What It’s Worth: How Much Is a Landscaping Business Really Worth?
Landscaping isn’t just about curb appeal—it’s a strategic investment that can raise a property’s value by 15% to 20%. Whether you’re a homeowner planting trees or an entrepreneur managing a landscaping crew, it’s clear this industry is rooted in opportunity. Let’s dig into the business side of green spaces and how landscaping companies are valued, sold, and grown.
The Real Value of Landscaping Landscaping can significantly increase real estate values. A single-family home with large trees and mature gardens can command tens of thousands more than a similar property without them. Multifamily buildings with eye-catching outdoor aesthetics can often charge up to 10% more in rent. When it comes to first impressions, landscaping is one of the most visible and influential elements.
Landscaping Industry Trends Today’s outdoor spaces are being transformed into functional living areas. Fire pits, outdoor kitchens, and cozy seating arrangements are in demand. Millennials in particular prefer smaller, sustainable yards with features like drip irrigation, battery-powered tools, and eco-friendly fertilizers. Meanwhile, mobile apps now offer plant care advice, pest control tips, and even real-time crew tracking.
Valuation of Landscaping Companies The landscaping and lawn care industry generates $99 billion in annual revenue across 95,000 companies employing 600,000 people. Landscaping businesses typically sell for 2-4X Seller’s Discretionary Earnings (SDE) or 3-6X EBITDA. Those valued above $400,000 tend to attract more serious buyers.
Strategic buyers, such as irrigation firms or property management companies, often see greater value in these businesses due to the synergy with their existing services. In contrast, competitors may undervalue staff, equipment, and branding.
What Buyers Want Buyers love companies with recurring maintenance contracts, reliable payment histories, and happy, loyal clients. Maintenance revenue tends to be more profitable and stable than installation work. A solid online reputation, strong testimonials, and loyal, well-trained employees are also critical factors.
Efficiency matters. Businesses that use apps to schedule crews, track time, manage irrigation systems, and maintain clean financial records stand out. A streamlined operation reduces overhead and increases valuation.
Simple Landscaping Tips That Build Value Want to help your property or business thrive? Cut only the top one-third of your lawn to keep grass healthy. Water plants in the morning when they absorb moisture best. Choose native plants to simplify upkeep and make your yard more sustainable.
Selling a Landscaping Business If you’re preparing to sell, focus on clean financials, consistent growth, and staff development. Buyers—especially strategic ones—are more likely to pay top dollar if your team is well-trained, your processes are smooth, and your client base is steady. Selling to a competitor may result in a lower valuation compared to strategic buyers who value the total package: brand, crew, and operations.
Final Thoughts “The best time to plant a tree was 20 years ago; the second best time is now.” This Chinese proverb sums it up beautifully. Whether you’re building curb appeal, planting the seeds of a future business sale, or just keeping your neighborhood blooming, landscaping adds beauty and serious value. Don’t overlook the business potential growing in your own backyard.
