Control Your Exit
There are several reasons why becoming a Spring-Green franchise owner makes sense, and one of the most compelling is that Spring-Green franchise owners have the benefit of being able to leverage the collective knowledge of the entire franchise system. Having a technology platform that allows you to compare key business performance data against your goals, historical performance and your peers’ performance can be very powerful, and also very compelling when you think about retiring, transitioning your business to a son or daughter or selling your business to another company in your area.
Reselling a franchise assures the new buyer they are joining an established brand with a support system taking the burden off you to transition the business. Over the years, we’ve learned that one of the biggest advantages of owning a franchise compared to an independent business is having the kind of support and guidance that can only be provided by a group of professionals with many years of industry experience. While being a lone wolf entrepreneur may sound like a romantic prospect, in reality, going it alone is a stressful, risky proposition.
If you’ve ever considered selling your business, you know the options are limitless and difficult to navigate. Just take a few minutes to Google the term “Exit Strategies,” and you’ll find countless articles from resources like Entepreneur.com, PricewaterhouseCoopers, Inc.com, and more. And almost all of the sites focus on three main options*:
- An IPO – In an IPO, you sell a portion of your company in the public markets. You and your management team typically remain in place for a period of years, your investors and managers may be able to sell some stock, and your company continues to operate much as it has in the past. However, your company will be subject to additional regulations, such as Sarbanes-Oxley requirements, and Wall Street analysts and institutional investors will scrutinize your quarterly performance.*
- A strategic acquisition – In a strategic acquisition, another company purchases your business, either with cash or stock in the acquiring company or with some combination of stock and cash. The acquirer may or may not retain you and your management team, and may or may not make substantial changes in your company’s operations, staff, and business lines.*
- Management buyout – If you decide to recapitalize and sell the company to the next generation of managers it is known as a management buyout. This type of transaction is usually financed through some combination of debt and/or private equity investment, with the debt collateralized by the assets of the company. It provides immediate liquidity to the owner and early shareholders, and allows the company to continue as a private enterprise.*
As you consider your next move, think about diversifying with a company that provides
- Improved Operational Efficiency
- Better Buying Power
- Collective Knowledge
- Industry-Leading Marketing & Technology
- Exit Strategy Assistance
- Financial Performance Benchmarking & Reporting
- Marketing Selection and Analysis Tools
- Additional Service Sales
- National Call Center
- Online Marketing
A lot of these attributes are unique to a company in the lawn care industry and, more importantly, to franchise systems of this size. The Spring-Green support center works hard to overdeliver for each and every franchise owner in the system.
*Source: http://www.inc.com/guides/2010/10/how-to-choose-an-exit-strategy.html