Questions a landscaping buyer will ask
How much revenue is under maintenance contracts?
Weekly mowing and grounds contracts renew year after year. One time installs and design jobs are worth less per dollar because they have to be sold again.
What happens in winter?
Snow removal, holiday lighting or a deliberate slow season all work. Buyers just want to see how you carry payroll and cash from December to March.
How old is the equipment?
Mowers, trucks and trailers wear out fast. A clean replacement schedule and maintenance records make the price easier to defend.
Are your crew leaders staying?
Crew leaders who know the routes and the customers are what keep accounts from walking when you leave.
Recurring Contracts Set the Tone
The strongest landscaping companies to sell have a base of recurring maintenance work: office parks, homeowner associations, apartment complexes and long time residential customers.
Gather your contract list with start dates, renewal history and annual value. A buyer will want to see how many accounts you kept last year and how many you lost.
Commercial Accounts and Concentration
Big commercial accounts are great revenue and a real risk. If one property manager controls a large share of your sales, a buyer will price that in or ask for part of the payment to depend on keeping the account.
Spreading revenue across more customers, even over a year, can raise the multiple.
Seasonal Labor
Many landscaping companies rely on seasonal workers. Buyers will ask how you recruit each spring, how many return and what you pay. Clean payroll records matter here.
Reading the Numbers
Expect a buyer to look at revenue by month, margin by service line and equipment spending over several years. A company that has been underinvesting in equipment will see that taken off the price.
Our page on what is my business worth explains how buyers recast your profit, and how selling works covers the steps from first call to close.
Getting Ready Before You List
A year or two of preparation can change the number. Put handshake accounts on simple written agreements. Write down routes and schedules so they are not only in your head.
Separate personal spending from the business accounts. Replace the oldest equipment, or at least document its condition honestly so a buyer isn't surprised.
Then let a crew leader run a week without you and see what breaks. Whatever breaks is what a buyer will worry about.
And keep selling new contracts while you prepare. Steady growth through the sale is the best story you can tell.
Filings After the Sale
Equipment means a personal property declaration in the county where it is kept, and payroll means an unemployment account to settle. Start with Jackson County personal property declaration after a sale if your yard is in Jackson County.
For a private estimate of what your company could bring, send the form or call (816) 555-0167.