How to Sell a Landscaping Business With Maintenance Contracts (2025 Guide)
How to Sell a Landscaping Business With Recurring Contracts
Let us take a guess—your email inbox is full of strangers wanting to buy your landscaping company?
The landscaping industry has become a prime target for Private Equity (PE) firms and strategic buyers looking to consolidate stable, contract‑driven operations. Well‑run landscaping businesses with recurring maintenance work can be incredibly valuable in the right hands.
Whether you're eyeing retirement, exploring new ventures, or taking advantage of favorable market conditions, selling your landscaping business demands thorough preparation and strategic planning. This guide walks you through the process step by step, with a special focus on businesses built around recurring contracts.
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Why Landscaping Companies Are Valuable Businesses
Landscaping companies have specific characteristics that impact their valuation and attractiveness to buyers. Your company's value is primarily based on:
Recurring maintenance contracts and seasonal revenue stability
Equipment fleet value and condition
Service territory and market penetration
Skilled workforce and crew retention
Commercial and residential client mix
Well‑established landscaping companies often command strong valuations, particularly those with predictable revenue streams, efficient operations, and a clear growth story. Positioning your company effectively is crucial for maximizing value.
Step 1: Understand Your Company's Value
Landscaping companies are typically valued using a multiple of EBITDA, with consideration given to assets and territory value.
Definition: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a measure of a company's overall financial performance. Think of it as your company's core operational profitability before accounting and financing adjustments.
Here's what to expect:
Baseline multiple for landscaping companies: 3x–5x EBITDA*
Premium multiples (6x+) for companies with strong maintenance contracts, modern equipment, and established market presence
Landscaping companies with $500K+ in EBITDA and strong financials tend to attract the most buyer interest. If you're generating over $1M in EBITDA with a solid customer base, professional management, and well‑maintained equipment, you're in an excellent position to attract multiple offers.
*These multiples typically apply to companies with at least $500,000 in EBITDA. Smaller operations may see lower multiples but can still find attractive exit opportunities.
Step 2: Prepare Your Company for Sale
Before going to market, focus on these key areas:
Clean, accurate financial statements with clear revenue tracking
Updated equipment maintenance records and fleet documentation
Comprehensive client contracts and service agreements
Standardized pricing and service procedures
Employee records and training documentation
Service territory analysis and growth potential
Pay special attention to your maintenance contracts and recurring service agreements. Buyers will place a premium on predictable, contracted revenue.
If your landscaping company has a base of recurring commercial or HOA maintenance contracts, you are already ahead of many sellers.
How Buyers Look at Your Recurring Contracts
Buyers will look closely at:
Percentage of revenue from contracted maintenance vs. one‑off projects
Average contract length and renewal history
Customer concentration (no single client >15–20% of revenue)
Gross margins on maintenance vs. installation work
To maximize value before a sale:
Renew key contracts for at least 12–24 months where possible.
Document scope, pricing, and renewal terms clearly in writing.
Move any handshake agreements onto written contracts if feasible.
Show 2–3 years of maintenance revenue by customer to prove stability.
Businesses that can show 40%+ of revenue from recurring maintenance with solid retention usually command stronger multiples than project‑heavy landscapers.
Step 3: Minimize Owner Dependence
This is crucial for landscaping companies, where owners often handle key client relationships and operational decisions. The more your company can operate without your daily involvement, the more valuable it becomes to potential buyers.
Start transitioning:
Client relationships to account managers
Project estimating to your senior team (this is key)
Crew scheduling to operations managers
Equipment maintenance oversight to fleet managers
Buyers want to see that the “machine” of the business keeps running smoothly even when the owner steps back.
Step 4: Partner with an M&A Advisor
The right advisor can help you:
Position your company's market advantages
Identify strategic buyers in the landscaping and facilities maintenance space
Navigate complex deal structures
Manage the due diligence process
Maximize your exit value
Look for an advisor with experience in green‑industry or home‑services M&A who understands current market dynamics, deal terms, and what different buyer groups (PE, strategics, searchers) are paying for assets like yours.
Step 5: Run a Strategic Sale Process
A well‑structured process should:
Target both strategic buyers (larger landscaping companies, facilities management firms) and financial buyers
Present your company's growth potential and market position
Highlight your service territory, contract base, and customer relationships
Address potential buyer concerns proactively (seasonality, crew retention, equipment age, etc.)
Your goal is to create a competitive environment where multiple qualified buyers are reviewing your business at the same time, rather than negotiating with a single suitor from a cold email.
Step 6: Manage the Transition
Landscaping company transitions require careful planning:
Communicate strategically with customers and employees
Maintain service quality during due diligence and closing
Plan for equipment and vehicle transfers
Consider earn-out or seller‑financing structures that align incentives
A smooth transition helps preserve the value you've built and sets the new owner up for success, which is especially important if part of your proceeds are tied to future performance.
Common Pitfalls When Selling a Landscaping Company
Avoid these common mistakes:
Aging equipment: Buyers prefer modern, well‑maintained fleets and equipment. Consider strategic upgrades or documented maintenance before selling.
Seasonal revenue fluctuations: Work to smooth out revenue through year‑round service contracts, snow and ice management, or complementary services.
Poor financial records: Clean books with clear job‑costing and segment reporting are essential. Invest in proper financial management well before selling.
Undefined service territory: Focus on building strong market presence and customer loyalty in clearly defined areas instead of scattering crews everywhere.
Key Metrics Buyers Look At
EBITDA Margin: 12–20% (for mature, well‑run companies)
Gross Profit Margin: 35–50% (after direct labor and materials)
Customer Concentration: No single customer >15% of annual revenue
Contract Revenue Mix: At least 40% recurring maintenance contracts
Equipment Age: Average fleet age under 5 years
Crew Retention: Average tenure >2 years for key team members
Growth Rate: 10–15% annual revenue growt
Valuation Rules of Thumb (The “Gold Standards”) for Landscaping Companies
Buyers use simple benchmarks to size up a business quickly. Make sure you’re within these healthy ranges:
Final Thoughts: Maximizing Your Landscaping Company's Exit Value
Selling your landscaping company is a significant milestone that can lead to a substantial liquidity event. With proper preparation and guidance, you can maximize the value of your years of hard work.
At Breakwater M&A, we specialize in helping green industry business owners navigate the exit process. If you're considering selling your landscaping company—whether now or in the future—we're here to help you achieve the best possible outcome.
Schedule a confidential call with our team HERE.
Frequently Asked Questions (FAQs) About Selling a Landscaping Business
How are landscaping businesses valued?
Most landscaping companies are valued on a multiple of EBITDA, with stronger multiples for recurring maintenance revenue, diversified customers, and well‑maintained equipment. Project‑heavy firms with lumpy revenue usually trade at lower multiples.
What multiples do landscaping companies typically sell for?
Many owner‑operated landscaping companies sell in the ~3x–5x EBITDA range, with higher multiples possible for larger businesses that have strong contracts, clean books, and professional management.
How important are recurring contracts when selling a landscaping business?
Recurring commercial or HOA maintenance contracts are one of the biggest value drivers. They reduce seasonality, stabilize cash flow, and give buyers confidence they are buying a durable income stream, not just a phone number and some trucks.
Can I sell a smaller landscaping business?
Yes. Smaller owner‑operator businesses can still be sold, often to individual buyers or searchers, but buyers will scrutinize how much of the work and customer relationships rely on you personally.
Should I fix or replace equipment before I sell?
You do not need a brand‑new fleet, but buyers discount old, unreliable equipment. It often pays to fix obvious issues, catch up on maintenance, and document fleet condition so buyers see a well‑run operation rather than deferred problems.
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