Analysis of garden market claims 136 garden centres ripe for takeover

Market researcher Plimsoll says it has looked into the acquisition attractiveness of the UK's largest 659 garden centre companies and has identified 136 firms as classic acquisition targets; in other words under performing businesses that predators would usually look for.

But in its report, Aquisitions, the research company suggests buyers should be looking to broaden their horizons away from these "classic acquisitions" and should instead take a look at the 26 companies identified as high value acquisitions.

Analyst David Pattison said:  "There are plenty of companies that need capital and would welcome investment. Distress sales have dominated the market in recent years as strong companies have looked to take over weaker companies and exploit ailing businesses. But it is now time for a change in strategy.

He continued: "There are 26 firms in the garden centre industry that buyers should be looking at. These companies are privately owned, have increased in sales over the previous year, are debt free and are showing excellent profits.

"Taking over a weak company takes time, is diverting and is a high risk. But these high value acquisitions would immediately add value to your bottom line as well as give you instant power in the market.

"Indeed, buying one of these companies would give you quick access into a fast growing market and would instantly give you power – essentially forcing many of your already-weakened competitors out of the game.

"Of course some of these high value acquisitions would command a high price premium, but this new analysis tells you why some companies are worth more than others and enables you to seek out growth.



 


Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Sign up now
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Read These Next

Electric car charging: an opportunity for garden centres?

Electric car charging: an opportunity for garden centres?

There are 11,700 electric car-charging points across the UK but only eight at garden centres, so more can be done to take the opportunity in garden retail.

Dazzling display of new plants at Four Oaks Trade Show 2017

Dazzling display of new plants at Four Oaks Trade Show 2017

A wide range of first-time exhibitors and established names will showcase a wealth of new varieties at September's Four Oaks Trade Show, says Matthew Appleby.

Product and service showcase

Product and service showcase

Fresh solutions to production problems can be found among the array of products and services being introduced at the Four Oaks Trade Show, Sally Drury reports.


Follow us on:
  • Facebook
  • LinkedIn
  • Twitter
  • Google +
Horticulture Jobs
More Horticulture Jobs

Horticulture Week Top 100 GARDEN CENTRES

Our exclusive ranking of garden centre performance by annual turnover. 

Garden Centre Prices

Peter Seabrook

Inspiration and insight from travels around the horticultural world
 

Read more Peter Seabrook articles

Neville Stein

Business advice from Neville Stein, MD of business consultancy Ovation
 

Read latest articles