The press releases that often come out after the sale or merger of snow industry companies give the basic outline of the deal: Company A bought/merged with Company B; both will now operate under the name of Company A; the CEO of Company B will now be VP of Company A, etc. While useful information, these summaries sanitize what is usually a grueling process—professionally and personally—for the companies’ founders and for their teams.

The reality is that any merger or sale between two companies is a complex endeavor. There is usually an initial courtship to explore the benefits, questions about financials and culture, deep thinking about the ramifications, worry about and on the part of employees, legal paperwork, and then more worry and details to work through even after the deal is done.

Motivating forces

Why take on a merger or acquisition if the process is difficult? Often the motivations outweigh the challenges. "I had major concerns and many sleepless nights about making this move. It is a life-changing process and not something you just jump into," says Long Island-based Mahoney & Associates founder Don Mahoney Jr., who last year partnered with Kian Capital and Diamond Landscaping.

His rationale for undertaking this process was to continue to grow the company and his team. "This will allow our team to grow the company and give career advancement opportunities to my team that I could not have done on my own without borrowing the capital personally. The partnership allows us to accelerate many of our long-term goals."

Last year also saw Strauser Nature’s Helpers in Pennsylvania become part of Schill Grounds Management (SGM), based in Ohio. Zech Strauser says he started down that road with the realization that all companies, including the one he founded a quarter-century earlier, inevitably find new owners.

"All companies have to have succession plans, whether I did an ESOP or some of my employees took it over, or maybe I sold to a local competitor or to the biggest of the big industry companies—at the end of the day, there’s one guarantee: we’re all not going to be here one day, so the idea of thinking everything is forever and walking around in this bliss, that isn’t reality." That fact, says Strauser, led him to start doing more estate planning, and to begin charting the best path toward continued growth for his company. In the end, he decided that partnering with SGM made the most sense.

SGM President and CEO Jerry Schill says it’s natural for owners to reach a point in their careers and begin to think about a transition plan and want to explore their options. "It’s not uncommon for founders to feel like they have hit a ceiling with their business and start looking for help. Often they are not ready to exit the business, so they begin thinking about aligning themselves with a strategic partner."

That was the case in early 2024 when Massachusetts-based Case Facilities Management Solutions and Landscape Effects Property Management in Ontario merged. "We’ve been talking about merging for about a decade," says Jason Case, CSP, ASM. "I think it was the right time for both companies…it was almost a perfect alignment of culture, service delivery, customer base, target audience, processes." Both brands will remain, with Case serving as CEO of the combined company and Paul St. Pierre, founder of Landscape Effects, becoming a shareholder board member, while also helping to manage the integration.

The result, St. Pierre believes, will be not simply a larger enterprise (servicing some 21,000 sites in two countries), but, more importantly, a stronger one. "We believe that by joining forces, we can better address the evolving needs of our customers and stay competitive in the market," he says. For example, St. Pierre says that "gaining access to Case’s extensive resources, including technology, talent and market reach can enable us to accelerate our product development, expand our customer base, and drive greater value for our stakeholders."

St. Pierre encourages anyone undertaking the sale or merger of a company to understand their goals very clearly. "Whether you’re looking to expand your business, exit the industry, or strengthen your market position, defining your goals will help guide your decision-making process and ensure that you pursue opportunities that align with your strategic vision," he explains.

Getting aligned

A solid alignment between the entities and people involved is the foundation of any successful transaction.

Case says it was the degree of communication and sharing between himself and St. Pierre, as well as the clear alignment between their brands, that put him at ease about merging: "Because Paul and I were so open and honest, I didn’t have major concerns about merging. I have high respect for the professionals they have on their team. Both companies have super strong brands in each marketplace they serve—our cultures were very parallel."

St. Pierre says he and Case had a lot of discussions on how to harmonize company cultures, communication channels, and strategic objectives to foster collaboration and unity within the merged entity.

Similarly, Strauser says that one of the reasons he opted to partner with SGM is the level of dialogue he had with Schill. "There are a lot of similarities in our careers, and I think that helped a lot," he says. That dialogue revealed many other complementary aspects of the two companies, including service offerings and geographic footprint.

Schill agrees that these were important considerations in moving the deal forward. He emphasizes that acquiring (or merging with) a company needs to make sense on a case-by-case basis. Schill uses acquisitions as a tool to enter new strategic markets. "We’re focused on the Midwest and the Mid-Atlantic regions. These are markets we understand. Geography, the weather, people, and our ability to support partners after the sale," Schill explains. He says it’s important to remain focused on your core competencies. "One reason we’ve been able to maintain best-in-class margins and organic growth is because we remain disciplined and strategic on where we go to market."

Beyond business mix and the strategic qualities of a deal, Schill says there is nothing more important than ensuring there is a talented management team in place: "People are the primary driver behind our acquisition strategy. It’s extremely difficult to organically open a branch in a new market without a strong bench. Identifying a partner that has a strong culture and core values that focus on people, ensures a much smoother, less disruptive transition after the close."

Maine-based Piscataqua Landscaping & Tree Service has acquired six companies since 2017 to grow its brand and market footprint. President Justin Gamester, CSP, says you never know when an opportunity will arise, so you have to be ready. "We make sure our core business is operating well and then we try to expand that to new locations or bring new team members into the fold. The door is never closed, but we always put our team and our customers first with an emphasis on continuing to deliver on quality and services, so it has to be right!"

Difficult details

Mahoney encourages anyone considering selling or merging their company not to rush and to fully prepare for the process.

"Take lots of time and think long and hard about the decision, as it will be life changing," he says. "The overall process, and specifically the diligence process, is a massive undertaking—exhausting and mentally draining. It is not fun at all but necessary. It will challenge your mental focus and ability to stick with it."

Mahoney says "deal fatigue" will set in at about 85% completion and the stress might make you want to walk away. "This is where it is so important to have a team of advisors around you to get you back on track and refocused." (Sound familiar to anyone who has worked a major storm event?!)

St. Pierre says: "In the lead-up to a merger, it’s natural for concerns to arise regarding various aspects of the integration process, including the impact on the team, brand, services and organizational culture." Managing these concerns effectively, he advises, "is crucial to ensuring a smooth transition and maximizing the potential benefits of a merger."

Schill has a team dedicated to making the integration experience as efficient and transparent as possible to reduce friction in the process. "We operate from a well thought out, detailed playbook, and there are people on our team assigned to each one of those functions," Schill explains. Even with all the systems and expertise in place, the process is just naturally complex and time-consuming. "We believe in a very hands-on approach," he adds. "We’re relationship builders, we like to show up in person during the process and show them we care enough to be there. Buying a business is the easy part. Getting the operating systems deployed and earning the trust of our new team and the communities they serve is the challenge. And that still takes people working with people."

The people part

As difficult as it is for an owner or top leaders to execute a deal, the impact extends to the companies’ teams. Concerns about how a sale or merge will affect team dynamics, job security, and morale are common, St. Pierre cautions, noting the importance of transparency and communication with the teams throughout the deal. "Providing regular updates about the merger process, sharing information about the company’s vision and strategic objectives, and offering opportunities for team members to ask questions and provide input were paramount for me to help alleviate anxiety and build trust," he says.

St. Pierre adds that the focus on the people needs to continue after the deal is complete. In his case, he notes, "Jason and I built our business in parallel over the last 12 plus years; we already knew we were compatible in regard to our brands. But merging two companies with different organizational cultures can present challenges in terms of alignment, communication and collaboration. For us it was important to acknowledge and respect the unique strengths and values of each culture while also identifying common ground and shared goals."

Strauser took a similar approach, noting he didn’t want to pretend to be "some mastermind striking a deal behind closed doors and then surprising everyone one day." Instead, over the course of a year, he incrementally brought key team members into the process, beginning with his controller. "She was always a part of knowing all the different angles I was approaching, so she was always part of the conversation. At times, she might have wished she wasn’t, because I’m sure that was kind of a heavy feeling to have on her shoulders."

When a letter of intent was finally signed, Strauser says he was able to share the news with the entire company at a morning meeting. Despite ensuring everyone that their jobs were secure, and that he would still be around to help them, Strauser learned that it took a continual process of reassuring staff for the message to be fully received. He also chose to share some of the deal proceeds with every member of the team based on their company service time. "That was a really prideful part of the whole process for me, to share some of this with the entire company," he states.

After the ink dries

There’s a natural inclination to feel like, once the papers have all been signed, the hard work is over. But the integration between the two businesses still needs to take place. And, perhaps more surprisingly for company founders who have ceded control to whatever extent, there is some processing that needs to be done as they explore what their own futures will look like.

Mahoney remains active in management and has been able to focus on the bigger-picture aspects of the business, which excites him.

"The transition has been very smooth, and it has been exciting to have a larger team around me with a true partner to help support our operations as we continue to grow," he says. "It was not an easy task and very stressful to make the final decision on the partnership. But I look back a year in with no regrets, and know I made the right decision for myself and the team."

Strauser feels that one of the most challenging aspects is working through the emotions about the undertaking: "In hindsight, I probably would have met with someone, like a coach, to say ‘What happens after the deal? How do I start mapping the things that are going to go on emotionally?’" He adds that it would have been helpful to write goals for himself, his family, the team and the partnership "and get a little bit more in front of it."

Still, he encourages those contemplating a sale or merger to prepare as best they can. Even for owners who remain involved post-deal, there is a change to contend with as they take on new roles. "My new word to describe it is dynamic," Strauser says. "It’s not necessarily positive or negative, but it’s dynamic."

Ready for market

They say in sales you should ABC—always be closing. As a business owner, it might be better to ABS—always be salable.

"One thing I’ve learned over the last 30 years is that every business should be built with the intention to sell. It’s never too early," says Schill Grounds Management President and CEO Jerry Schill. "When you’re growing your organization, you need to make sure that your business is being built to stand the test of time." Sustainability is the key to salability, he emphasizes. "If you have a business that’s doing $5 or $10 million a year, and you don’t have a solid management team in place or standardized operating systems, you are not going to maximize the value of your business."

Putting the right systems and team in place makes your company more attractive to potential partners, he explains. "When we begin a process with the seller, we are evaluating and trying to identify change agents and the future leaders of the organization. Our greatest responsibility as owners is to ensure there is a transition or business continuity plan in place for the organization."

Businesses are more sophisticated and complex than ever before, so you need to begin planning for a transition well in advance of a sale, Schill adds. "It is never too early to start thinking about your succession plan. Everybody’s circumstances and goals are different. Lean on your family and trusted advisors during the process."

Patrick White has covered the landscape and snow and ice management industries for a variety of magazines for over 25 years. He is based in Vermont. Contact him at pwhite@meadowridgemedia.com.