Tom Farinacci II
About Our Guest
Tom Farinacci II started his landscaping business, Pro Design Landscape in 1998 and quickly grew in the residential landscaping market.
In 2001, Tom acquired his father’s landscaping business and then joined forces to build the company to a higher level.
In 2012, Tom decided to do a major acquisition to have a significantly large market share in the area and acquired Greenleaf Enterprises Inc.
In 2017, Tom did another acquisition of Riverstone Landscape and grew to 10 crews with 35 full-time employees.
After 30 years of working in the landscaping field, and working towards and meeting all of the goals, Tom sold Greenleaf Enterprises Inc in 2020.
He is currently investing in commercial real estate and willing to work in the consulting field for any service businesses to help them troubleshoot any problems and prepare for peak efficiency to get any business ready for maximum production or ready for a timely exit.
About this Episode
Why Acquisition Over Organic Growth Can Help You Scale Quickly
In the Houston Landscaping industry, organic growth was steady but slow. For Tom Farinacci, he saw an opportunity in the market to grow his business ‘Pro Design Landscape,’ via consecutive strategic acquisitions of competitors.
After tripling the size of his company in 2012 with his biggest acquisition yet, his growth strategy eventually led to thoughts around an exit just at the onset of the COVID pandemic in 2020.
In this latest episode, Tom talks about good old fashioned hard work, an entrepreneurial mindset, and how these two things, coupled with an eye for acquiring competitors strategically, helped him craft the perfect exit.
Tune in for some great insight from a traditional entrepreneur who exited when he knew the time was right.
What you will learn in this episode
In this episode we’ll cover everything from:
- Why strategic acquisitions can be the fastest way to grow a business
- How important intuition and gut feel are when scoping a new buyer of your business
- Why you should always have an independent 3rd party review your financials before selling
- How an extra year of pushing to grow your business before exit can make or break a deal
Connect with Tom Farinacci II
(6:18) Slow and steady growth was the name of the game early on, however it wasn’t fast enough for Tom. Learn how strategic acquisition became Tom’s key lever to pull when it came to rapid growth.
(11:40) Knowing your endgame before exiting a business is very important. Not everyone has the luxury of knowing as Tom discusses here.
(18:30) Want to learn how to identify viable businesses for strategic acquisition? Tom discusses the key factors he was actively looking for in a business before acquiring it.
(27:30) In his first two acquisitions, Tom didn’t know the EBITDA. Instead he was looking at these other important elements.
(39:50) After an independent 3rd party financial review of his business before exiting, Tom received some important advice about continued business growth. This is his top tip.