Archive for the ‘News’ Category

Three Point Group facilitates the sale of Town & Gardens, Ltd.

Tuesday, May 3rd, 2011

New York, April 20, 2011 – Town & Gardens Ltd a premier landscape installation and maintenance company operating in Manhattan, New York City has concluded the sale of their business to a strategic industry buyer. Town & Gardens Ltd and the acquirer are both regular PLANET award winners for their design, installation and maintenance services.

Three Point Group, Inc. was engaged by Town & Gardens Ltd in 2008 to establish a transition and succession plan for the owners with the idea that they and the employees would continue to work for the company. The plan created with key employees and facilitated by Three Point Group, Inc. resulted in the sale of the company this month. Three Point Group, Inc was the primary advisor on the deal including the search for and identification of the buyer, the negotiations on price and deal structure and the consummation of the purchase agreement. The buyer is a long time industry leader - Ultimate Services Professional Grounds Management, Inc. based in Wolcott, CT.

The combination of these two companies makes great strategic sense with overlapping client and services business and opportunities in the Manhattan and Connecticut residential and commercial markets.

The owners of Town & Gardens will remain with the company and assist in the integration of business systems and sales growth. Both companies are excited by the potential created by this deal and look forward to the synergies that will enable rapid growth in the future.

Don Sussman, President and largest stockholder of Town & Gardens Ltd. : “Although we had a very strong company that generated a lot of interest, finding a buyer that had similar values and embraced our company culture was the critical factor in making this transition happen. Only a few weeks into our new structure we are already seeing the wisdom and benefits of this approach.”

John G. Chiarella, Jr. President and CEO of Ultimate Services: “ We could not be more pleased to unite our families with those of Town & Gardens, Ltd. The synergies we had hoped to realize have been more than surpassed in the short time we have been together. We are excited about the future of what our companies can achieve through our joint efforts, and are looking forward to fulfilling our mutual goal of being the premier service provider in the southeastern Connecticut / New York City region.”

Town & Gardens, Ltd. will continue to operate in the Manhattan NYC offices as usual.

For more information:

Three Point Group, Inc.

Kevin Kehoe, of Three Point Group, Inc. advised on this transaction. Three Point Group works with green industry business owners to create, execute, and monitor plans that help businesses and their owners grow smarter, maximize business value, and create wealth by executing an exit strategy. For more information visit: www.3pgconsulting.com : Kevin Kehoe, kevin@3PGConsulting.com or (714) 401-2389

Town & Gardens Ltd.

Established in 1995, specializes in commercial and residential landscape design, installation, maintenance, and other related services. For more information on Town & Gardens Ltd. visit www.townandgardens.com.

Ultimate Landscape Professional Grounds Management, Inc.

Established in 1971, landscape design, installation, maintenance, and other related services for both commercial and residential properties. For more information on Ultimate Services, Inc. visit www.ultimategrounds.com.

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Three Point Road Map Business Strategy and Execution

Monday, September 20th, 2010

 

You may have a strategic plan, but this doesn’t mean you have a strategy. A strategy does one thing – it increases enterprise value. Enterprise value is the financial worth of your business, and is calculated by multiplying EBITDA by an EBITDA multiple. Your strategy must address this simple mathematical reality. The only way to achieve this goal is execute a competitive advantage in three key areas – customer, organization, and systems strategies. And if you haven’t recognized it yet, the business platform upon which you are standing is burning. What worked in the past WILL NOT work in the future. You need a new strategy. That’s where our ROADMAP comes in.

September ROADMAP graph

HERE’S HOW WE DO IT…

Step 1: Determine your current enterprise value

Step 2: Compare your business performance to critical high performance customer and revenue benchmarks : average job size, retention, bid/sale volume, sales price/avg. wage rate

Step 3: Compare your business performance to critical high performance people and organization benchmarks : staffing/sales volume, sales/sales staff, performance pay dollars/base pay dollars

Step 4: Compare your business performance to critical high performance operation and financial benchmarks : budget hours/actual hours, shop cost/revenue, GP margins, NET margins

Step 5: Project future winning valuation for your business

HERE’S WHAT YOU GET…

· Current Business valuation

· Three year financial and operation plan to get to your number

· Detailed comparative benchmark analysis with key recommendation

· Strategic business plan with step by step execution plan and timelines

HERE’S HOW IT WORKS…

1. Sign up for our RoadMap program

2. Provide us with information per our Roadmap Prep List

3. Conduct conference call on your valuation and benchmark results

4. Meet with 3PG Team (Frank, Jeff, Kevin) for 1.5 day work out

5. Receive final strategic project plan

WE HELP YOU GET REAL AND MAKE THE TOUGH DECISIONS TO ADDRESS THE BURNING PLATFORM AND THE GAP BETWEEN CURRENT AND FUTURE-ENTERPRISE VALUATIONS

Whether it is sales growth, profit improvement, acquisition and/or finding the right buyer for your business, Three Point Group has the answers to your burning questions! With over 100 years in industry experience working with over 300 of the country’s top companies, we are experts in helping you get off the burning platform and make the right strategic moves to increase your enterprise business value.

$15K all included for the valuation (basic), projection, benchmark report, strategic plan and 1.5 days onsite with expenses included

 

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Be prepared!

Tuesday, July 20th, 2010

In our travels around the country, it has been pretty much the same story – new construction is way down, services however, shows some stability. Unemployment in construction hovers around 24%, upper end residential, public works (stimulus driven), and institutional markets remain active even though prices are estimated to be off 2008’s high by from 10 to 15%.

 

Certainly not what we wanted to hear, but there is activity and where there is activity there is opportunity. This puts the ball squarely in our court – we are in control – our ability to plan and to execute will prove to be the linchpin of our success.

 

If we haven’t already, now is an opportune time to put our planning hats on - mid

summer when from a strategic standpoint you will be addressing two important issues on our plates:

 

            1. Updating and revising the plans for the current year

            2. Creating the strategic initiatives for the coming year

 

First to the issue of revising this year’s operating plans. We have a rolling budget which looks at the twelve months of this year by month.  We are at mid-year, so we should have 6 months actual performance plus the remaining 6 months projection, updated for how we see the year completing. Take a hard look at the second six months – make sure that the results we expect are reasonably achievable and not only possible in heaven. This updated picture is probably the best ‘early return’ of the year end results we can generate.

 

Reason why? If we are maintenance, we know what is renewed, what is sold, what is likely in the pipeline for starts in the next 4 to 5 months – we also know the enhancement activity which is likely to finish the year. If we are installation, we have our backlog and our pipeline for what is likely to be signed for job starts in the near term. Follow the same process for revising our direct cost and overhead expectations. If our information is solid, we can anticipate our year end results to within a surprising degree of accuracy. Now how good is that?

 

If we do not like where we are slated to end up, change course! We have 5 to 6 months to make a difference. If we like where we are headed, make sure everyone on the management team is plugged in and make it happen. Oh, and now is also a terrific time to take the first look at year end tax planning.

 

Our second responsibility is to take our first pass at the game plan for next year. Now this is not so much a detailed numeric preparation, but rather a strategic session where with our management team we will want to address more weighty issues such as targeted growth (sales goals),  pricing adjustments, organizational changes, capital wish lists, policies governing payroll – wage and benefit adjustments, cash flow and banking and major calls on capital such as debt reduction, expansion of or to new facilities or perhaps even an acquisition.

Get your heads around the 50,000 foot view of next year.  Key to that is establishing the pricing structure for 2011 for its selling season is about to start if not already. Sometime around the September / October time frame, we will want to document those strategic plans we made with a more detailed picture in numbers.

 

The message here is plan, plan, plan. Look at every eventuality and get prepared for the 50 year flood. Be a Boy Scout (Be Prepared) and make sure there are no surprises.

 

 

 

 

 

 

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Managing your Salesmen

Wednesday, May 12th, 2010

By Kevin Kehoe

Developing a sales machine is the most important investment a landscape contractor can make in his business.  Given pricing conditions and the negative impact this is exacting on gross profit margins, generating increased revenue volume is necessary to achieve net profit dollar goals.  At the heart of this revenue generation effort is the salesman.  They have never been more important and the management of the sales force never more critical.

Since the sales game is a tough one and lack of success can cause even the best to get in a slump, keeping your sales staff motivated is essential.  The primary motivators are (1) a need for achievement, (2) a desire to get better, and (3) the opportunity to make money.  To produce these motivators a sales manager should employ the classic carrot and stick approach.

Carrot
Goals and commission programs provide the carrot.  Goals should be set weekly for number of sales calls, monthly for the dollar value of bids required, and quarterly for every quarter for closed revenue volume.  Software such as Excel spreadsheets, SalesForce, Method, ACT and others can be deployed to manage this process.  In my experience most managers set goals too low.  Low goals provide little pressure, and most sales people are motivated by pressure.

Commission plans are essential.  A successful salesman should be the second or third highest paid employee in the company.  I prefer a first year 60/40 base/commission structure graduating it by the third year to a 40/60 with unlimited upside for the salesman.  In addition I like contests where there are non-cash rewards.  One company, short on revenue through August, challenged the salesman to get the company back on budget.  He did and the company rewarded him with a big screen TV - as promised. It was a one-time event.  Salesmen are motivated when there is something at risk.  When pay is guaranteed, I don’t think they run as hard.

Stick
Dashboards and coaching provide the stick.  Most contractors do a good job managing production.  Yet they don’t apply this same principle to the sales. Salesmen perform better when they are focused on high return activities. The dashboard is the pipeline report and it is a necessary stick because too many sales people (1) spend too much time selling to people they know and too little to those they don’t, and (2) working on prospects that ultimately have little chance of closing.  For example, I reviewed one salesman’s pipeline recently.  He had 243 prospects and appeared that he had enough leads to make his number.  Upon closer review it became clear that only 10 - 12 of these would likely close.  He needed to spend more time developing new leads to get back on track.

Salesmen need feedback.  Every good salesman has had the experience of wishing they had been quicker or smarter at some point during a call.  Making joint calls and engaging in post call “curbside chats” applies the stick gently and motivates them to become better.  In working with salesmen I have discovered some typical bad habits that can be easily addressed by this method.  These include (1) talking too much, (2) not asking the right questions, (3) arguing with the customer, and (4) failing to ask for the business and get a signature.

No salesman is immune to these behaviors.  Some years ago in an important sales presentation, a customer actually said to me more than once, “Kevin, ask me if I want to sign this contract.”  Apparently I did not hear this and proceeded to provide him with proof and testimonial to my wonderfulness until he finally became adamant.  He said. “Ask me!” At this point I said, “Would you want to sign this contract?”  He said, “Yes. Now let’s talk schedule.  When can you start?”  I was so busy talking and avoiding the potential rejection that comes with “NO” that I never asked the closing question.  It is a lesson I have never forgotten.  Salesmen require the coaching stick.

The best salesmen, in my experience, are hard wired for the job.  This is not say that someone cannot be taught to sell, but all the training in the world does not replace a natural predisposition to the task.  Salesmen at their best are capitalist athletes.  They like to win.  At their worst, when they are not winning, they are high maintenance time wasters.

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Three Point Group Assists Landscape Management Services, Inc with Shareholder Buy-outs.

Tuesday, March 9th, 2010

March 1st, 2010-Atlanta - Landscape Management Services, Inc. (LMS) announced today that it has successfully transferred 100% controlling ownership interest to Robert Owens as part of a combination buy-out of former shareholders Mary Madulka and Santigo Molina. Madulka will formally retire and Molina will continue his employment under LMS and Owens. Terms were not disclosed.

Three Point Group, Inc advised Owens on the buy-out assisting with its, valuation, funding and deal structure. Jeff Harkness, managing partner stated, “This was a team effort in getting this deal structured and closed. We worked closely with the other shareholder’s advisors and ultimately I think the collaborative effort got the deal closed.  This is a win-win for everyone and I know Robert is excited. The buy-out creates great momentum for the company’s growth strategy and we are looking forward to continuing our consulting relationship.”

Robert Owens added, “I’m excited about moving on and growing this company to new heights. We have a great team, customer base and business model. I feel like we can expand the brand and with a continuing focus on people and processes we can provide our clients with the best service at the right price. The Three Point Group team was a major key in getting this done and I’m looking forward to their counsel as we grow a smarter more profitable company.”

For more information:

Three Point Group, Inc.

Jeff Harkness, of Three Point Group, Inc. advised on this transaction.  Three Point Group works with green industry business owners to create, execute, and monitor plans that help businesses and their owners grow smarter, maximize business value, and create wealth by executing an exit strategy. For more information visit: www.3pgconsulting.com : Jeff Harkness, jeff@3PGConsulting.com or (678) 366-0333

Landscape Management Services, Inc

Landscape Management Services is a full-service Landscape contractor specializing in landscape maintenance services for the Atlanta metro area.  For more information on LMS contact:  Robert Owens at (678) 410-2290

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Three Point Group - Keynote Speakers at The PLANET Executive Forum

Tuesday, December 15th, 2009

Please join us as Three Point Group conducts a one-day workshop on Friday, February 19, 2010 at the Planet Executive Forum at the ARIA Resort & Casino in Las Vegas, NV.  The workshop, Winning in the New Economy, will provide participants with facts, analysis and tools to assist contractors in identifying areas where they can improve their investment leverage and increase growth and profits.  The agenda will include business forecast and 2009 industry performance data to help you benchmark and determine your 2010 plan.   Winning in the New Economy will provide practical tools and examples of “how to’s” of our three core strategies for profit generation – revenue, labor hour and overhead management.  The workshop will be in a series of three presentations, followed by round table discussions and hands-on learning.  Our goal is to have every participant leave with a clear action plan outlining the investments and actions that will pay off for them in 2010.

Please join us at this great PLANET tradition.  Come prepared to learn strategies and practices that can be implemented immediately.  PLANET has created an ideal forum for green industry professionals to learn, exchange ideas and have some fun!

For more information:

PLANET, Professional Landcare Network
PLANET, the Professional Landcare Network, is an international association serving lawn care professionals, landscape management contractors, design/build/installation professionals, and interior plantscapers. PLANET provides its members with a good business foundation to help them evaluate, plan, and better manage their companies.  Visit www. www.landcarenetwork.org

Three Point Group, Inc.
Three Point Group works with green industry business owners to create, execute, and monitor plans that help businesses and their owners grow smarter, maximize business value, and create wealth by executing an exit strategy. For more information visit: www.3pgconsulting.com: Jeff Harkness,  jeff@3PGConsulting.com or (678) 366-0333; Frank Ross, frank@3PGConsulting.com; Kevin Kehoe, Kevin@3PGConsulting.com


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Three Point Group facilitates Nature Scapes & LMG Merger!

Monday, October 5th, 2009

Atlanta, October 2, 2009 – Nature Scapes, Inc. & Landscape Maintenance Group, Inc (LMG), two of Atlanta’s premier landscape maintenance companies, announced today that they have merged effective October 1st.

Three Point Group, Inc advised on the merger including its funding and deal structure. Jeff Harkness, managing partner stated, “This is great opportunity for both companies to leverage their strengths. The merger will enhance the route density of both firms and has created a buzz among the employees of both teams. This momentum will help accelerate growth, enhance best practices and provide customers a better product.”

With the merger, the combined entities will produce over $10 million in revenue, making Nature Scapes one of the largest locally owned landscape companies in the Southeast. The addition of LMG’s office and facility will provide Nature Scapes an immediate branch in Marietta, allowing for broader coverage of the metro Atlanta area and enhance a regional model.

“We are very pleased to join forces with LMG,” Rick Upchurch, CEO of Nature Scapes, said. “They are a well-established business, having served Atlanta for 15 years, and they have an excellent reputation and loyal client-base.”

Kyle Johnson, CEO of LMG, added, “I believe this merger is a win-win situation. It’s the coming together of two seasoned leaders in the Atlanta real estate market. Nature Scapes is a quality organization and there is tremendous synergy with our cultures, production models and customer base.”

Kyle, who will join the Nature Scapes ownership team, added “I am very much looking forward to joining the ownership team with Rick Upchurch and Mike Kneeland (Chief Operations Officer, Nature Scapes). They both have extensive experience in the industry and as executives. I anticipate benefiting greatly from their wisdom.”

“Kyle Johnson is a 25-year veteran of the landscaping industry,” Mike Kneeland said. “He will be a tremendous asset to us. He understands the value of customer service—some of his customers have been with him since the first years of LMG.”

In the immediate future, Landscape Maintenance Group will operate under the name LMG, a Nature Scapes Company. Operations in the Marietta offices of LMG and Lilburn offices of Nature Scapes will continue as usual. “We look forward to providing our customers the same high-quality service they are used to and now with greater coverage on the west side of Atlanta through our new Marietta location,” Mr. Upchurch said.

For more information:

Three Point Group, Inc.
Jeff Harkness, of Three Point Group, Inc. advised on this transaction. Three Point Group works with green industry business owners to create, execute, and monitor plans that help businesses and their owners grow smarter, maximize business value, and create wealth by executing an exit strategy. For more information visit: www.3PGConsulting.com : Jeff Harkness, jeff@3PGConsulting.com or (678) 366-0333

Nature Scapes, Inc.
Nature Scapes, established in 1983, specializes in landscape maintenance, irrigation, and floriculture services for multi-family and commercial properties. For more information on Nature Scapes visit www.nscapes.com
Nature Scapes: Rick Upchurch, rupchurch@nscapes.com or 770-923-7023

Landscape Maintenance Group, Inc.
LMG is a full-service contractor specializing in complete landscape management and landscape enhancement for both commercial and residential properties. For more information on LMG, visit www.lmgatlanta.com.
Landscape Maintenance Group: Kyle Johnson, kyle@lmgatlanta.com or (770) 514-8000

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