Tree care business, owner is sole ISA arborist, partial storm-year in trailing period, fleet at mid-life
§ 01 · Observed
What was documented in diligence.
ISA certification: owner only; no other staff ISA certified. Municipal bid contracts require ISA arborist on file — 3 contracts (22% of commercial revenue) are at risk if owner exits without a certified replacement. Storm revenue: trailing 12-month includes an August wind event — $160,000 above 3-year average normalized out of SDE. Fleet: crane truck 8 years, bucket truck 5 years, 2 chippers 6 and 7 years — appraised at 71% of book; replacement cycle estimated within 3 years for crane. EMR 1.04 — borderline; insurer confirmed rates would step up approximately 18% under new entity.
§ 02 · Outcome
What happened.
Initial ask 2.7× storm-year SDE. After storm normalization, ISA continuity discount, fleet capex reserve, and insurance cost step-up normalization, adjusted SDE declined 28%. Repriced to 2.1× adjusted SDE with ISA hire contingency in seller note structure.
§ 03 · Structural Pattern
How this deal fits the four-pillar framework.
Mid-band placement after four concurrent adjustments: storm normalization, arborist continuity risk discount, fleet capex reserve, and insurance rate step-up. No single adjustment was disqualifying but combined they repriced the deal materially — consistent with mid-band tree care patterns.
This is an anonymized composite drawn from observable structural patterns in the sample window. It is not a specific deal. The structural pattern, band placement, and outcome reflect commonly observed combinations; a future consented case study will replace this entry.
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