Who Buys a Landscaping Company
- Larger landscaping companyWants more routes and crews in the same area.
- Crew leader or managerKnows the accounts and needs a business that is already organized.
- Property services groupAdds maintenance contracts to other building services it provides.
What the Buyer Is Paying For
Buyers value a landscaping company on the cash left after one working owner is paid, then apply a multiple. Most Main Street businesses sell for about two to three times that figure.
Maintenance routes that repeat every week or month are worth much more than one off installation jobs, because the buyer can count on them.
Contracts and Customers
Buyers sort revenue into recurring work and project work. They also check whether a few large customers, such as a condominium association or a property manager, make up too much of the total.
If the top one to three customers are more than fifteen to twenty percent of revenue, buyers often discount the price by about that share.
Crew Depth
The business has to run when you are not on the mower. Buyers ask who leads each crew, how long they have worked for you and what they are paid.
A buyer who sees stable foremen and low turnover pays closer to the top of the range.
Equipment and Licensing
Mowers, trucks and trailers wear out. Buyers may haircut depreciation add backs, so keep a list with age, condition and maintenance records. Check whether your contractor or pesticide licenses pass to a buyer, and ask the issuing agency.
Getting Ready
Create a route list showing each account, its monthly fee and how long you have served it. Read about buyer financing and keeping a sale private, then ask what your business is worth.