Who Buys a Landscaping Company
- Larger landscaping companyWants more routes, crews and equipment in the same area.
- Franchise or roll up buyerLooks for recurring contracts and managers in place.
- Crew leader or managerKnows the routes and needs a seller note or lender.
Contracts Versus One Time Jobs
Mowing and maintenance contracts that renew each year are worth more than design and install jobs that must be won again. Show how many customers stayed for three years and what share of revenue is recurring.
Seasons and Cash
Kentucky winters slow outdoor work, so buyers read twelve months of results. Bring a monthly chart of sales and payroll and note any snow or tree work that fills the gap.
Crews Are the Business
Good crew leaders are hard to replace. Buyers ask who runs each route, how long they have stayed and whether anyone has a side business. Tell the crew close to closing, not before.
Equipment and Condition
Mowers, trucks and trailers wear out. Bring an equipment list with ages and repair costs, and note what is leased. Buyers may haircut depreciation add backs, so keep maintenance records.
Customer Concentration
A large account such as an apartment owner or a school district is a good thing until it is a fifth of revenue. Show how you would replace it.
What the Price Looks Like
Smaller companies sell on owner earnings at roughly two to three times. Buyers pay for provable profit, not potential, so document what you earn today.
Questions Buyers Ask
- How many accounts renew each year?
- Who holds the key customer relationships?
- What equipment needs replacing soon?
Next Steps
Read how buyers pay, review your equipment tax return duties, then find your sale price.