and snow removal services. U.S. Lawns is also among the industry's largest companies.

Presently, ValleyCrest is owned by Dell's family investment office, MSD Capital. Late last year, Brickman was acquired by KKR, a massive global investment company with deep roots in private equity. If this deal goes through, KKR will have reportedly invested around $2.5 billion to acquire landscape companies within the past six months.

What this could mean for everyday contractors if the deal goes through

One cutthroat competitor instead of two. Instead of having two corporate giants to compete against, you'll just have one. Continue focusing on what YOU must do to win and keep customers. Remember that most customers are retained or lost at the branch level. So take steps to ensure that you and your people are pricing competitively and providing a second-to-none service experience. To the typical customer, which does exclude certain commercial-type clients who are more concerned with budget than quality, the size of your company doesn't matter at all. What matters is how you deliver on your promise to that individual customer.

Employees on the move. For bigger, regional landscape companies that often go head to head with the likes of ValleyCrest and/or Brickman, this deal could present an opportunity to find new talent to join your companies, as there will likely be some personnel fallout as a result of this "merger".

Uneasy clients. Additionally, merging two companies of this size and scope is never easy. There could be a window of opportunity to land some new clients as potential uncertainties and/or service disruptions arise during the early stages of the merger.

Sell your "main street" status. Finally, the industry's largest company would be owned by investors who shelled out over 2 billion bucks for the opportunity to own it. They're going to want to see growth at both the top and bottom lines, perhaps at all costs, before they try to sell the company themselves. That doesn't sound like an ideal environment to service customers in. Thus, this deal could create an opportunity for the typical contractor—who went into landscape contracting because he loves landscape contracting, not business or investing—to sell what I call his "main street status". People still do business with people. It's easier to see that out in the field with dirt under your fingernails than in a boardroom with ring around your collar.

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