What Is Your Landscaping Business Actually Worth?
Seasonality, route density, and crew stability determine whether your lawn care company sells at 2.0x or 4.0x SDE. This guide breaks down what buyers actually look at.
The Seasonality Problem
Most landscaping businesses earn 60-70% of their annual revenue between April and September. The remaining months are either slow or dead. This scares a lot of first-time buyers. They look at December's revenue, see $8,000 instead of the $45,000 they saw in July, and start to question whether the business can actually support their family and debt service year-round.
But experienced buyers and seasoned brokers know that seasonality isn't a flaw in the business model. It is the business model. Every landscaping company in the Northeast, Midwest, or Pacific Northwest operates this way. The question isn't whether revenue fluctuates (of course it does), but how well the owner has structured the business to manage that fluctuation.
Smart sellers front-load expenses and save during peak months. They negotiate annual contracts that spread payments evenly across twelve months. They add complementary services like snow removal, holiday lighting, or hardscaping that fill the revenue gaps. The difference between a 2.0x and a 4.0x multiple almost always comes down to how effectively the owner has normalized the seasonal revenue cycle.
The takeaway: seasonality is only a problem when revenue stops and expenses don't. And businesses that solve this equation sell for dramatically more.
Seasonal Revenue Normalization
A landscaping company earning $300,000 per year isn't valued the same as another earning $300,000 per year if the revenue distribution looks different. Here's why.
Business A: Heavily Seasonal
$300K revenue, no off-season services
| Season | Revenue | % of Total |
|---|---|---|
| Spring (Mar-May) | $75,000 | 25% |
| Summer (Jun-Aug) | $120,000 | 40% |
| Fall (Sep-Nov) | $75,000 | 25% |
| Winter (Dec-Feb) | $30,000 | 10% |
Est. Value: $200K - $250K
Business B: Year-Round Revenue
$300K revenue, with snow removal & lighting
| Season | Revenue | % of Total |
|---|---|---|
| Spring (Mar-May) | $80,000 | 27% |
| Summer (Jun-Aug) | $95,000 | 32% |
| Fall (Sep-Nov) | $65,000 | 22% |
| Winter (Dec-Feb) | $60,000 | 20% |
Est. Value: $330K - $440K
Same gross revenue. Business B is worth up to $190,000 more because of year-round cash flow and a higher SDE from diversified services.
Route Density: The Hidden Value Driver
Two landscaping companies with 30 clients each can have dramatically different profitability. The difference comes down to geography.
Dense Routes
30 clients within 5 miles
- 5-8 minute drive between stops
- 12-15 properties serviced per crew per day
- Lower fuel costs ($150-200/week per crew)
- Referral-driven growth from neighbor visibility
- 40-55% gross margins typical
Higher multiple: 3.0x - 4.0x SDE
Scattered Routes
30 clients across 25 miles
- 15-25 minute drive between stops
- 6-8 properties serviced per crew per day
- Higher fuel costs ($400-500/week per crew)
- Harder to scale without adding vehicles
- 25-35% gross margins typical
Lower multiple: 2.0x - 2.5x SDE
Before listing, consider pruning outlier clients and replacing them with prospects closer to your existing clusters. Even a modest improvement in route density can meaningfully boost your margins and your sale price.
Snow Removal & Off-Season Revenue
Additional services don't just add revenue. They change how buyers perceive risk, and that shifts the multiple.
Snow Removal Contracts
Per-push and seasonal contracts fill the November through March gap. Commercial snow removal with guaranteed response times is particularly valuable because it creates contractual obligations buyers can underwrite.
+0.5x - 1.0x
multiple increase
Holiday Lighting Installation
High-margin service during October through January. Typical gross margins of 60-70% on installation and removal. Builds on existing client relationships and requires minimal additional equipment.
+0.2x - 0.4x
multiple increase
Hardscaping & Landscape Design
Patios, retaining walls, and outdoor kitchens bring higher ticket sizes and can be scheduled during shoulder seasons. However, project-based revenue is less predictable than maintenance contracts, so the multiple impact is moderate.
+0.2x - 0.5x
multiple increase
Irrigation Services
Spring startups and fall winterizations create reliable bookend revenue. Installation of new systems adds project income. This pairs well with existing maintenance contracts and creates natural upsell opportunities.
+0.1x - 0.3x
multiple increase
A Note on Equipment Valuation
Equipment is valued separately from earnings. A typical landscaping company might have $40,000 to $120,000 in equipment including commercial mowers, string trimmers, blowers, trailers, and trucks. This value is added on top of the SDE-based business valuation.
However, buyers discount heavily for deferred maintenance. A zero-turn mower with 3,000 hours and no service records might get valued at $1,500 when it cost $12,000 new. But the same mower with documented oil changes and blade replacements could be worth $4,000-5,000.
If you're planning to sell within the next 12 months, invest in maintenance records and address any deferred repairs now. The return on that investment at sale time is substantial.
Residential Only
2.0x - 2.5x
SDE multiple
Mixed Res + Commercial
2.5x - 3.5x
SDE multiple
Year-Round + Contracts
3.0x - 4.0x
SDE multiple
Frequently Asked Questions
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