The age of artificial intelligence (AI) is here, and it’s changing how people work. Where past technological revolutions replaced or augmented repetitive factory tasks, AI is taking over knowledge work. Reporting, analysis, emails, scheduling and other activities that required trained staff are now well within AI’s skill set.
As a result, businesses less vulnerable to the adoption of AI could become more attractive to buyers. This includes landscaping services, general maintenance, painting and other services businesses.
If you operate in an AI-immune trade, now could be the time to sell your business. Here’s what you need to know.
How Trades Will Resist the AI Revolution
AI is exceptional at many things. If can flag patterns in large sets of data. It can review contracts with pinpoint precision, write code, sort information and so much more. Innovations that leverage AI are already being adopted by offices. More than half of employees use AI tools and save an average of 52 minutes a day, or close to 5 hours a week. AI’s time-saving advantage could see mass layoffs; if the same amount of work can be done in less time, fewer workers are needed.
In contrast, the physical labor involved in landscaping, general maintenance, painting and other services can’t be replaced by AI, at least not yet.
Buyers recognize that the need for physical work is going nowhere fast, as AI can’t perform it on it’s own.
The Ongoing Demand for Home Services
Another feature drawing buyers toward the home services space is the proven ongoing demand. Home services businesses track the property market. When the market is doing well, revenue increases because, for homeowners, the services are essential.
In 2022, low interest rates fueled market growth. As rates rose over the next few years, spending on home services continued as disposable income increased as well. People want to maintain and protect their property investments, and that’s what drives continued service demand.
As a result, revenue in the U.S. landscaping industry, for example, has grown at a 6.5% annual rate to reach $188.8 billion through 2025. Profit margins have been resilient, too, at about 13%, despite rising supply costs.
Why Sell Now?
Right now, several forces are working in your favor:
- Buyers want stable cash flow tied to reoccurring service contracts.
- Investors are looking for businesses immune to the rollout of AI and the potential workforce disruption that will likely follow.
- Industry revenue continues to grow, with forecasts predicting sustained expansion until 2030.
- Profit margins are still high, even in an environment where supply costs are increasing.
- Institutional and commercial clients generate higher revenue per service and provide predictable schedules.
Take the First Step with The Batallan Group
Selling a business is a big decision. You’ve put in the hard work. You’ve nurtured client relationships founded on trust and built an incredible team that performs at the highest industry standard job after job. You want a buyer who sees and respects that value.
The Batallan Group started as a family-owned and operated company and those early days shape how we do business. We know that while the figures are critical, your legacy is important too.
So if you’re thinking of selling your business, why not schedule a quick call with one of our founders? Let’s discuss your goals and see what your future could look like.