By Jerry Schill
From the August 2024 Issue
The landscaping and snow and ice removal industry has become fragmented over the years, as low barriers to entry and entrepreneurial spirit enticed a generation of owner/operators to start their own business in pursuit of the American Dream. Today, there are more than 640,000 landscaping companies in the U.S. and that number continues to grow by about 3% per year, according to IBISWorld.
Many landscaping companies are local, family-owned businesses run by Baby Boomer entrepreneurs in their 60’s and starting to think about how and when they can retire. Some owners may not have a clear exit strategy for when it’s time to bow out. Perhaps their siblings, business partners, or co-owners have different ideas and timelines in mind for their own retirements. In some cases, their children or other family members might not be interested in taking over the business.
(Photo: Adobe Stock / kittyfly)
Creating An Owner Network
An Owner Network creates an enormous opportunity to bring local, independently owned landscaping businesses together under one umbrella, and create a best-in-class organization that keeps sellers involved. This model provides continuity and a smooth
transition as owners can offer strategic recommendations, while gaining confidence that the business they created and nurtured for so many years will continue to flourish until they are ready to fully retire.
An Owner Network creates an enormous opportunity to bring local, independently owned landscaping businesses together under one umbrella, and create a best-in-class organization that keeps sellers involved.
Bringing independent businesses into a unified family of companies also allows them to tap into greater financial resources. Often, small businesses do not have the resources to invest in better technology and accounting systems, operational planning, dispatch, CRM software, sales and marketing, and future investment opportunities. Consolidation drives economies of scale so the company can expand and offer better service and greater support to multi-location customers and clients in new areas.
Choosing The Right Partner
When considering whether to sell a landscaping business, it’s crucial to choose the right partner. Merging with another small local landscaping company might be a good exit strategy for some owners, while others may want to target larger companies with greater financial backing and resources.
Possessing those additional resources is part of the reason why Schill Grounds Management accepted investments from private investment management firms Balance Point Capital Advisors, LLC and Argonne Capital Group. We knew it would be an advantage we could offer to our partners.
Access to new capital can drive growth for businesses that may have had previous constraints. Investments in new mowers, plows, trucks, and other heavy equipment can help improve operational efficiency. Sophisticated financial software makes accounting, bookkeeping, reporting, and cash flow management more streamlined. Top-of-the-line CRM platforms and professional sales, marketing, and media relations teams help attract and retain customers and enhance reputation.
Supporting Future Growth
One of the strongest reasons to consider combining with another company is the potential for future growth under an established executive leadership team. Since 2020, Schill has made more than a dozen strategic acquisitions to expand its service territory across the upper Midwest and Great Lakes region, Pennsylvania, New Jersey, New York, and Canada.
Many owners who transitioned their companies to Schill and entrusted us to assume management continue to provide valuable insight on local operations, customer needs, and market dynamics. They hold important advisory and leadership roles in our “owner’s network” as they support integration. These owners help bring our teams together and adopt a shared culture that supports our values. Schill now operates 29 branches and supports 5,000+ commercial customers across many industries.
The Grass Really Is Greener
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Today, we are proud to have a team of 1,200+ talented and qualified employees, and we are always looking for more. We offer competitive pay and benefits, as well as comprehensive training programs and career advancement opportunities so people can develop new skills and pursue career paths that are meaningful and rewarding to them. Some of the owners of companies we acquired are happily retired now and have relinquished their operating roles to the next generation of leaders.
We believe consolidation is already helping our industry become healthier, as new investment capital and strategic planning allow businesses to thrive and accelerate growth. We will continue to drive consolidation to create a stronger company with a positive impact.
Much like the way we carefully tend lawns and landscapes to optimize overall health and performance, our strategic acquisition planning and prudent investments have allowed our company to prosper and shine. And we’re just getting started. We are confident
that the best is yet to come.
Schill is the Founder & President of Schill Grounds Management, a Cleveland-based company that has grown to become one of the largest landscaping and snow and ice removal businesses in the country. In addition to growing organically, Schill is driving consolidation in the highly fragmented industry by acquiring independently owned and operated businesses and creating an “owner’s network” that keeps former owners involved in running the business and providing strategic recommendations until they are ready to completely retire. Schill operates 29 branches across six regions in the Midwest and Canada and supports 5,000+ commercial customers across a variety of industries.
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