Business analysts Plimsoll claim to have identified more than two dozen thriving garden centres ripe for acqusition by ambitious buyers seeking growth.

They say there has never been a better time to seek out an acquisition – but buyers should favour high-value companies rather than weaker businesses.

Plimsoll’s latest study embraces the UK’s largest 659 garden centre companies and identifies 136 they describe as “classic acquisitions –  underperforming businesses that predators would usually look for”.

They advise buyers to broaden their horizons and look instead at the 26 high value businesses that would be more likely to give a faster return on investment.

David Pattison, Plimsoll’s chief analyst, said there were plenty of companies that needed 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,” he said. “But it is now time for a change in strategy. There are 26 firms in the garden centres industry that buyers should be looking at.”

He says these are all privately owned, have increases in sales over the previous year, are debt free and are showing excellent profits - qualities that make them attractive acquisitions. “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,” he said.

Buying one would mean “quick access into a fast-growing market” and  instant power – “essentially forcing many of your already-weakened competitors out of the game”.

Pattison suggests their potentially high price premium would be worth paying in the search for growth.

For more information, go to: www.plimsoll.co.uk or call 01642 626419. Readers of GTN Xtra are entitled to a £50 discount when they buy this report, quoting reference PR/AA34.