For some lawn and landscape companies, mergers and acquisitions are only considered once private equity is involved. Senske Services, based in Kennewick, Washington, completed between 17 and 20 lawn care and plant health acquisitions well before partnering with private equity firm GTCR.
“Many of these acquisitions were smaller companies that approached us because their owners wanted to exit the industry or retire,” says Chris Senske, acquisitions ambassador for Senske Services.
Senske says initially, these acquisitions were opportunistic. He was particularly interested in ones that allowed them to enter new markets or accelerate their growth in existing ones.
“Over time, we learned what worked well and the challenges to avoid,” Senske says. “We also gained insight into what sellers wanted from a deal, often focusing on non-financial aspects like culture and post-sale terms, more than just price.”
Partnering with GTCR
After finalizing the deal with firm GTCR in 2022, Casey Taylor and Nathan Hurst were named co-CEOs. Taylor and Hurst worked together in a similar capacity at the company Waterlogic.
“With the rapid growth of Senske, having two CEOs helps us manage the pace more effectively,” Taylor says. “We have complementary strengths, and dividing responsibilities allows us to stay focused on growth without losing momentum.”
Taylor says the two of them are rarely unable to come to a consensus, but when necessary, they will hash things out with the leadership team and GTCR.
Senske says that GTCR has taken a hands-off approach, allowing Taylor and Hurst to build a recurring revenue business.
“GTCR has been a great partner,” Taylor says. “They’re heavily involved in large acquisitions and offer valuable insights on industry trends and scaling strategies but leave the day-to-day operations to us, allowing us to focus on strengthening the business.”
Taylor says that while there will eventually be a transition within GTCR or to outside investors, they have advised the co-CEOs to invest in the business as if they’ll own it forever, which allows them to focus on long-term growth rather than short-term gains.
Growth Plans
Since the acquisition, Senske has broadened their presence across the U.S. and added sixteen brands to their portfolio.
“Growth has always been a priority, especially as a private equity-backed company,” Taylor says. “Acquisitions are key to expanding our footprint from Senske’s core in the Northwest into other high-growth lawn care regions. We’re also focused on organic growth by expanding offerings to existing customers and increasing our reach within current markets.”
Taylor anticipates they will maintain a similar pace over the next few years with so many strong companies available.
“Many owners who built their businesses in the ‘80s, ‘90s, and early 2000s are now at a stage where they’re considering exit strategies,” Senske says. “It’s a great time for them to cash in on their hard work. There’s also potential for consolidation among companies that have already been acquiring others.”
Senske says they aim to establish every NFL city, with the potential exceptions of parts of California, Vegas, and Phoenix. Taylor explains that these locations don’t have strong lawn care markets, so they are focusing on the Southeast, Midwest and Northeast.
“Owners looking for exit options often approach us directly or come through referrals,” Senske says. “We also actively reach out to companies in target markets, and once we’ve acquired a business in a region, others tend to follow.”
Taylor notes that Senske’s reputation in the industry has helped lend credibility to their growing organization.
The ideal company they look to acquire will vary depending on the market.
“When entering a new market, we seek companies with significant revenue and a leadership team capable of supporting rapid growth,” Taylor says. “For existing markets, we’re open to smaller tuck-in acquisitions. In both cases, culture fit — especially a focus on customer service and employee development — is critical.”
Taylor adds that they will only make small tuck-in-size acquisitions in markets where they already have a platform, as they want to have the infrastructure for growth.
“We will do tuck-ins in markets adjacent to our platform companies as this is an excellent way to extend a great platform business and create new growth opportunities for its employees to become branch or regional managers,” Taylor says.
Inside the Senske Family of Companies
Senske Services has opted to do a number of platform acquisitions in existing markets, which helps them build density and market share in a region.
“We believe in retaining the unique branding and culture of each company, as that’s what made them successful,” Senske says. “Our focus is on delivering a best-in-class customer and employee experience, and maintaining each company’s identity helps preserve the local pride and loyalty that are key to both.”
Taylor says they aim to maintain the existing culture of the companies they acquire. They seek out businesses that share their values, which ensures smooth integration without losing what made them great in the first place.
He says the changes they make improve employee benefits, provide tools for field technicians and new training and operational systems.
“Our goal is to support the existing team and introduce best practices that we’re developing across the network,” Senske says.
Taylor says they encourage regular interactions between teams and the sharing of best practices.
“We’ve been fortunate to acquire companies with long histories in lawn care and pest control, and when these experts collaborate, the energy is incredible,” Taylor says. “They consistently come up with innovative improvements.”
In most cases, they also improve the employee and customer retention rates of the companies they acquire.
“We provide new employees with better systems, support, and benefits, while enhancing the customer experience through improved communication and services,” Taylor says.
As for the former owners, Taylor says many owners stay to help expand their regions.
“Especially with our initial acquisitions, it was important to retain as much expertise as we could in the lawn care industry, and we were lucky to partner with excellent leaders in our acquisitions,” Taylor says. “Those owners are now integral to our success and leading our efforts to identify best practices that can be shared throughout the organization.”
Senske himself says he’s stayed on is to make sure that the culture remained as family-friendly, employee-friendly and customer-friendly as the company he had built over time.
Other owners sell so they can retire, and this also gives existing employees growth opportunities.
Tips for Success
Taylor says selecting businesses that align with your culture is crucial. Conduct proper due diligence and have a solid integration plan to ensure the success of both the acquisition and the existing business.
Senske says the importance of due diligence was one of the hard lessons they learned early on. They acquired a small company without realizing it hadn’t serviced customers in months and had no employees.
Taylor says they are constantly refining their process. He says the right company, coupled with proper planning, is essential to retaining both employees and customers.
“Networking in industry associations like NALP is invaluable for building relationships with potential acquisition targets,” Senske says. “Meeting owners and managers helps set the stage for future opportunities.”
This article was published in the Jan/Feb issue of the magazine. To read more stories from The Edge magazine, click here to subscribe to the digital edition.
