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What Happens When My Company Is Bought By Another?

by Steve on 02/22/16

With the recent announcement of the merger of TruGreen and Scotts Lawn Service, you may wonder how these type of deals impact our industry. In truth, not a lot. These were already two huge companies and now they have become super huge. But, practically speaking, they will still have many / most of the same people treating lawns.

If you have been happy with these services, I doubt you will see much change. A good technician is a good technician regardless of the name of the company. If, however, the merger is handled poorly, it might lead to a lot of turnover resulting in customers dealing with a lot of new folks.

In my experience, both companies are very experienced with mergers and acquisitions and will likely keep the damage to a minimum. If their business model has worked for you in the past, I suspect it will continue.

We have always based our business on personal interaction and believe this is the key difference between us and the "big guys". This most assuredly will not change. They are not designed for much in the way of personal interaction and have automated pretty much everything they possibly can. Again, they are very effective doing business this way but it comes at a price.

Most large lawn services have over a 30% annual cancel rate. That means that about one in three customers will fire them this year. However, because of the way they are structured, they will still be quite profitable! Our company will have less than a 10% cancel rate this year, with a comparatively lower profit margin. And you know what? I am perfectly ok with that.

My son and I enjoy this business and are willing to invest a little more time and money to make our customers happy. From our customer's feedback, they appreciate our efforts. I hope you all have a great spring!