INFORM
AGENDA ARE MERGERS AND ACQUISITIONS GOOD FOR THE INDUSTRY?
As mergers and acquisitions become more common within the landscape industry, we explore whether this has a positive effect on the industry, or whether its impact can be detrimental
David Grace Director and co-owner, Indoor Garden Design
The glib answer is ‘yes and no’. It is inevitable that they can adversely affect small independent businesses by impacting our ability to tender for, or retain, some of our larger clients. We are often frozen out, for example, when large facilities management (FM) companies acquire
MERGERS AND ACQUISITIONS CAN CREATE A FOCUS FOR INTEREST IN THE INDUSTRY, AND THEY ARE CATALYSTS FOR CHANGE landscaping businesses and therefore offer landscaping services (albeit to a poorer standard). The FM sector, however, is struggling, and clients often realise that they receive far higher quality, and ultimately better value, from 8
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directly employing smaller independent landscaping companies. In contrast to larger competitors, which often limit customers’ choices, we can demonstrate our quality, flexibility and innovation. Mergers andacquisitions can create a focus for interest in the industry, and they are obviously catalysts for change. However, they will also result in the fragmentation of the sector into larger and smaller players, which contains risks – including aggressive pricing.
Doug Graham CEO, idverde UK
If carried out in the right way, with the right intentions, then they can benefit the industry. All too often companies set out to acquire businesses for the right reasons but end up getting it wrong. Mergers and acquisitions are good for the industry if the outcomes contribute in a positive way to key drivers, such as: • A better value and stronger service offering to clients – whether public or private organisations – underpinned by industry players that are genuine about employing and developing staff to provide those services.
• Opportunities for people who work in the industry to develop their skills and experience with their employer, and take on new challenges. • Mergers and acquisitions can energise
ALL TOO OFTEN COMPANIES SET OUT TO ACQUIRE BUSINESSES FOR THE RIGHT REASONS BUT END UP GETTING IT WRONG innovation as capable management teams collaborate together to discover better ways of working. This helps offset the views held outside our industry that we are rather traditional and old-fashioned. Provided the larger, merged organisation upholds good values and has a sound strategy, then mergers and acquisitions do benefit the industry.
Ken White Managing director, Frosts Landscape Construction
Acquisition is perhaps a double-edged sword, depending upon the reasons for it and whether or not you are the acquirer or being acquired. www.prolandscapermagazine.com
19/04/2018 16:32