For the enterprise value specialists at Ceibass, March Madness isn’t just about basketball; it’s also a fitting metaphor for the chaotic and often irrational ways lawn and landscape business owners behave when selling their companies.
“Just as the excitement and unpredictability of March Madness captivate basketball fans, the process of selling a business can be equally maddening,” said Tom Fochtman, Ceibass CEO. “This time of year serves as a reminder of the critical mistakes owners make when they enter the M&A process unprepared, ultimately costing them in the long run.”
So what are some of those mistakes? Here’s some of the madness that the team has experienced:
1. Waiting Until the Last Minute
Selling a business isn’t a quick transaction—it’s a process that takes years of preparation. Yet, many owners wait until they’re burned out or facing financial challenges before considering a sale. This is madness! The best exits happen when the business is thriving, not when the owner is desperate to get out.
2. Not Knowing Their True Valuation
We’ve seen owners throw out wild numbers based on gut feelings rather than a proper valuation. Some overestimate their worth, scaring away buyers. Others underestimate and leave money on the table. Get a professional valuation early to avoid the madness of guessing.
3. Ignoring Their Financials
Disorganized books, inconsistent revenue tracking, and hidden liabilities make buyers run for the hills. A strong, clean financial history is critical to maximizing value. Yet, many owners fail to get their numbers in order before going to market.
4. Being Too Emotionally Attached
It’s your business, your legacy—we get it. But clinging to outdated practices, refusing to make necessary changes, or taking negotiations personally can sabotage a deal.
5. Not Having a Succession Plan
Buyers want to see a business that can thrive after the owner leaves. If the company is too dependent on the owner, its value plummets.
6. Relying on One or Two Major Clients
If 50% of your revenue comes from one or two clients, that’s a major red flag for buyers. If those clients leave after the sale, the business could collapse. A diversified customer base is crucial for a strong valuation.
7. Failing to Strengthen Middle Management
Many owners believe they are the only ones who can run their business. The problem? Buyers don’t want to buy a company that falls apart when the owner exits. Having a strong leadership team in place is key to attracting serious buyers.
8. Not Eliminating Unprofitable Clients or Services
Some business owners believe every customer is a good customer. That’s madness! If you’re servicing low-margin, high-maintenance clients, you’re dragging down your company’s profitability. Buyers want streamlined, high-margin businesses—not a mess of unprofitable contracts.
9. Poorly Structured Contracts & Recurring Revenue Issues
One of the most valuable aspects of a landscape business is its recurring revenue. If your contracts are weak, poorly written, or easy to cancel, your business value takes a hit. Locking in long-term service agreements makes your business far more attractive.
10. Overlooking Industry Trends & Technology
Some owners run their business the same way they did 20 years ago and think buyers won’t notice. Buyers look for companies that are staying competitive—using modern equipment, leveraging software, and keeping up with sustainability trends. A company stuck in the past isn’t attractive in today’s market.
“Don’t let the madness sabotage your sale. Selling a business should be a well-planned strategy, not a desperate last-minute decision. The best deals happen when owners take time to prepare, optimize, and position their business as an asset worth acquiring,” added Tom. “If you’re thinking about selling in the next few years, start the process now. Plan smart, execute well, and ensure your business is a contender—not an early exit.”
