Landscaping & Yard Service Business Valuation Benchmarks

Business owners, prospective buyers, and industry investors rely on a diverse set of financial benchmarks to assess the value of a business. We have compiled data from current BizBuySell listings and sold businesses to provide insight into the business for sale market and important benchmarks for pricing and evaluating landscaping & yard service businesses relative to industry standards.

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Highlights of Landscaping & Yard Service Businesses Sold on BizBuySell

Landscaping and yard service businesses listed and sold on BizBuySell are comprised primarily of locally owned small businesses engaging in lawn care, landscaping, and yard services for commercial and residential customers. Most of these businesses rely on yard maintenance services to produce a consistent, recurring revenue stream. In addition, most offer higher ticket services such as landscape design and landscaping services.

Landscaping & Yard Service Business Transaction Trends

The median sale price of landscaping, lawn care, and yard service businesses has increased by 7% from 2021 through 2025. Even as increasing interest rates put pressure on buyers' ability to pay, these businesses continue to see their average values improve, dropping modestly in 2024 before rising 20% in 2025.

Landscaping & Yard Service Business Valuation Multiples

Valuation, or pricing, multiples are financial tools that allow for comparisons between businesses that have different levels of revenue and earnings. They represent the sales price of a business relative to its financial performance, and given enough individual business sales data, they represent what the market is willing to pay for a business given its revenue and earnings.

Valuation Trends

Business values and associated multiples fluctuate over time, influenced by a variety of macroeconomic factors such as interest rates, inflation, consumer spending, and overall economic growth. For landscaping, lawn care, and yard service businesses reported sold on BizBuySell, valuations have increased, with the average earnings multiple growing consistently from 2.3 to 2.6 over the past five years, and the average revenue multiple improving from 0.65 to 0.76 during the same time.

Earnings Multiples

Earnings multiples represent the value of a business relative to its owner’s discretionary earnings or "cash flow". Arguably the most important valuation metric - as seller's discretionary earnings will often dictate how much a buyer is able to borrow to finance the business acquisition - most valuations will hinge on the earnings multiple.

Revenue Multiples

Revenue multiples represent the value of a business relative to its overall sales or revenue. In conjunction with an earnings analysis, revenue multiples are commonly used to value a business based on its overall sales.

How to Interpret These Multiples

Recent Listings vs. Sold Businesses

We calculate and provide valuation multiples from two sources: Current and recent listings of landscape and yard service businesses for sale, and our database of "comparable" businesses sold on BizBuySell. Multiples based on listing data are always higher due to owners setting asking prices above what their businesses might typically sell for. This occurs either intentionally as a negotiation strategy, or incidentally due to business owners’ common tendency to overvalue their own businesses.

Multiples based on comparable businesses - "comps" in business broker parlance - are much more useful as they represent the prices at which businesses ultimately get sold. Business brokers and valuation professionals will always turn to local comps when pricing businesses for sale or evaluating businesses for acquisition. We provide both sets of data at the national level to offer general context. Local business sale comps by sales class suitable for pricing and negotiations are available in BizBuySell's Business Valuation Report.

Quartiles, Median, and Average

No two businesses are identical, and as such, valuation multiples exist in a range. We have carved out four common values within this range: Lower quartile represents the value under which the lowest 25% of valuation multiples fell. Upper quartile represents the value above which the highest 25% of multiples fell. Median is the middle of the range, and average is the mean of the set. Mean is almost always higher than the median, driven by a minority of high volume, high value businesses sold at multiples above the upper quartile.

Businesses with consistent financial performance, above average revenue and earnings, demonstrable growth potential, low owner involvement, unique competitive advantages, and a seller willing to finance will command a multiple at or above the upper quartile. Lower volume businesses with thin profit margins, full-time owner involvement, and many direct competitors will trade at or below the lower quartile. Most businesses will fall somewhere in the middle.

Based on this data, half of landscaping, lawn care, and yard service businesses are valued between 1.70- and 3.01-times their annual seller discretionary earnings, with 25% of well-run, larger businesses trading above this range, and 25% of smaller, less desirable businesses trading below.

Financial Benchmarks

To determine how a business compares in terms of revenue and earnings relative to industry peers, it’s necessary to have some insight into industry standards. "Benchmarking" describes the practice of comparing a business’s financial performance to typical industry standards to determine where a business falls relative to other businesses in the same industry. These benchmarks can help guide owners and investors towards appropriate valuation multiples from the range above.

To that end, we have aggregated industry financial ranges useful for comparing an individual landscape and yard care business to its peers in the market.

Landscaping & Yard Service Business Revenue and Earnings Trends

Median revenue of landscaping and yard service businesses sold on BizBuySell has generally been improving with some volatility through 2025. At the same time, profit margins have held, with median owner earnings surpassing $200k in 2025. From 2021 through 2025, median revenue increased 9.91%, while median seller's discretionary earnings increased 10.09%.

Earnings Ranges

Discretionary earnings (used interchangeably with the terms "cash flow" and seller's discretionary earnings or SDE) is often the crux of business valuations, so it is important to benchmark it relative to other businesses traded on the market. Below you will find discretionary earnings ranges for landscape and yard service businesses sold over the past five years, as well as recent for sale listings.

Revenue Ranges

Sales volume plays a large role in business valuation, as it measures the size of the potential income opportunity for new ownership. It's not uncommon for buyers to select an earnings multiple range based on overall revenue. The table below includes revenue ranges of landscape and yard service businesses sold over the past five years, as well as recent for sale listings.

How Revenue and Earnings Level Affects Business Values

Clearly higher levels of earnings lead to higher valuations, even given the same multiple. However, valuation multiples also tend to rise with business sales volume. Larger landscaping and yard service companies that generate higher sales (and maintain reasonable profit margins) tend to sell for earnings multiples on the higher end. So, a landscaping company consistently generating sales close to $1.5MM annually may sell for an earnings multiple over 3, where a smaller yard care business with sales below $400k may trade around 1.7 times earnings or lower.

This tendency for higher sales volumes to fetch higher valuation multiples is largely driven by the economics of business acquisition financing. Higher volume businesses give buyers more cushion to cover debt service obligations and still have enough left over to pay the new owner a reasonable income.

Sector Comparisons

For a more complete understanding of the market and valuation standards, consider comparisons within the broader service sector when benchmarking landscape and yard service businesses. The chart and table below include key metrics from sales of service businesses on BizBuySell between 2021 and 2025.

Compared to other businesses in the service sector, landscaping and yard service businesses tend to be discounted thanks to a low barrier to entry, and as a result, high competition. Buyers in this space tend to look for substantial recurring revenue in the form of maintenance agreements and long-term contracts. Annual revenue above $1MM is key to getting a decent valuation multiple, and commercial contracts will also increase valuation.

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