2027 Landscaping Company Valuation Report: EBITDA Multiples by Revenue Band
If you own a landscaping company, you have probably wondered what it’s worth. This 2027 planning guide explains landscaping business valuation multiples using transaction evidence from 2021–2026 and BMI estimates, with EBITDA benchmarks by company size and business type. These are historical benchmarks and planning estimates, not observed 2027 sale prices.
For planning purposes, BMI estimates a range of 3.4x to 7.5x adjusted EBITDA for landscaping companies with $2 million to $50 million in revenue. EBITDA and revenue size set the range. How much revenue recurs under maintenance agreements and lawn programs, how the company sources its labor, the condition of its fleet, and the owner’s role in daily operations decide where a company’s valuation ends up within that range.
Landscaping services (NAICS 561730) | Commercial landscape maintenance, design-build, lawn care, tree care, irrigation, snow and ice management | 2027 planning guide | Evidence from 2021-2026 | Source report updated October 2026 | BMI Mergers & Acquisitions
Key Takeaways
- BMI’s revenue-band benchmarks range from 4.0x to 6.8x adjusted EBITDA, with typical ranges of 3.4x to 7.5x. They are estimates blended from several sources, not a list of observed transactions.
- Recurring revenue, customer retention, labor compliance, management depth, and fleet condition influence where a business falls within its range.
- Use the right earnings measure: an SDE multiple cannot be applied to EBITDA. Enterprise value also differs from the seller’s take-home proceeds.
Before applying a multiple: EBITDA means earnings before interest, taxes, depreciation, and amortization. This report uses adjusted EBITDA, so the earnings figure must support the adjustments a buyer will accept. Read SDE vs. EBITDA and enterprise value vs. seller proceeds before estimating what you could receive.
Landscaping Company EBITDA Multiples by Revenue Band
Larger companies sell for higher multiples because they are less risky: a larger basket of customers, more managers, more systems, and more ability to absorb shocks. Size also changes who is buying. Smaller companies sell mostly to individual buyers and local competitors. Larger companies draw private equity firms and family offices, either buying a first company in the sector (a platform) or adding to one they already own (an add-on or tuck-in).
| Annual Revenue | Benchmark Multiple | Typical Range | Most Active Buyers |
|---|---|---|---|
| $2M-$5M | 4.0x | 3.4x-4.4x | Individual buyers (often SBA-financed), local competitors |
| $5M-$10M | 4.8x | 3.5x-6.0x | Individual buyers, regional operators, PE-backed add-ons |
| $10M-$25M | 5.7x | 4.5x-7.0x | Regional operators, PE platforms and add-ons |
| $25M-$50M | 6.8x | 6.0x-7.5x | PE platforms, regional and national consolidators |
How to read this table. Multiples are enterprise value (the price of the whole business before debt is paid off) divided by trailing twelve-month adjusted EBITDA. Benchmarks and Typical Ranges are BMI estimates blended from private transaction databases (including GF Data, Dealstats, Peercomps, and Grata), published industry deal data, and our own deal observations from 2021 through 2026. The revenue bands assume margins typical for the industry.
Below $5 million revenue: the buyer is often an individual using an SBA 7(a) loan, and recent SBA changes have significantly impacted who is eligible for that type of loan. Under rules effective March 1, 2026, 100% of a borrower’s direct and indirect ownership must be held by U.S. citizens or U.S. nationals whose principal residence is in the United States, its territories, or possessions. For an initial business acquisition financed through SBA 7(a), the minimum equity injection is 10% of total project cost. Qualifying seller financing on full standby may cover part of that requirement, subject to SBA limits and lender approval. This shrinks the buyer pool for these companies, but it is not yet clear if it will lower overall valuations. See the SBA lender requirements.
EBITDA Multiples by Business Type, $2M-$10M Revenue
The table below breaks out companies with $2 million to $10 million in revenue, the size range with the most available deal data. The multiple spread is narrow across sub-sectors: medians run from 3.9x to 4.3x. Lawn care leads on both multiple and margin, and design-build and installation trails on both due to their non-recurring nature.
| Business Type | Median EBITDA Multiple | Typical EBITDA Multiple Range | Median EBITDA Margin | What It Includes |
|---|---|---|---|---|
| Lawn care | 4.3x | 4.0x-4.8x | 19.4% | Mowing, fertilization and weed control programs, residential and commercial lawn service |
| Tree care | 4.1x | 3.2x-5.4x | 16.6% | Tree trimming and removal, stump grinding, arborist services |
| Grounds maintenance | 4.0x | 3.6x-4.7x | 16.7% | Landscape maintenance, irrigation service, snow removal, property maintenance |
| Design-build and installation | 3.9x | 3.6x-4.7x | 13.2% | Landscape design, installation, hardscape, construction |
How to read this table. Multiples are deal value divided by trailing twelve-month EBITDA as reported to transaction databases (including GF Data, Dealstats, Peercomps, and Grata), found in published industry deal data, and BMI’s own deal observations from 2021 through 2026. Ranges show the middle half of deals (25th to 75th percentile).
Recurring vs. Non-Recurring Revenue
Buyers pay for revenue that will continue into the future. In landscaping, that means maintenance agreements and lawn care programs, plus enhancement/add-on work.
Among $2M-$10M revenue firms, companies described only by recurring work (maintenance, lawn care, grounds) sold for a median 4.2x EBITDA. Companies described only by project work (design, installation, hardscape, construction) sold for 3.5x. Median EBITDA margins were the same, about 15%. With profit equal, the 0.7x gap reflects revenue predictability.
Note that recurring does not necessarily mean long-term. Even BrightView’s maintenance agreements can be cancelled by either party on 30 days’ notice. Buyers look for retention, not strict contract length. BrightView reported 83.5% customer retention in February 2026, up about 450 basis points; high-performing operators often report above 90%.
| Revenue Type | Examples | How Buyers Often Treat It |
|---|---|---|
| Maintenance agreements | Weekly mowing, edging, pruning, and bed maintenance; irrigation inspections and seasonal color written into the scope. | Valued as recurring (assuming good tenure). |
| Lawn care programs | Fertilization and weed control rounds that renew each year. | Valued as recurring. Buyers check how many customers cancel each year. |
| Enhancements from existing clients | Mulch, plant replacement, extra seasonal color, irrigation repairs, and tree work sold to maintenance clients outside the contract scope. | Often higher margin than maintenance. Credited when it actually does recur, usually averaged over two to three years. |
| Snow and ice management | Seasonal fixed-fee, per-push, per-event, and time-and-materials snow contracts. | Averaged over several winters. |
| Design-build and construction | New installations, hardscape, renovations, and builder or developer work. | May be valued separately from other services, often at a lower multiple. |
Owners planning a sale should report maintenance, enhancements, lawn programs, snow, and construction as separate line items on the P&L.
Deal Killers: Issues That Can Stop a Sale
These issues can decide whether a buyer signs a letter of intent and whether the deal survives diligence intact. When a buyer goes ahead anyway, it usually protects itself through a lower price, an escrow, or a specific indemnity. Most can be fixed with enough lead time.
| Issue | Why It Matters to a Buyer |
|---|---|
| I-9 compliance and work authorization | Many buyers now review I-9s. Substantive I-9 errors can lead to civil penalties without the correction period afforded to technical or procedural failures. Current federal regulations provide penalties of $288 to $2,861 for each individual affected by an employment-verification violation. Employers should review and correct records promptly; correction does not necessarily eliminate liability. See 8 CFR 274a.10. |
| H-2B compliance | An H-2B labor certification covers only the named employer and transfers only to a successor in interest, which can also inherit the seller’s back wages and DOL debarment. Debarment bars a company from the program for one to five years. |
| Worker classification | Workers misclassified as independent contractors can create back payroll-tax, overtime, and workers’ compensation liability. Franchise and unit-owner models can carry similar risk. Buyers may require an indemnity backed by escrow, or simply walk away. |
| Wage-and-hour exposure | Off-the-clock work, unpaid travel between job sites during a shift, missed meal and rest breaks, and overtime across multiple sites can each create liability. A pending or recent class action can hold up a deal until it is resolved. |
| Financial records | Most buyers ask for at least three years of clean, accurate accrual-basis financial statements (ideally reviewed or audited by a CPA) with support for every adjustment. Many buyers will commission a quality of earnings review to test the books. |
| Contract assignment | In an asset sale, contracts with anti-assignment clauses need customer consent, and federal contracts need government approval (novation). In a stock sale, change-of-control clauses can give customers the same exit. Franchise agreements usually require the franchisor’s approval to transfer. No matter what, the buyer will want to know which accounts need approval or signature. |
| Insurability | A clean loss history on slip-and-fall, property damage, auto, theft, and workers’ compensation claims helps a buyer add the company to its insurance program at a workable cost. A poor one can raise premiums or keep the company off the program. |
| Sales tax | Many states tax lawn care/landscaping differently than maintenance/construction. Uncollected tax can pass to the buyer. In Georgia, for example, a buyer of business assets is liable for the seller’s unpaid sales and withholding taxes, and no contract term between the parties removes that liability. |
| Customer contract terms | Uncapped liability, broad indemnities, or slow payment terms shift risk onto the service provider. A buyer may discount for risk or exclude the account. |
What Moves the Multiple Within a Band
Once the deal killers are cleared, buyers price a company up or down within its revenue band.
| Factor | Supports a Higher Multiple | Pulls the Multiple Lower |
|---|---|---|
| Revenue Quality | ||
| Recurring revenue share | Most revenue from scheduled service under ongoing agreements (typically maintenance and lawn care). | Revenue that depends on construction, one-time projects, or work the owner sells personally. |
| Customer tenure | Accounts that renew for years, with a documented reason for every loss. | Frequent losses to competitors, or losses with no explanation. |
| Enhancement sales | Extra work (mulch, plantings, irrigation repairs, tree work) sold year after year to existing maintenance clients. | Extra work that swings widely from year to year, or that only the owner sells. |
| Customer concentration | No single customer, property management firm, or HOA management company whose loss would materially change profits. | One customer or management firm holding a large share of revenue (20% or more), especially if its contracts are up for rebid. |
| Written agreements | Signed agreements that set scope, pricing, and notice terms, and allow transfer to a new owner. | Handshake arrangements, or contracts that require customer consent to transfer. |
| End markets | Commercial, HOA, and institutional maintenance accounts. | Heavy reliance on builder and developer work, which rises and falls with new construction. |
| Pricing terms | Annual escalators and a record of increases; fuel and material costs passed through. | Fixed prices with no escalator. |
| Rebid exposure | Private accounts that renew without a formal bid. | Municipal, school, and other public accounts rebid on a fixed cycle. |
| Seasonality | Revenue spread across the year through 12-month agreements, snow on seasonal contracts, or winter tree and pruning work. | Revenue concentrated in a few months, with crews and equipment idle in winter. |
| Snow mix | Snow a minority of profit, mostly on seasonal fixed-fee contracts, with every service visit logged. | Snow a large share of profit, mostly per-push or time-and-materials work. |
| Growth | Steady growth from new accounts and added services for existing ones. | Declining revenue, or growth only from projects. |
| Labor And Margins | ||
| Margins | EBITDA margins at or above peers in the same type of business. | Margins well below peers, which leaves a buyer less room for error. |
| Job costing | Labor hours and cost tracked by property and crew, and numbers kept close to what the job was bid at. | Jobs bid without measuring labor hours; margin known only at year-end. |
| Overtime | Low overtime or overtime priced into bids. | Unplanned overtime from short crews and missed schedules. |
| Workforce stability | Crew leaders who return season after season, steady recruiting, and tracked turnover. | High turnover that leads to short crews, missed visits, and customer complaints. |
| H-2B reliance | A clean H-2B program with returning workers and a multi-year approval record, or a mostly domestic workforce. | Peak-season staffing that depends on a visa lottery. |
| Workers’ comp experience mod (EMR) | Below 1.0, with tree work and landscape payroll in the correct class codes. | Above 1.0. Higher premiums, and questions about what is driving claims. |
| Labor sourcing | Work done by the company’s own W-2 crews. | Heavy use of subcontractors, labor brokers, or 1099 crews. |
| Operations And People | ||
| Management depth | A management team that runs daily operations and holds customer relationships without the owner. | The owner holds the key customer relationships and brings in most new work, with little management layer beneath. |
| Systems | Estimating, scheduling, job costing, and billing in one synced platform. | Spreadsheets and disconnected systems the buyer has to replace. |
| Fleet and equipment | Trucks, trailers, and mowers in good repair, with a replacement schedule. | An aging fleet the buyer will need to replace soon after closing. |
| Licenses and certifications | Pesticide, irrigation, tree, and contractor licenses held by the company or by several employees. | Licenses held only by the owner. Many do not transfer, so the buyer needs a licensed replacement before closing. |
| Route density | Properties clustered near the yard, which cuts drive time and helps supervision. | The same revenue spread across long routes and scattered markets. |
| Risk And Compliance | ||
| Insurance and loss history | A clean loss history on auto, general liability, and workers’ comp, so the buyer can add the company to its insurance program at a workable cost. | Frequent auto, injury, or other claims that raise premiums. |
| Safety and DOT compliance | A written heat illness plan, training records, and complete DOT driver files. | No written program, missing driver files, or a recent serious injury. |
| Fuel and chemical storage | Fuel tanks and pesticide storage with the required spill plans and application records. | Historical issues and/or missing records. |
| Financial Hygiene | ||
| Service-line reporting | Revenue and gross margin reported separately for maintenance, enhancements, lawn programs, snow, and construction. | One blended revenue line. |
| Owner and related-party expenses | Personal and business finances kept separate, and any rent paid to the owner for the yard set at market rate. | Personal expenses run through the company. Below-market rent on an owner-held yard becomes a negative adjustment to EBITDA. |
| Receivables | Current receivables and disciplined collections. | Aging receivables. Slow collections increase working capital investment for buyers and can leave money on the table for sellers. |
| Prepaid revenue | Prepaid lawn programs tracked as owed work until it is done. | Prepaid cash already spent with the work still owed. |
Considering a Sale?
If you own a landscaping, lawn care, or tree care company and are weighing a sale, recapitalization, or other transaction, contact Josh Harris at BMI for a confidential conversation about what your company is worth.
Josh is an M&A Advisor, trained attorney, Army veteran, and former owner/operator in the labor-heavy business services sector. He built his company to more than $30 million in annual revenue and has recently been through multiple industry transactions, both as a seller and on a buy-side team.
At BMI, we know the major consolidators and private equity buyers of landscaping companies. When the right buyer is not among them, BMI's database of 34,000+ strategic and financial buyers, including 14,000+ private equity groups and family offices, brings more to the table. BMI has spent more than 25 years buying, selling, and managing business acquisitions nationwide, and we are ready to put that experience to work for you.
Joshua C. Harris
Senior M&A Advisor │ BMI Mergers & Acquisitions
jharris@bmimergers.com | (484) 302-2747 | www.bmimergers.com
Philadelphia · New York · Charlotte
Some Associates of BMI are registered representatives of, and securities transactions are conducted through, StillPoint Capital, LLC, Member FINRA and SIPC
This report is general information for business owners. It is not legal, tax, accounting, or investment advice, and reading it does not create an attorney-client or advisory relationship. Valuing a specific company requires a review of its financials and contracts.
Frequently Asked Questions
How do I value a landscaping business?
Buyers usually price an established landscaping company on a multiple of adjusted EBITDA. A company with $12 million in revenue and $1.5 million in EBITDA, at the 5.7x benchmark for the $10M-$25M band, implies an enterprise value of about $8.6 million. Recurring revenue share, labor compliance, fleet condition and the owner’s role move it within that band’s 4.5x-7.0x range. Revenue multiples are sometimes quoted as a shortcut, but they ignore differences in margin between companies.
Is the enterprise value what I take home?
No. Deals are usually priced cash-free and debt-free: the seller keeps the company’s cash and pays off its debt from the proceeds. The price also assumes a normal level of working capital which is adjusted at closing if the actual figure differs. Equipment loans and leases are usually paid off or treated as debt. Part of the price may be paid later through an earnout tied to future performance, a seller note, or equity the seller keeps in the buyer’s company (rollover). Taxes come last and depend heavily on how the deal is structured.
Why do larger landscaping companies sell for higher multiples?
Larger companies are less risky: a lost account or a bad season is spread across a larger business. They also draw more buyers with more capital. A $50 million company attracts private equity platforms paying for density and a management team to build on. A $3 million company draws a smaller pool, often individuals using SBA-backed loans, where lender coverage requirements limit how much they can pay.
How do buyers treat snow revenue?
Buyers average it. They look at snow revenue and EBITDA over several winters rather than paying for one heavy season. Seasonal fixed-fee contracts, which pay the same regardless of snowfall, earn more credit than per-push or time-and-materials work.
Does seasonality lower my valuation?
Not if it is normal for your market and documented. Buyers price seasonal businesses every day. Seasonality usually costs sellers money through deal terms instead: a working capital target that ignores the closing month, prepaid lawn revenue treated as debt, or a weak season sitting in the trailing twelve months. Each can be negotiated or planned around.
Does relying on H-2B workers hurt my valuation?
Not by itself. Many of the largest landscaping companies rely on the program. Buyers look at two risks: the annual visa lottery, and compliance. A multi-year record of approved petitions, returning workers, and clean wage and travel-reimbursement records supports value. Because the labor certification stays with the employer, the deal structure and the timing of closing against the petition calendar both matter.
Should my business be valued on SDE or EBITDA?
Seller’s discretionary earnings (SDE) adds back the owner’s full pay and is common for owner-operated businesses that sell for under about $2 million. EBITDA is used once a company can run under hired management, and it is what private equity and strategic buyers use. In our $2M-$10M data, the median deal was 4.0x EBITDA but 3.2x SDE. A multiple quoted for one should not be applied to the other.
Why do websites say landscaping businesses sell for 2x to 3x?
Most published figures come from small-business listing data. BizBuySell’s 945 landscaping and yard service sales from 2021 through 2025 had a median revenue of $708,412 and a median multiple of 2.3x cash flow (SDE). Those are SDE multiples on very small owner-operated businesses, not EBITDA multiples on lower middle market companies.