Will my lawn care customers stay after I sell the business?
Some will if the change feels small to them. Written service agreements, a clear introduction from you, the same crew on the same streets and a transition period all help. Clients on a handshake are the least certain, so find out which ones they are before you list.
A lawn care roster is a set of small, regular relationships. Clients rarely think about who owns the company. They notice whether the grass is cut on the usual day by the usual faces. That is good news for a seller, because a sale can feel invisible to them if you handle it well. Here is how to prepare.
Know which clients are on paper
Go through the roster and sort it. Some clients have a written service agreement, some have a season plan, and some have simply been served for years on a handshake. A buyer will want to know the difference. Ask your lawyer whether and how your agreements can pass to a buyer, and consider putting long-standing handshake clients on a simple written agreement well before you list.
Prepaid season plans
If clients pay ahead for a season, a buyer will ask what has been paid and what service is still owed. Keep a clean record of each plan. Your accountant can help you work out how those payments are treated between you and the buyer, and your lawyer can write the arrangement into the sale agreement.
The introduction and the crew
Plan a short letter or message to clients, sent once the sale is firm, introducing the new owner and saying the service, schedule and crew will carry on. Where you can, keep the same crew on the same streets. Clients who see familiar people on their lawn tend to relax. Ask the buyer to keep the main contact numbers and the invoicing look steady for the first season.
A transition period
Offer to stay involved for a defined stretch, riding along with the buyer, taking calls from long-standing clients and handling any complaint that arrives early. See the guide to selling a landscaping business.
Related reading
15 pages on the same subject, grouped by topic.
Selling
Due diligence
Buying
- GuideHow do I buy a lawn care business in Canada?
- GuideBuying a snow removal company in Canada
- Expert answerWhat should I check before buying a parking lot cleaning business?
- Expert answerHow can I tell whether a landscaping business is profitable before I buy it?
- Expert answerWhat do owners wish they knew before buying a landscaping business?
- Expert answerWhat should I check before buying a lawn mowing route?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to minimize negotiations when selling your business
- 02Business Development Bank of CanadaGovernmentWhat is succession planning?
- 03Business Development Bank of CanadaGovernmentAdvice for succession planning - Articles and tools
- 04Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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