Landscaping

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November 28, 2024

by a searcher from Massachusetts Institute of Technology in New York, NY, USA

Looking at a $10m+ EBITDA landscaping business (mostly commercial). What are general multiples these days for commercial landscaping businesses? How about residential landscaping? I would imagine the multiples step up as the business scales? Thank you and happy Thanksgiving!

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Reply by a searcher
from University of Pennsylvania in Los Angeles, CA, USA
I'd think a commercial business of that size trades somewhere in the high single digits. I'd (respectfully) disagree with Ishan, I think a big asset with low churn and high margins would certainly be an investable business from the perspective of raising outside equity / debt.

How did you source this deal?
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Reply by a lender
from University of Southern California in Los Angeles, CA, USA
10m+ will trade at 6x-8x. Pretty much impossible to pull a deal of that size as an independent sponsor. That size is larger than what SBA / SBIC will fund and will need an excellent track record, committed capital and a large equity check###-###-#### % equity).
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