Valuations
What's My Landscaping Business Worth in 2026?
Landscaping is one of the fastest-growing segments in home services M&A. Private equity firms and strategic buyers are actively acquiring landscaping companies, and well-run businesses with recurring revenue are commanding premium valuations.
But what does "premium" actually look like? And what makes one landscaping company worth 2x while another commands 5x? Let's break it down.
Landscaping Business Valuation Multiples
Most landscaping businesses sell for 2x to 4x SDE or 3.5x to 6x EBITDA, depending on size and quality.
Here's how the range typically breaks down:
| Business Profile | Multiple Range |
|---|---|
| Small, owner-dependent, mostly residential | 1.5x – 2.5x SDE |
| Established with crews, mix of residential/commercial | 2.5x – 3.5x SDE |
| Strong recurring revenue, managed teams, $1M+ EBITDA | 4x – 6x EBITDA |
| Platform-quality with $2M+ EBITDA and growth | 5x – 7x+ EBITDA |
The jump between the low end and high end is enormous — and it comes down to a few key factors.
What Drives Landscaping Valuations Higher
Recurring Revenue
This is the single biggest valuation driver in landscaping. Buyers distinguish between:
- Maintenance contracts (weekly/monthly mowing, seasonal care) — highly valued
- Commercial contracts (multi-year landscape maintenance agreements) — extremely valuable
- HOA contracts — large, predictable, and sticky
- One-time project work (installs, hardscaping) — valued less because it's not recurring
A landscaping company with 70% recurring revenue will sell for a significantly higher multiple than one with 70% project-based revenue, even if total revenue is the same.
Customer Concentration
If your top 3 customers represent more than 30% of revenue, buyers will discount your valuation. Diversification matters — especially if you serve commercial clients, since losing one big HOA contract could materially impact revenue.
Workforce Stability
Landscaping companies live and die by their crews. Buyers want to see:
- Low turnover among crew leaders and foremen
- Documented training programs
- Legal workforce with proper employment documentation
- H-2B visa program participation (if applicable) with established history
- Competitive compensation that reduces poaching risk
Equipment Condition
Unlike many service businesses, landscaping companies have significant equipment assets. Buyers evaluate:
- Fleet age and condition (trucks, mowers, trailers)
- Maintenance records
- Replacement schedule and estimated CapEx needs
- Owned vs. leased equipment
Well-maintained equipment is a positive signal. A fleet that needs $200K in replacements next year is a direct hit to your valuation.
Owner Dependence
If you're still on a mower three days a week, your business is heavily owner-dependent. Buyers want companies with:
- Crew leaders who manage their own teams
- Office staff handling scheduling, billing, and customer communication
- An operations manager or general manager
- The owner focused on strategy and sales, not production
Seasonality Management
Landscaping is inherently seasonal in many markets. Buyers look favorably on companies that have mitigated seasonality through:
- Snow removal services in winter
- Holiday lighting installation
- Year-round maintenance contracts
- Irrigation and drainage services
- Tree care and arbor services
Who's Buying Landscaping Companies?
The buyer landscape for landscaping companies has expanded dramatically:
Private equity is the most active buyer segment. Multiple PE firms have built landscaping platforms and are actively acquiring companies across the country. They typically want $1M+ in EBITDA for platform deals, or any size for add-on acquisitions to existing platforms.
Strategic acquirers — larger landscaping companies expanding geographically or adding service lines — are also very active. BrightView, TruGreen, and dozens of regional players are always looking for acquisitions.
Individual buyers funded by SBA loans target smaller operations in the $500K–$3M range.
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Take the AssessmentHow to Increase Your Landscaping Business Value
If you're thinking about selling in the next 1-3 years, here's where to focus:
Convert one-time clients to contracts. Every residential mowing client you convert to an annual maintenance agreement adds recurring revenue and increases your multiple.
Win commercial contracts. Multi-year commercial maintenance agreements are the gold standard. Even a few solid commercial contracts can transform your valuation.
Build your management layer. Hire or promote operations managers and crew leaders. Remove yourself from day-to-day production.
Invest in technology. Route optimization, CRM systems, GPS tracking, and digital estimating tools signal operational sophistication to buyers.
Document everything. Service agreements, employee handbooks, safety protocols, equipment maintenance logs. Documentation reduces transition risk and increases buyer confidence.
Build your brand. Professional website, consistent branding on trucks and uniforms, strong Google reviews. Buyers pay more for branded businesses than "guy with a truck" operations.
Common Valuation Mistakes
Overvaluing equipment. Your trucks and mowers have value, but they're depreciating assets. Equipment value is a floor, not a ceiling — your business value should be well above your asset value if you've built a real business.
Ignoring seasonality in financials. Presenting annual numbers without addressing seasonal cash flow patterns raises questions. Be upfront about seasonality and show how you've managed it.
Counting on future contracts. Buyers value what's in place today, not what you're "about to close." If you have big contracts in the pipeline, close them before going to market.
Ready to Learn More?
Whether you're ready to sell now or want to start building toward an exit in a few years, understanding your valuation is the first step.
I help landscaping and home services business owners understand their value and navigate the sale process. Book a free confidential call to discuss your business, or explore valuation multiples across industries.
Ready to find out what your business is worth?
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