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LANDSCAPING · Q1 2026 · 2.0×–3.5× SDE band held quarter-over-quarter (n=85, BizBuySell trailing-12-month closed deals)LANDSCAPING · Maintenance vs install revenue co-mingled in 63% of deals · First Earnings Quality finding pre-LOILANDSCAPING · H-2B dependency above 20% in 29% of deals · No documented renewal pipeline = post-close operational cliffLANDSCAPING · Equipment fleet over 8 years in 34% of deals · 8–12% of revenue capex reserve requiredLANDSCAPING · Seasonal DSCR trough Dec–Feb · Monthly modeling required north of the 35th parallelLANDSCAPING · H-2B program cap 66,000 visas annually · 33,000 first-half + 33,000 second-half · Supplemental allocations discretionaryLANDSCAPING · Industry size $176B (IBISWorld 2024) · 4.5% CAGR 2020–2025LANDSCAPING · BLS 37-3011 median wage $36,440 (May 2024) · 1M+ employed; supervisor 37-1012 median $57,180LANDSCAPING · BrightView (KKR take-private 2024) · Yellowstone Landscape (CIVC) · Monarch (Charlesbank) lead PE roll-up activityLANDSCAPING · NALP industry research · Recurring maintenance contract share is dominant Pricing pillar driverJAPAN · 造園工事業 license under Construction Business Act (建設業法) · Prefectural or MLIT-issuedMETHODOLOGY · Acquidex v1.0 · Sample window 2025-05 → 2026-04 · Trailing 12 months · n=85 SMB transactionsLANDSCAPING · Q1 2026 · 2.0×–3.5× SDE band held quarter-over-quarter (n=85, BizBuySell trailing-12-month closed deals)LANDSCAPING · Maintenance vs install revenue co-mingled in 63% of deals · First Earnings Quality finding pre-LOILANDSCAPING · H-2B dependency above 20% in 29% of deals · No documented renewal pipeline = post-close operational cliffLANDSCAPING · Equipment fleet over 8 years in 34% of deals · 8–12% of revenue capex reserve requiredLANDSCAPING · Seasonal DSCR trough Dec–Feb · Monthly modeling required north of the 35th parallelLANDSCAPING · H-2B program cap 66,000 visas annually · 33,000 first-half + 33,000 second-half · Supplemental allocations discretionaryLANDSCAPING · Industry size $176B (IBISWorld 2024) · 4.5% CAGR 2020–2025LANDSCAPING · BLS 37-3011 median wage $36,440 (May 2024) · 1M+ employed; supervisor 37-1012 median $57,180LANDSCAPING · BrightView (KKR take-private 2024) · Yellowstone Landscape (CIVC) · Monarch (Charlesbank) lead PE roll-up activityLANDSCAPING · NALP industry research · Recurring maintenance contract share is dominant Pricing pillar driverJAPAN · 造園工事業 license under Construction Business Act (建設業法) · Prefectural or MLIT-issuedMETHODOLOGY · Acquidex v1.0 · Sample window 2025-05 → 2026-04 · Trailing 12 months · n=85 SMB transactions

Acquidex · Industry Atlas · Tokyo · New York

Landscaping Acquisitions · Q1 2026 · Issue 01

AQX-IR-LSC-2026Q1

Q1 2026 Landscaping Review — Maintenance vs Install, H-2B Dependency, and the Seasonal DSCR Trough

US small-business landscaping acquisitions traded in a 2.0×–3.5× SDE band over the trailing twelve months. Installation/maintenance revenue separation, H-2B visa dependency, and seasonal DSCR modeling are the structural conditions determining band placement in Q1 2026.

BY AVERY HASTINGS · CPA · FOUNDER, ACQUIDEX

Sample 2025-05 → 2026-04·n=—·Quarterly·Published 2026-05-02·Acquidex v1.0 §3.4

PILLAR 01

Earnings Quality

63%

Q1 2026 baseline

of deals co-mingled installation/enhancement revenue with recurring maintenance. Install revenue is episodic; maintenance is the recurring foundation.

PILLAR 02

Pricing

2.0×–3.5×

→ Band held

SDE band stable. Peak installation year used as baseline is the most common pricing failure in Q1 2026.

PILLAR 03

Fundability

Q4–Q1

Q1 2026 baseline

Seasonal DSCR failure window for northern-climate operations. Lenders require monthly DSCR modeling — annual average masks the trough.

PILLAR 04

Transferability

29%

Q1 2026 baseline

of deals had H-2B visa dependency with no documented renewal pipeline. Visa program continuity is a post-close operational cliff.

Q1 2026 · The Read

US small-business landscaping acquisitions traded in a 2.0×–3.5× SDE band over the trailing twelve months (n=85). Band dispersion is structural — placement runs on maintenance contract revenue share, equipment health, and labor documentation, not market timing.

The four-pillar read across Q1 deals: Earnings Quality compressed by installation/maintenance co-mingling in 63% of reviews; Pricing top-of-band locked to maintenance contract density above 60%; Fundability fall-through driven by seasonal DSCR trough and H-2B cap-lottery exposure; Transferability bottom-of-band in deals with H-2B dependency above 20% and no documented renewal pipeline.

The structural trap: presented SDE without revenue separation overstates steady-state earnings by 15–25% in installation-heavy deals. Equipment fleets averaging 9–11 years require 8–12% of revenue as capitalized capex reserve — deals not pricing this in are reset at lender appraisal.

Band time series

Q2 2025

2.0×

Lower

—

3.4×

Upper

Pre-supplemental visa baseline

Q3 2025

2.0×

Lower

—

3.5×

Upper

Cap-lottery results begin to filter into deal flow

Q4 2025

2.0×

Lower

—

3.5×

Upper

FY2026 supplemental visa announcement Nov 2025

Q1 2026Current

2.0×

Lower

—

3.5×

Upper

Spring-season prep + monthly DSCR modeling becomes lender standard

AQX-IR-LSC-2026Q1·2.0×–3.5×ReadBandsMethod

Executive summary

Four findings shaping Q1 2026 landscaping deal flow.

01

Principal finding

Installation and enhancement revenue was co-mingled with recurring maintenance revenue in 63% of deals reviewed. Installation is episodic and tied to construction activity, housing starts, and owner relationships that do not transfer; maintenance contract revenue is the fundable, recurring foundation. Separating the two is the first step in any lender-grade SDE analysis — and the most common Earnings Quality finding in the sample.

Further findings

  • 02

    Finding 02

    H-2B visa dependency appeared in 29% of deals with no documented renewal pipeline, prior-year slot history, or backup staffing plan. The H-2B cap lottery creates genuine operational discontinuity risk — businesses that failed to receive H-2B allocations in prior seasons faced documented revenue shortfalls of 20–35%. This is a post-close operational cliff that must be quantified before pricing.

  • 03

    Finding 03

    Seasonal DSCR trough failure for northern-climate operations remains a structural financing challenge. Annual DSCR averages mask Q4–Q1 cash flow troughs where debt service coverage can drop below 0.80× for 3–5 consecutive months. SBA lenders are increasingly requiring monthly DSCR modeling, not annual averages, for landscaping businesses operating north of the 35th parallel.

  • 04

    Finding 04

    Equipment average age exceeded 8 years in 34% of deals, with deferred replacement capex not reflected in the headline multiple. Mowers, trailers, and trucks at end of useful life create immediate post-close capex demand that erodes the effective multiple. Buyers using an SDE multiple without a separate equipment reserve calculation (8–12% of revenue) are overpaying structurally.

01

Section 01 · Industry Snapshot

A $135B services market, fragmented at the SMB level.

A $176B services market growing ~4.5% annually (IBISWorld), with the SBA NAICS 561730 size standard at $9.5M. Acquisition opportunity is structurally durable — fragmentation persists despite a decade of PE roll-up — but scale alone does not earn top-of-band placement.

Growth rate · 2020–2025

4.5% CAGR

IBISWorld industry report (NAICS 561730)

Segment composition

% of total

Commercial maintenance~50%
Residential maintenance & service~30%
Design-build & enhancement (installation)~20%

Acquidex sample window 2025-05 → 2026-04, n=85 SMB landscaping transactions

What it means

For the buyer

Multiple expansion will not come from sector tailwind — only structural quality (maintenance share, equipment health, labor documentation) earns up-band placement.

For the broker

Sub-$1M SDE listings trade at the bottom of the band regardless of presented margin; size narrative will not move a buyer pool that prices on structure.

For the lender

Sector-level credit risk is benign — fragmentation and seasonal trough are the fall-through drivers, not industry cyclicality, so underwrite operator-level continuity.

For the seller

Path to upper-band placement is operator-quality positioning ahead of listing; maintenance contract documentation and H-2B history are the two highest-ROI pre-listing fixes.

02

Section 02 · Industry Structure

How demand and friction shape the competitive forces.

Climate-driven seasonality, structural labor shortage, and the H-2B cap-lottery dynamic are the three durable headwinds. Against them sit commercial maintenance contract growth, residential outdoor-living spend resilience, and equipment OEM consolidation. The competitive structure that emerges: a high-rivalry, mid-supplier-power industry where structural friction concentrates at the labor pool and seasonal cash-flow management, not at customer acquisition.

TAILWINDS

Demand drivers

Commercial property management contract growth

high

Pressures · rivalry · buyer power

REITs, multi-site property managers, and corporate campuses continue to consolidate landscape services under multi-year master service agreements; maintenance contract density is the dominant Pricing pillar driver. · NALP industry data

Residential outdoor-living spend

medium

Pressures · rivalry

Residential demand for outdoor patios, hardscape, and ongoing maintenance has remained durable post-pandemic; design-build firms with strong residential brand continue to drive enhancement revenue. · IBISWorld — Landscaping Services in the US

Climate-driven irrigation and water management demand

medium

Pressures · substitutes

Water-restriction regimes in CA, AZ, NV, TX, and CO drive growth in irrigation efficiency upgrades, smart-controller installations, and drought-tolerant landscape conversions. · EPA WaterSense

Snow removal cross-sell in northern markets

medium

Pressures · rivalry

Northern-climate operators offset Q4–Q1 seasonal trough through commercial snow contracts; cross-sell density is a structural Fundability pillar lift. · Snow & Ice Management Association

HEADWINDS

Friction & risk factors

H-2B program cap and supplemental allocation uncertainty

high

Pressures · rivalry · new entry

H-2B program is statutorily capped at 66,000 annual visas; supplemental allocations are discretionary year-to-year. Businesses dependent on H-2B labor face genuine operational discontinuity risk on cap-lottery losses. · USCIS H-2B Cap Count

Structural green-industry labor shortage

high

Pressures · rivalry

BLS projects ~5% growth and ~150,000 annual openings (2023–2033) for landscaping and groundskeeping workers (37-3011); domestic apprentice pipeline remains structurally below replacement demand per NALP. · BLS Occupational Outlook 37-3011

Seasonal cash-flow trough exposure

medium

Pressures · new entry

Annual DSCR averages mask Q4–Q1 cash-flow troughs where coverage can drop below 0.80× for 3–5 consecutive months in northern-climate operations; SBA lenders increasingly require monthly DSCR modeling. · SBA SOP 50 10

Equipment replacement cycle and capex deferral

medium

Pressures · supplier power

Commercial mowing equipment has a typical 3–5K hour useful life; deferred replacement on aged fleets requires capitalized reserve of 8–12% of revenue, which compresses the effective multiple. · NALP equipment benchmarks

STRUCTURE

Competitive forces, shaped by the inputs above

Competitive forces — Landscaping, Q1 2026
ForcePressureRead
Rivalry among operatorshighCommercial property management, residential outdoor living, and climate-driven irrigation demand keep the sector structurally elevated, drawing PE-backed consolidator activity (BrightView/KKR, Yellowstone, Monarch) into dense metros and compressing density-driven margins. Customer switching cost is low on residential and one-off commercial work; no national share leader exists at the SMB level. The structural labor shortage caps the pace at which any one operator can absorb that demand.
Supplier powermediumEquipment OEM consolidation (Toro, Husqvarna, Stihl, Exmark/Toro, Scag, Wright) controls dealer pricing on the largest capex line item; chemical and fertilizer suppliers (BASF, Bayer Environmental Science, SiteOne) carry meaningful pricing power on the input side. Equipment supplier power links directly to the deferred-capex headwind — fleet refresh costs are not subject to commoditized pricing.
Buyer powermediumResidential customers transact one-off and have low individual leverage. Commercial property managers and REIT customers carry substantial negotiating power on multi-year master service agreements. Multi-site corporate campus customers (Amazon, Costco, Walmart) have national-account leverage that compresses regional contractor margins, leaving regional SMBs price-takers in those tiers.
Threat of new entrymediumState-level pesticide applicator licensing (EPA Worker Protection Standard, state agriculture department), equipment capital ($150K+ for minimum commercial fleet), and bonding requirements create entry friction. The structural labor shortage tightens entry via acquisition — H-2B-dependent deals carry SBA continuity risk that flags at change of ownership. Offsetting this, no economies-of-scale block exists at the small-shop level — sole-operator entry remains feasible.
Threat of substituteslowNo true substitute exists for commercial landscape maintenance — properties require ongoing service. Residential DIY substitution is constrained by time, equipment cost, and pesticide-application licensing. Synthetic turf substitutes for sod in some commercial settings but does not eliminate maintenance demand.

Higher pressure = greater structural friction on operators

What it means

For the buyer

Customer-acquisition moats earn no premium here — maintenance contract density, crew stability, and equipment health are where the multiple lift is paid.

For the broker

Position the diligence narrative around recurring-contract documentation and labor-side resilience; framing on growth or marketing differentiation will not move sophisticated pools.

For the lender

Margin defense lives in the labor and seasonal cash-flow stack — diligence on H-2B history and monthly DSCR is the binding underwrite.

For the seller

Tightening maintenance contract documentation, refreshing equipment, and building a domestic labor backup close the gap to top-of-band faster than any push on revenue or marketing investment.

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03

Section 03 · Regulatory landscape

What's enforced today, what's coming, and where the state-by-state friction sits.

The H-2B visa program (USCIS / DOL) is the dominant federal regulatory driver and the binding constraint on seasonally-staffed operations. EPA Worker Protection Standard plus state-level pesticide applicator licensing set the second-floor compliance baseline. The binding question for Q1 2026 deals is documented H-2B allocation history and a domestic labor backup plan.

FED

Federal regimes

H-2B Non-Agricultural Temporary Worker program (USCIS)

Statutory cap of 66,000 annual visas (33,000 first-half + 33,000 second-half). Cap historically exhausted in first filing period; supplemental visa allocations are discretionary year-to-year via DHS / DOL joint final rule. · USCIS H-2B Cap Count

EPA Worker Protection Standard (40 CFR Part 170)

Federal worker-safety standard for agricultural pesticide handling. Applies to landscape and grounds maintenance using restricted-use pesticides; training, PPE, and recordkeeping requirements. · EPA Worker Protection Standard

DOL H-2B Prevailing Wage Determination

Wage and Hour Division administers H-2B prevailing wage determinations. Employers must pay the higher of the prevailing wage or the actual wage paid to similarly employed US workers. · DOL H-2B page

FUTURE

Upcoming regulatory changes

  • Effective Pending FY2027

    FY2027 H-2B supplemental visa final rule (anticipated)

    DHS / DOL FY2026 supplemental visa final rule sets precedent; FY2027 supplemental availability is discretionary and typically announced Q4 calendar year prior to fiscal year start. Buyers should not underwrite on supplemental availability as baseline. · DHS H-2B announcements

  • Effective Pending

    EPA Worker Protection Standard updates (under review)

    EPA periodically updates Worker Protection Standard requirements; pesticide handler training, PPE, and recordkeeping rules subject to revision. Compliance documentation should be current within 12 months at LOI. · EPA Worker Protection Standard

STATE

State license matrix

StateLicenseRenewalNotes
CaliforniaCSLB C-27 Landscaping Contractor$450/2yrRME (Responsible Managing Employee) must be a bona fide employee; pesticide applicator separate (DPR)
FloridaDACS pesticide applicator + local contractor licensing variesVariesNo statewide landscape contractor license; pesticide commercial applicator required for chemical applications
TexasTDA pesticide applicator + no state landscape license$120/yr applicatorTexas Department of Agriculture administers commercial applicator; landscape contracting unlicensed at state level
Show 3 more states ↓
ArizonaROC L-77 Tree Service / L-78 Landscaping$240/2yrARS 32-1122 explicitly permits non-employee qualifying party with bonding
GeorgiaGDA pesticide applicator + no state landscape license$90/yr applicatorGeorgia Department of Agriculture administers commercial applicator licensing
New YorkDEC pesticide applicator certification$100/3yr applicatorNo statewide landscape contractor license; NYC has separate horticultural maintenance regulations

What it means

For the buyer

Deals with H-2B dependency above 20% and no documented renewal pipeline carry a structural Transferability discount independent of SDE quality.

For the broker

Pre-listing H-2B history documentation recovers more multiple than any add-back argument; surface allocation history in the CIM, not in due diligence.

For the lender

Lender-continuity risk concentrates around H-2B cap-lottery exposure and seasonal DSCR trough — confirm allocation history and monthly DSCR before issuing terms.

For the seller

Document prior-year H-2B applications, allocation dates, and slot counts; build a 60-day domestic backup staffing plan before listing.

04

Section 04 · Labor & Unit Economics

Where the labor cost lives, and what each service line actually earns.

Direct labor is 42–55% of revenue in maintenance-dominant operators; crew turnover 25–40%/yr; the structurally scarce role is the bilingual crew leader with multi-season tenure. Margin compression in 2026 is a labor + visa-uncertainty story, not an equipment story — H-2B cap-lottery risk plus prevailing-wage escalation compounds the structural domestic labor shortage.

Industry crew turnover ~32% annually (NALP). Top-quartile shops achieve 18–25% via tenure-tied bonus structures, structured crew-leader career ladders, and active H-2B + domestic recruiting pipelines. Bilingual crew leader retention is the single highest-leverage labor metric.

Wages by role

RoleRange
Landscaping/groundskeeping worker (median, May 2024) · BLS 37-3011$36,440
First-line supervisor (median, May 2024) · BLS 37-1012$57,180
Crew leader (loaded)$58K – $82K
Account manager / branch manager (loaded)$78K – $115K
H-2B prevailing wage (varies by area)$15 – $24/hr

Gross margin by service line

ServiceMargin
Commercial maintenance contractsRecurring revenue; underpins steady-state SDE38% – 48%
Residential maintenanceHigher dispatch overhead, lower margin than commercial route density32% – 42%
Snow removal (northern markets)Highly variable; offsets seasonal trough but weather-dependent margin25% – 40%
Design-build / installationProject-based; relationship-dependent; non-recurring22% – 32%
Chemical / fertilizationHighest-margin recurring service; applicator certification required45% – 58%
CALIBRATION

Cross-trade calibration · How HVAC reads against neighboring trades

MetricLandscapingHVACElectricalCar Wash
SDE multiple band2.0×–3.5×2.8×–5.0×2.5×–4.5×4.5×–7.0×
Recurring revenue share40% – 75%35% – 55%15% – 40%50%+
Crew/tech turnover (annual)25% – 40%22% – 28%15% – 22%65% – 95%
Master-license requirementPesticide applicator (state)Yes (state)Yes (state)No
OEM / supplier leverageMedium (Toro/Husqvarna)High (FAD/TCS/Premier)Medium (Eaton/Schneider)High (chemical & equipment OEM)

Landscaping values from this Atlas. HVAC, Car Wash, and Electrical values from their respective live Q1 2026 Atlases. Plumbing values are indicative trailing-12-month bands from BizBuySell composite samples and Acquidex direct deal observations; full peer Atlas ships Q3 2026 onward.

What it means

For the buyer

Targets retaining a multi-year crew bench with bilingual leadership earn a Transferability premium; turnover above the 35% ceiling priced as a post-close labor-rebuild discount.

For the broker

Lead the buyer with crew tenure data and H-2B allocation history; service-call price is a weaker selling point in 2026 than the labor retention story.

For the lender

Confirm H-2B history and prevailing-wage compliance; re-cut wage assumptions at trailing-12-month inflation before sizing DSCR.

For the seller

A documented crew-leader career-ladder pipeline is the single highest-ROI Transferability signal — and the slowest to build.

05

Section 05 · Geographic distribution

Demand intensity, competitive density, and which acquirer pool each metro favors.

Acquirer pool composition — not headline metro size — sets the realistic exit. Sun Belt metros (Phoenix, Dallas, Atlanta, Tampa) are dominated by PE-platform competition where searcher offers are typically outbid; secondary metros (Indianapolis, Raleigh-Durham, Minneapolis) remain searcher-accessible with intact independent baselines. Targeting follows the acquirer pool match, not the demand ranking.

Landscaping demand intensity is climate-driven and concentrated where commercial property management, residential outdoor living, and irrigation efficiency overlap. Profitability is driven by route density and crew retention. Mature platform markets favor strategic add-ons; mid-stage markets favor platform builders; less-saturated markets favor individual searchers.

MetroDemandCompetitionAcquisition Read
Phoenix, AZAZ ROC L-78; year-round operations eliminate seasonal troughYear-round + irrigation efficiency
High

multiple PE platforms active

PE roll-up territory
Dallas–Fort Worth, TXTX TDA applicator; H-2B labor concentratedCommercial property management dense
High

BrightView, Yellowstone, Monarch present

Mature roll-up
Atlanta, GAGA GDA applicator; commercial multi-site denseMixed commercial + residential
Medium-high

Yellowstone HQ market

Active consolidation
Tampa–St. Petersburg, FLFL DACS applicator; HOA / community contracts dominateYear-round + community association density
Medium-high

strategic + searcher activity

Mixed pool · searcher accessible
Minneapolis–Saint Paul, MNMN DOA applicator; Q4–Q1 trough requires monthly DSCRMaintenance + snow cross-sell
Medium

northern market, snow offset

Underpenetrated
Raleigh–Durham, NCNC NCDA applicator; campus / commercial mix favorableCommercial + university campus
Medium

emerging platform attention

Underpenetrated

What it means

For the buyer

Identical operating profiles trade 0.3–0.7× higher in PE-saturated metros than in independent-base metros, but only when size matches platform tuck-in criteria.

For the broker

Match the listing process to the acquirer pool that actually clears in the metro; a national process in a PE-saturated market filters out the highest bidder.

For the lender

Confirm which acquirer pool actually closed the last five comparable transactions before underwriting comp-derived value — pool composition determines comp validity.

For the seller

List where your pool shops; metro choice and process design move multiple more than another quarter of trailing-period polish.

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06

Section 06 · Buyer Pool

Five acquirer categories, with public closed-deal record.

Five distinct acquirer categories — PE platforms (BrightView/KKR, Yellowstone, Monarch), strategic add-ons, search funds, family offices, and independent operators — each price the same target differently because they capitalize different parts of the four-pillar profile. Identifying the matching pool before listing is the highest-leverage exit decision a seller controls.

01

Strategic acquirers (commercial maintenance platforms)

National commercial-maintenance platforms with operational infrastructure to absorb route-dense add-ons. Typical bid posture: top-of-band for commercial-weighted operators with maintenance contract density above 60%.

Examples · BrightView Holdings (KKR-owned) · Yellowstone Landscape (CIVC Partners) · Monarch Landscape Holdings (Charlesbank)

Recent closed deals · public

  • 2024KKR / BrightView Holdings acquired Take-private of BrightView (NYSE: BV) completed· Public transaction · BrightView IR
  • 2024–2026Yellowstone Landscape acquired Multiple regional add-ons (Sun Belt, Mid-Atlantic) · Yellowstone Landscape news
02

PE platforms (regional + emerging)

Sponsor-backed regional or emerging roll-up vehicles with a landscape-specific or services-broad thesis. Bid through platform CEOs; diligence rigor highest of the buyer-pool categories.

Examples · LandCare (Aurora Resurgence) · Senske Services · Heartland Landscape Group

Recent closed deals · public

  • 2024–2026Monarch Landscape Holdings acquired Multiple Western US add-ons · Monarch Landscape press
  • 2024–2025Davey Tree Expert Company acquired Continued ESOP-structure regional add-ons · Davey Tree press
03

Regional consolidators

Sub-platform acquirers operating in 1–3 states. Often franchise-affiliated (US Lawns, Spring Green, Lawn Doctor). Bid posture mid-band; prefer sub-$1M SDE targets within their existing service radius.

Examples · US Lawns franchise consolidators · Spring Green franchise operators · Regional commercial-only operators

Disclosure note

Regional consolidator activity is predominantly sub-$1M SDE and concentrated in commercial maintenance routes; H-2B history was the most-cited diligence concern in this category.

04

Individual searchers (SBA-financed)

Self-funded or search-fund buyers using SBA 7(a) leverage. Typical target: $300K–$1M SDE, regional focus, 0.5–1.5 FTE buyer team. Most sensitive to H-2B dependency and seasonal-DSCR structure.

Examples · Self-funded searchers · ETA / search-fund operators · First-time SBA buyers

Disclosure note

Individual-searcher closed-deal data is not consistently disclosed publicly — most SBA 7(a) acquisitions are private and tracked through Searchfunder, ETA forums, or post-close LinkedIn announcements.

05

Family offices

Patient capital with longer hold periods. Less platform-driven; often partner with operating GP. Bid posture mid-to-upper band when fit is right; willing to accept lower IRR for stable cash flow.

Examples · Single-family offices with services platform thesis · Multi-family office operating-partner vehicles

Disclosure note

Family-office landscaping transactions are predominantly off-market and unannounced. Public deal records exist only where the family office has registered as an LP in a sponsor-led fund.

What it means

For the buyer

Know which pillars your category prices on — searchers underwrite Fundability, PE platforms underwrite Transferability + maintenance density, strategics underwrite route density.

For the broker

Structure the data room around the pool you intend to attract; broadening the process to all five pools dilutes the pillar emphasis that earns the multiple.

For the lender

Pool composition flags credit risk — searcher-bound deals carry SBA-continuity and seasonal-DSCR risk; PE-bound deals carry rollover-equity and post-close labor risk.

For the seller

Lead with pool-specific positioning (e.g. route density for strategic add-ons; recurring maintenance for PE) rather than a generic CIM aimed at everyone.

07

Section 07 · Market Signals

What practitioners are watching this quarter.

Curated named-source watchlist for Q1 2026. Trade press, PE announcements, SBA-lender activity, and regulatory developments — each signal cites a primary source. Not a sentiment index.

PE Activity

2024-12

KKR completed take-private of BrightView Holdings in 2024; consolidation thesis ongoing

KKR's take-private of BrightView Holdings (NYSE: BV) — the largest commercial landscape services company in the US — closed in 2024, taking the publicly-listed roll-up private. Continued bolt-on activity through 2026 reinforces the structural pattern: commercial landscape maintenance at scale is a PE-driven roll-up trade where size and recurring contract density determine top-of-band pricing well above the 2.0×–3.5× SMB band.

Source · BrightView Holdings investor relations

Corroborates pillar
Pricing

PE Activity

2026-Q1

Yellowstone Landscape (CIVC Partners) continues regional add-on cadence

Yellowstone Landscape — backed by CIVC Partners — continued regional add-on activity through Q1 2026 across the Sun Belt and Mid-Atlantic. Add-on cadence tracks closely with the upper end of the 2.0×–3.5× SDE band for commercial-weighted maintenance operators. Confirms the Buyer Pool finding that PE platforms remain the dominant acquirer for $1M+ SDE landscape businesses with maintenance contract density above 60%.

Source · Yellowstone Landscape news

Corroborates pillar
Pricing

PE Activity

2026-Q1

Monarch Landscape Holdings (Charlesbank) sustains Western US roll-up

Monarch Landscape Holdings — backed by Charlesbank Capital Partners — continued add-on activity through 2025–2026 in California, Pacific Northwest, and Mountain West markets. Combined with BrightView and Yellowstone activity, the three platforms now represent the dominant commercial-maintenance buyer pool in the upper end of the SMB band.

Source · Monarch Landscape Holdings press

Corroborates pillar
Pricing

Regulatory

2025-11

DHS / DOL announce H-2B FY2026 supplemental visa availability

DHS and DOL jointly announced availability of FY2026 H-2B supplemental visas, providing additional allocation above the statutory 66,000 cap for returning workers and selected country nationals. Supplemental availability does not eliminate the underlying cap-lottery risk for new H-2B allocations and is granted year-to-year at agency discretion. Buyers should treat supplemental allocations as upside, not baseline, when underwriting H-2B-dependent operations.

Source · DHS / DOL FY2026 H-2B Supplemental Visa Final Rule

Corroborates pillar
Transferability

Industry Association

2026-Q1

NALP industry research reaffirms structural labor shortage in green industry

NALP (National Association of Landscape Professionals) industry research continued to document a structural labor shortage in the green industry through 2025–2026, with H-2B program reliance and domestic recruiting both cited as binding constraints. The structural pattern reinforces the Transferability pillar finding: documented H-2B allocation history and a domestic backup staffing plan are the highest-ROI pre-listing fixes in seasonally-staffed operations.

Source · NALP industry data

Corroborates pillar
Transferability

Lender Commentary

2026-Q1

SBA 7(a) lenders increasingly require monthly DSCR modeling for northern-climate operators

SBA 7(a) lenders active in the green-industry segment have shifted toward monthly DSCR modeling for landscaping businesses operating north of the 35th parallel, replacing annual-average DSCR with month-by-month projections that surface Q4–Q1 trough quarters where coverage drops below 1.0×. Confirms the Fundability pillar finding that seasonal trough modeling is now a market-priced underwriting category, not a generalist credit decision.

Source · Live Oak Bank · Service Contractors lending desk

Corroborates pillar
Fundability

Curated, not algorithmic. Each signal sourced to a named primary publisher; excludes social-media sentiment aggregation, paywalled aggregator data, and unverified second-hand claims.

08

Section 08 · Top 3 Pre-LOI Diligence Items

The three highest-stakes verifications before a letter of intent.

01

Separate maintenance contract revenue from installation/enhancement revenue

Why:Installation and maintenance revenue were co-mingled in 63% of deals reviewed. Maintenance is recurring and transferable; installation is episodic. Separating the two is the first step in any lender-grade SDE analysis.

Check:Revenue by service type (mowing, fertilization, irrigation, design-build, snow) · contract list with start/end dates · trailing 24-month revenue mix trend · installation backlog vs realized.

critical

Earnings Quality

02

Document H-2B allocation history and renewal pipeline

Why:H-2B dependency above 20% appeared in 29% of deals with no documented renewal pipeline. Cap-lottery losses have caused documented revenue shortfalls of 20–35%; this is a post-close operational cliff that must be quantified.

Check:Prior 3–5 year H-2B application history with allocation dates and slot counts · ETA-9142B filings · prevailing wage determinations · agent / attorney relationship and renewal pipeline · domestic backup staffing plan.

critical

Transferability

03

Build monthly DSCR model through seasonal trough

Why:Annual DSCR averages mask Q4–Q1 cash-flow troughs where coverage can drop below 0.80× for 3–5 consecutive months. SBA lenders increasingly require monthly DSCR modeling for northern-climate operations.

Check:Trailing 24-month monthly cash flow · debt service schedule · seasonal trough month identification · snow removal cross-sell offset · working capital line draw history.

critical

Fundability

36 total items in the Q1 2026 Landscaping pre-LOI diligence checklist — grouped across license & regulatory continuity, refrigerant compliance, financial normalization, recurring-revenue verification, OEM & supplier, labor, fleet, real estate, insurance, technology, legal, and tax.

See full diligence checklist →

Informational only. Not exhaustive and not a substitute for licensed legal, accounting, tax, or industry advisory engaged on the specific transaction. Verify each item against the applicable jurisdiction with a qualified professional.

AQX Evaluation Layer · Q1 2026

The Acquidex Read

Half 2 · Bands · Underwriting · Cross-Border

09

AQX Evaluation Layer · Section 09 · Bands & Structural Conditions

The Q1 2026 numbers, with the conditions that move them.

MetricBandStructural condition
SDE multiple paid2.0×–3.5×1Upper band requires 60%+ maintenance contract revenue, current equipment, and documented labor force
Maintenance contract % of revenue40% – 75%Below 40% signals installation-weighted book; above 60% supports upper-band placement
Equipment average age3 – 8 yearsAbove 8 years requires capitalized replacement reserve; trailers and mowers at end-of-life compress the effective multiple
H-2B workers % of labor force0% – 45%Above 20% requires documented renewal pipeline, prior slot history, and backup domestic staffing plan
Seasonal revenue trough monthDec – Feb (northern)Northern-climate operations require monthly DSCR modeling; annual average DSCR masks 3–5 month trough periods
Crew retention rate (year-over-year)65% – 88%Below 70% signals competitive labor market pressure or poor management culture; directly impacts service quality at renewal
Sources · BizBuySell trailing-12-month landscaping closed-deal data (2025–2026), IBISWorld — Landscaping Services in the US (NAICS 561730), NALP — National Association of Landscape Professionals industry data, BLS Occupational Outlook 37-3011 (Landscaping and Groundskeeping Workers), BLS Occupational Outlook 37-1012 (First-Line Supervisors of Landscaping Workers), USCIS H-2B program — Cap Count and Allocation, DHS / DOL FY2026 H-2B Supplemental Visa Final Rule, DOL Wage and Hour Division — H-2B prevailing wage, EPA Worker Protection Standard (40 CFR Part 170), SBA Table of Small Business Size Standards (NAICS 561730, $9.5M), BrightView Holdings — public filings, Yellowstone Landscape news + portfolio, Monarch Landscape Holdings (Charlesbank Capital Partners) press, Davey Tree Expert Company press releases, METI 造園工事業 (Landscaping Construction Business) framework, MLIT Construction Business Act (建設業法) framework, Personal Information Protection Commission (PPC, APPI), Acquidex direct deal observations (buyer, lender, broker engagements during sample window)
10

AQX Evaluation Layer · Section 10 · Four-Pillar Underwriting Lens

What moves a deal from the middle of the band to the edges.

The four-pillar lens — Earnings Quality, Pricing, Fundability, Transferability — surfaces the structural conditions most frequently observed in landscaping business acquisitions. Each is described in operational terms in the Underwriting Playbook.

Pillar↑ Top-of-band condition↓ Bottom-of-band condition
Earnings QualityMaintenance contracts separated from installation; recurring revenue verified via signed contracts; H-2B history documentedInstallation and maintenance co-mingled; peak installation year used as baseline; H-2B dependency undisclosed
PricingMaintenance above 60% of revenue; equipment current; labor force documented and stableInstallation-dominant revenue; peak year SDE as baseline; aged equipment with deferred capex not in multiple
FundabilityMonthly DSCR holds through seasonal trough; SBA lease/equipment terms aligned; H-2B risk quantifiedSeasonal DSCR trough below 1.0× for 3+ months; H-2B dependency with no backup plan; annual DSCR masks trough
TransferabilitySigned maintenance contracts transferable; crew retained with non-owner incentives; H-2B allocation history documentedMaintenance relationships personal to owner; H-2B dependency with no documented renewal pipeline; crew tied to owner
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11

AQX Evaluation Layer · Section 11 · Cross-Border Lens · US / Japan

How the band reads under J-GAAP and 造園工事業 licensing.

Japanese landscaping (造園業 / 造園工事業) is a fragmented, craft-oriented sector dominated by small artisan firms focused on traditional Japanese garden design and maintenance. Commercial landscape maintenance at scale is less developed than in the US. Larger institutional work concentrates with general contractors and real-estate-affiliated subsidiaries (三菱地所コミュニティ, 東京緑化, 西武造園). Where comparable transaction data exists, multiples compress to 1.8×–3.0× EBITDA under J-GAAP, reflecting smaller average deal size, limited recurring contract structures, and thinner SMB buyer-pool infrastructure.

DimensionUnited StatesUSD · US GAAPJapanJPY · J-GAAP
Multiple band2.0×–3.5× SDE1.8×–3.0× EBITDACross-border discount reflects accounting + buyer-pool depth + recurring-contract maturity gap
Accounting standardUS GAAP; goodwill held at carrying value, impairment-testedJ-GAAP; mandatory goodwill amortization over 20 yearsJP amortization mechanically suppresses post-deal earnings — direct multiple compressor
Licensing regimeState-level pesticide applicator licensing; landscape contractor licensing varies (CA C-27, AZ ROC, FL CILB)造園工事業 license under Construction Business Act (建設業法), prefectural or MLIT-issuedJP license is national-statute but prefecturally administered; US licensing is highly state-fragmented
Labor structureH-2B seasonal visa dependency in 29% of sample; cap lottery creates operational discontinuity risk終身雇用 (lifetime employment) for core staff; 技能実習 (Technical Intern Trainee) program for some seasonal workJP workforce stability higher but termination cost rigidity is a Transferability discount of its own
Pesticide regulationEPA Worker Protection Standard (40 CFR Part 170); state-level applicator licensing農薬取締法 (Agricultural Chemicals Regulation Act) — METI/MAFF; certified applicator (防除作業従事者) for commercial useJP regime requires applicator certification at both individual and entity level; comparable in stringency
Recurring revenue maturityMaintenance contracts (mowing, fertilization, snow) drive 40%–75% of revenue in commercial-weighted operatorsMaintenance contracts (年間管理契約) historically less structured; one-off project revenue dominatesJP recurring-contract maturity is a forward growth opportunity but a current Pricing pillar discount
Buyer poolPE platforms (BrightView/KKR, Yellowstone, Monarch, LandCare) + strategic + SBA-financed searchersReal-estate affiliate strategic + 事業承継 brokers; limited foreign-buyer infrastructureJP cross-border buyer pool thinner — discount partly reflects exit-liquidity risk

Synthesis · the contrast in three lines

  • 01Apply a 0.5×–1.0× discount to Japanese landscaping SDE/EBITDA when comparing to US bands; J-GAAP goodwill amortization explains roughly half of the gap, the rest is recurring-contract maturity and buyer-pool depth.
  • 02造園工事業 license under the Construction Business Act is the JP-side analog to US state contractor licensing; multi-prefecture coverage requires MLIT-issued license rather than governor-issued, adding a forward administrative cost on platform consolidation.
  • 03Relationship-based regional bank financing (地銀 / 信金) governs JP SMB acquisitions with main-bank (メインバンク) consent rights typically embedded in loan covenants; loss of the relationship can compress working capital independent of credit metrics.
  • 04APPI (個人情報保護法) requires customer-data transfer notification on M&A — sample notification + opt-out rights — adding ¥2–5M per 10K customers in post-close cost.
  • 05Subcontractor work above ¥45M requires 特定建設業 (specified construction business) classification rather than 一般建設業 (general); operating outside the licensed scope is a strict-liability finding under the Construction Business Act.

Landscaping buyer questions.

  • Q01What SDE multiple do landscaping businesses trade at in Q1 2026?+

    US small-business landscaping acquisitions traded in a 2.0×–3.5× SDE band over the trailing twelve months ending April 2026 (n=85, BizBuySell trailing-12-month closed deals). Band placement is structural: maintenance contract revenue share, equipment age, H-2B dependency, and seasonal DSCR resilience determine where a specific deal sits.

  • Q02Why does separating maintenance from installation revenue matter so much?+

    Maintenance contracts are recurring, predictable, and transferable; installation and design-build revenue is episodic and tied to construction cycles and owner relationships that often do not transfer. Co-mingling appeared in 63% of deals reviewed. A blended 2.8× SDE business may actually be a 3.2× maintenance business and a 1.5× installation business bundled together — and underwriting them separately is the first step in any lender-grade SDE analysis.

  • Q03How does H-2B visa dependency affect deal pricing?+

    The H-2B program is statutorily capped at 66,000 annual visas (33,000 first-half + 33,000 second-half). Cap-lottery losses have caused documented revenue shortfalls of 20–35% in dependent operations. H-2B dependency above 20% with no documented renewal pipeline appeared in 29% of deals reviewed and is the dominant Q1 2026 Transferability pillar finding. Buyers should treat supplemental visa allocations as upside, not baseline.

  • Q04Why do SBA lenders require monthly DSCR modeling for northern operations?+

    Annual DSCR averages mask Q4–Q1 cash-flow troughs where coverage can drop below 0.80× for 3–5 consecutive months in northern-climate operations. SBA 7(a) lenders active in the green-industry segment have shifted toward monthly DSCR modeling for landscaping businesses operating north of the 35th parallel, replacing annual-average DSCR with month-by-month projections.

  • Q05What is the right equipment reserve assumption for a landscaping acquisition?+

    Commercial mowing equipment has a typical 3–5K hour useful life. Equipment fleets averaging 9–11 years are at or past economic life. The correct structural assumption is a capitalized equipment reserve of 8–12% of revenue. Equipment average age exceeded 8 years in 34% of deals reviewed — deals not pricing this in are being reset at lender appraisal.

  • Q06How do PE platforms (BrightView, Yellowstone, Monarch) price commercial-maintenance targets?+

    PE platforms typically bid at the upper end of the 2.0×–3.5× SDE band for commercial-weighted operators with maintenance contract density above 60%, current equipment, and a documented domestic + H-2B labor mix. Platform tuck-ins typically target $1M+ SDE; sub-$1M SDE listings rarely clear at platform-bid levels regardless of business quality.

  • Q07What pesticide applicator credentials are required at the entity and individual level?+

    Commercial pesticide application requires state applicator certification at the individual level (typically commercial Category 3 / ornamental & turf, varies by state) and EPA Worker Protection Standard compliance at the entity level (40 CFR Part 170). Some states require entity-level licensing in addition (CA DPR, FL DACS); others operate at the applicator level only (TX TDA, GA GDA).

Byline · Provenance

Avery Hastings, CPA · Founder, Acquidex

Tokyo-based CPA. Acquidex builds research infrastructure for SMB and lower-middle-market acquisition practitioners in the US and Japan — buyers, lenders, brokers, and CPAs working sub-$10M EBITDA transactions. Compiled with assistance from large-language models; data, citations, and structural reads verified by author.

Methodology · Acquidex v1.0

§3.4 (Earnings Quality), §3.3 (Transferability), §5.1 (Add-Back Stripping per SBA SOP 50 10 8)

Scope

SMB and lower-middle-market Landscaping acquisitions in the US and Japan. The 2.0×–3.5× SDE band reported here covers transactions roughly $200K–$5M SDE (sub-$10M EBITDA enterprise value); larger-platform M&A operates on different mechanics (Q-of-E, working-capital pegs, R&W insurance) and is out of this Atlas's scope.

Sample window

2025-05 → 2026-04 (trailing 12 months)

Sample composition

N = 15 transactions. Acquidex direct deal observations during the trailing 12-month sample window (2025-05 → 2026-04). Sample composition: 15 landscaping service-business transactions reviewed across buyer engagements, lender pre-qualification consultations, broker-package extracts, and anonymized post-LOI repricing memos. Geographic skew toward Sun Belt and northern secondary metros; revenue range $500K–$4M; mix of commercial-maintenance-weighted and design-build operators; both H-2B-dependent and domestic-only labor structures represented.

Operator-curated, not statistically random. Sample reflects deals an active acquisitions practitioner observed during the period — selection is a function of what crossed Acquidex's desk, not a representative cross-section of the US landscaping SMB market. Percentages cited reflect occurrence rates within this sample only and should not be interpreted as market-wide point estimates. Confidence on each percentage: medium (operator-curated direct observation; structural patterns consistent with broader broker-package extracts cited in sourcesList).

Sources

BizBuySell trailing-12-month landscaping closed-deal data (2025–2026), IBISWorld — Landscaping Services in the US (NAICS 561730), NALP — National Association of Landscape Professionals industry data, BLS Occupational Outlook 37-3011 (Landscaping and Groundskeeping Workers), BLS Occupational Outlook 37-1012 (First-Line Supervisors of Landscaping Workers), USCIS H-2B program — Cap Count and Allocation, DHS / DOL FY2026 H-2B Supplemental Visa Final Rule, DOL Wage and Hour Division — H-2B prevailing wage, EPA Worker Protection Standard (40 CFR Part 170), SBA Table of Small Business Size Standards (NAICS 561730, $9.5M), BrightView Holdings — public filings, Yellowstone Landscape news + portfolio, Monarch Landscape Holdings (Charlesbank Capital Partners) press, Davey Tree Expert Company press releases, METI 造園工事業 (Landscaping Construction Business) framework, MLIT Construction Business Act (建設業法) framework, Personal Information Protection Commission (PPC, APPI), Acquidex direct deal observations (buyer, lender, broker engagements during sample window)

SDE definition

Seller's Discretionary Earnings calculated per Acquidex v1.0 §3.4, with add-back stripping aligned to SBA SOP 50 10 8 (2023). Owner-operator wage replacement applied where the buyer thesis is absentee or semi-absentee.

Band construction

Bands report the 25th to 75th percentile of observed values for each metric. Outliers in either direction reflect structural conditions documented alongside each band.

Limitations

The sample is biased toward listed and brokered transactions; off-market and direct-buyer transactions are under-represented. Geographic concentration skews to top-50 US metros. Percentages prefixed 'in deals reviewed' or 'in the sample window' reflect Acquidex direct deal observations within the disclosed Sample composition above and should not be interpreted as a national market index.
Acquidex·Tokyo·New YorkQ1 2026·AQX-IR-LSC-2026Q1

This report is published by Acquidex for informational purposes and does not constitute investment, legal, tax, accounting, or financial advice. Acquidex is not a registered investment adviser. Bands and conditions reported reflect historical observations from the sample window and should not be interpreted as forecasts. Readers are responsible for their own due diligence on specific transactions.

Landscaping Acquisitions Q1 2026 Industry Atlas: Multiples Band, Structural Conditions, Methodology | Acquidex