Does anyone have experience with landscaping businesses?

searcher profile

October 03, 2021

by a searcher from Clemson University - College of Business and Behavioral Science in New York, NY, USA

I am inquiring on a landscaping business that shows EBITDA equal to 40% of revenues (pre due diligence). If anyone has acquired and operated this type of business, can you please provide a sense of what a reasonable EBITDA margin is for the space? This business is one owner that has been running it for over 30 years. Thanks

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commentor profile
Reply by an investor
from Indiana University at Bloomington in Austin, TX, USA
I've owned several businesses in this niche. Margins in the 40% range are attainable particularly in operations with a high mix of residential to commercial client and depending on what service lines are offering. We always had 40-50% EBITDA margins. Mowing generally has lower margins than services like fertilization, landscape design, install and maintenance. If the co is into irrigation, that can be a high margin business for design, install, and maintenance - and provide a great source of recurring revenue.
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Reply by an admin
from Stanford University in Honolulu, HI, USA
For those interested in this space, please refer to the playback of ^redacted‌'s So I bought a Landscaping Company. Now What?https://www.searchfunder.com/event/view/467. You'll find other playbacks on the past events page on the main menu ► next to your upper right profile pic under events.
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