Exit Planning Client Profile

Industry: Landscaping Services
Annual Revenue: ~$3M
EBITDA: ~$250K
Location: Midwest USA

Background & Challenges

After years of casual discussions with Calder Capital’s Sell-Side Director, Garrett Monroe, a landscaping business owner agreed to a valuation of his business. While the business had a limited scope for operational improvements, it was operationally sound with a strong culture. 

The casual conversations began years ago after our client received strong feedback from his wife, who encouraged him to retire and for them to spend more time together. But he was hesitant to sell. Our client loved the design work and the business he built.  

In order to create an exit plan that was suitable for the owner, while respecting his spouse’s wishes, Calder recommended Exit Planning to help the client thoughtfully evaluate and time his next steps.

Challenges:

• Emotional Readiness: He was deeply connected to the business and unsure about his post-sale life.
• Owner Reluctance: Despite being in his 60s and the familial pressure to retire, he wasn’t convinced he was ready to sell.
• Friction from Key Employee: The service manager, though technically skilled,  has been reluctant and disapproving of foreseeable change.

Calder’s Exit Planning Approach

Calder’s Exit Planning Director, Jared Friar, kicked off the Exit Planning engagement with the 50 Value Factors assessment. 

As a result of the assessment, we found that the owner was not hesitant in an exit due to  various deal structures or reaching a certain sales price, his main hesitations to sell were rooted in his emotional connection to the business. This connection caused a reluctance to exit in the short term despite familial pressure to do so. 

Calder focused the engagement on clarity, coaching, and evaluating future buyer scenarios, while setting up actionable goals to appease the familial pressure the owner was experiencing, and acknowledging that the owner’s mindset was the real barrier to exit.

• Owner Coaching & Mental Readiness: Regular meetings helped the client envision life post-sale and assess buyer options.
• Buyer Fit Exploration: Facilitated discussions about internal succession, including the general manager, who had shown interest in purchasing the business.
• Key Employee Advisory: Human Capital Director, Mya Stone, joined to advise on people strategy, resulting in a plan to reassign sales duties, triggered by the reluctant Service Manager.
• Financial Structure Review: Calder recommended a CPA consultation, resulting in affirmation of an optimal legal structure between the business and the client’s real estate LLC.

Results & Next Steps

Exit Planning Director, Jared Friar, wrapped up the engagement with the client and his wife attending the final meeting. They were joined by Sell-Side Director, Garrett Monroe. 

During this final session, Calder walked through the go-to-market process and discussed what ideal timing would be for a potential launch. The client’s spouse was excited and encouraging, while the client appeared conflicted. Toward the end, he candidly admitted, “I just don’t know what I’m going to do after this.”

As a result of the engagement, the client is better positioned for a sale. He remains in contact with Calder Capital and has stated he will re-engage once he’s ready to move forward. In the meantime, he is staying active in the business, focusing on key areas our Exit Planning team identified as areas for value creation. 

With an honest assessment of his business and an executable strategy, our client is positioned to have a stronger presence when he goes to market. Additionally, key conversations with employees and family members occurred, which lay the framework and support system for his impending exit.

This engagement served its true purpose: helping the client gain clarity on his personal readiness. The Exit Planning Institute emphasizes the importance of business owners coming to terms with the reality of a future sale, with nearly 80% of exited business owners stating they “profoundly” regretted selling just 1 year later. 

While the engagement didn’t lead to an immediate listing, it was a success in preparing both the client and Calder for a future transition. Calder Capital is confident that when the client re-engages, it will be with full conviction, setting the stage for a successful exit process.

• Owner Clarity Gained: The client determined he is not ready to sell today and avoided entering a sale process he wasn’t committed to.
• Internal Transfer Explored: A realistic pathway was outlined for a potential future sale to his general manager.
• Sales Role Realignment: The service manager was relieved of sales responsibilities, improving team dynamics.
• Ongoing Relationship: Calder remains in touch with the client, who is committed to revisiting an exit of his business.

Why Work With Calder’s Exit Planning Team?

Calder Capital is a National M&A Advisory firm with a proven track record of success, with 300+ deals closed and 700+ valuations completed since opening its doors in 2013. While other exit planning advisors may claim to know how a buyer will view your business, Calder works with thousands of real buyers and closes dozens of transactions annually. We know what buyers are looking for and what characteristics make certain businesses more successful on the market than others.

Calder is industry agnostic (does not focus on one industry); however, the firm has closed many transactions in the manufacturing, construction, distribution, and business service industries with enterprise values ranging from $1M – $100M. This does not mean Calder limits itself to these spaces, as we recognize all businesses are not the same, and a successful deal does not always occur in a linear fashion. Calder’s success is driven by its client-focused approach, taking the time to understand our clients and the nuance that comes along with each individual business. This is a point of pride, which makes Exit Planning Services a natural fit.

Calder Capital has the people, knowledge, tools, and resources needed to assist businesses with varying degrees of complexity. With Calder Capital’s experience with business valuation and M&A sales, there is a natural opportunity for clients to transition from Exit Planning to being engaged for an optimized business sale all while maintaining continuity within Calder Capital.

Contact Exit Planning Director, Jared Friar, at [email protected] or 616-822-0141 to learn more!

About Calder Capital

Calder Capital is a lower middle market investment bank providing mergers and acquisitions advisory services to business owners, entrepreneurs, family offices, and investors across the United States. Our dedicated team of professionals combines extensive industry experience, technological innovation, negotiation savvy, and key relationships to deliver exceptional execution. Calder’s services include mergers and acquisitions advisory, private funds and capital markets advisory, and business valuations. To learn more, please visit https://www.caldergr.com