Landmines/Diligence Priorities for Landscaping Design/Build Companies?
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by a searcher
in Washington, DC, USA
in Washington, DC, USA
2yrs ago
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by an investor
2yrs ago
from University of Maryland in 4040 Civic Center Dr, San Rafael, CA 94903, USA
from University of Maryland in 4040 Civic Center Dr, San Rafael, CA 94903, USA
These would be top priorities for my commercial landscaping company when doing acquisition:
1) Direct Contribution margins (direct labor, direct COGS, sub-contractors) = want to see 50%+
2) Any job costing data available? If not (alot of small companies, not) then want to see bid sheets and labor pricing in those estimates to see what quoted at, revenue per budgeted hour quoted and does this meet our minimums
3) Fleet breakdown (make, model, year, mileage % breakdown), older fleet means deferring capex and not investing appropriately in the business
4) Labor practices (especially in California), including ALL PAGA related diligence (time and attendance, wage and hour, meal break and rest break policies)
5) Facilities / real estate costs....big component of overhead that is fixed and can swing P&Ls
Then of course all the usual (any customer concentration, management team / support team in-place etc..)
1) Direct Contribution margins (direct labor, direct COGS, sub-contractors) = want to see 50%+
2) Any job costing data available? If not (alot of small companies, not) then want to see bid sheets and labor pricing in those estimates to see what quoted at, revenue per budgeted hour quoted and does this meet our minimums
3) Fleet breakdown (make, model, year, mileage % breakdown), older fleet means deferring capex and not investing appropriately in the business
4) Labor practices (especially in California), including ALL PAGA related diligence (time and attendance, wage and hour, meal break and rest break policies)
5) Facilities / real estate costs....big component of overhead that is fixed and can swing P&Ls
Then of course all the usual (any customer concentration, management team / support team in-place etc..)
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by a searcher
2yrs ago
from HHL Leipzig Graduate School of Management in München, Deutschland
from HHL Leipzig Graduate School of Management in München, Deutschland
Customer structure is quite important (public vs commercial vs private); and I think the most important point is definitely project controlling (from calculating during inquiries up to continuous tracking while executing).
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