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.



 


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