Landscaping is bought for its recurring maintenance base. Design and installation revenue is real but lumpy, follows the housing market and depends heavily on the owner selling it. A company with a large contracted maintenance route prices on a different basis from one with the same profit made from installs.
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The maintenance route
Contract count, average value, renewal rate and length of relationship, reported separately from installation revenue. That separation is the argument for a better multiple and a seller who reports one revenue line hides it. Commercial contracts with defined terms are worth more than residential ones that renew by habit.
Crews, equipment and seasonality
Crew retention matters in a trade short of labor, and a buyer will ask about turnover and pay structure. Equipment is priced on remaining life rather than book value. Seasonality is expected but should be presented as monthly figures across several years, with the off season cost base shown, so a buyer does not imagine a worse trough than the real one.
Who is buying
Local competitors adding routes, regional platforms consolidating maintenance contractors, and individual buyers with lending. The platforms usually pay more, ask for more diligence and want a transition commitment, and they will not find you through a listing.
Questions people ask about selling a landscape business
What raises the price most?
Converting one off customers to maintenance contracts, and taking yourself out of estimating and selling. Both change the multiple rather than just the earnings.
Do irrigation or tree services help?
Additional recurring services on the same route usually improve the multiple, because they raise revenue per customer without raising acquisition cost.
How long does the sale take?
Six to twelve months from a prepared start. Selling ahead of the season is often easier because the contracted base is visible.