Selling a Lawn Care Business in Florida
A Guide for Florida Business Owners by Patrick Archer, MBA, CBI, CM&AP | Florida M&A Advisor | Calder Associates of Florida | 305.763.4112 (Mobile) 407.499.2855 (Office)
Selling a Lawn Care Business in Florida
Selling a Lawn Care Business in Florida is an important decision for owners of these essential business in the Sunshine State. Owners contemplating selling a Florida lawn care business must weigh the pros and cons of selling the business. Retirement is the primary motivating factor for most owners, while other owners may be planning to pursue new ventures in different industries.
Regardless of the motivations, sellers of lawn care businesses in Florida will want to package and price the business to stand apart from competing listings and attract potential buyers. Many of these individual and institutional buyers are looking to take ownership of a successful lawn care business in Florida and tap into the positive demographics, population growth, median household income and other trends benefitting Florida small business owners today.
Timing Considerations when Selling a Lawn Care Business in Florida
If you are the owner of a successful lawn care business in Florida, now could be a great time to take advantage of these trends and the rising demand among U.S. and international buyers for great businesses for sale in Florida that are established, profitable, “essential” in the eyes of local governments, and resistant to external pressures like recessions and online retailers.
Selling a Lawn Care Business in Florida today can also help sellers command top dollar considering the supply and demand imbalance of available lawn and landscaping businesses in Florida post-Covid-19. While the pandemic wiped out thousands of small Florida businesses in sectors like restaurants, gyms and beauty salons, Florida lawn care business barely blinked and emerged stronger and more attractive in the eyes of their owners, their customers, and potential buyers.
The Lawn Care Industry in Florida
The landscaping services industry in the United States is a $100+ billion industry, and Florida is one of the states with strong year-round demand for lawn care, landscaping, tree trimming/removal, sod installation and other services from both residential and commercial clients statewide.
“The grass is always greener (and growing) in the Sunshine State”
Lots of sunshine and plenty of rain means the grass is always greener (and always growing) in Florida. Florida residents and businesses spend over $3.8 billion annually on lawn and landscaping services, with spending evenly divided 50/50 between homeowners and corporate clients.
“Florida residents spend $3.8 billion annually on lawn and landscaping services”
Buying a lawn care business in Florida can be an attractive turnkey opportunity to enter a market with an experienced team of workers in place and an established roster of clients like large residential developments and condominium associations with dozens or hundreds of dues-paying members. The fact that many front-line workers in the Florida landscape industry are native Spanish speakers can also be another advantage for a South American investor who enters this industry by acquiring an existing business.
Skills needed to Operate a Lawn Care Business in Florida
As in all states, the lawn care sector in Florida is highly competitive, and owners of the most successful lawn care businesses have many years of experience and hundreds of satisfied customers who depend on these companies for weekly lawn care, landscaping, tree trimming/removal, sod installation and other services.
Current owners thinking of selling a lawn care business in Florida will want to know that potential buyers of the business have the operational knowledge, managerial skills and financial resources necessary to manage and grow the business for the next generation.
Most buyers of lawn care businesses in Florida will pursue SBA financing, and most SBA lenders will want to see that the buyer has some knowledge or experience in a residential lawn care, tree service or commercial landscaping business.
“Florida lawn care companies serve both residential and commercial clients.”
Ideally, a future owner of a lawn care business in Florida would already have several years experience as an employee or owner/operator of a lawn care business in their home state or home country.
Many owners of established lawn care businesses in Florida will only consider selling their business to a buyer who has a proven track record of experience in the lawn care industry or a related industry, either as an employee or an owner/operator of the business. Most SBA lenders will view potential buyers through the same lens of relevant lawn care experience and qualifications.
Best Cities For Selling a Lawn Care Business in Florida
For potential buyers open to living anywhere in the Sunshine State, sellers of lawn care businesses in Florida will be competing with other owners of similar business statewide. These buyers will be weighing several factors including a variety of demographic and quality of life metrics that will impact both their decision making process.
Florida’s population of 23 million is spread throughout the state’s 67 counties, but the largest clusters of high net worth households paying top dollar for lawn care and landscape services are concentrated in the southern half of the state along a ring of 14 coastal counties on the Atlantic Ocean and the Gulf of Mexico. This “golden horseshoe” of Florida demographics encompasses the 25 Wealthiest Zip Codes in Florida based on Average Gross Income.
“This 14-county coastal region is the Golden Horseshoe of Florida demographics.”
This 14-county coastal region extends from Tampa/St.Petersburg on the Gulf side, south to Naples/FortMyers and down to the Florida Keys, east to Miami/Fort Lauderdale and extends north through the coastal communities of Pompano Beach, Boca Raton, Palm Beach, Jupiter, Stuart, Hobe Sound, Port Saint Lucie, Vero Beach and Melbourne. Some of Florida’s largest and most profitable lawn care, tree service and commercial landscaping companies are located in this 14-county coastal region.
And, of course, no conversation about desirable areas to live and own a business in Florida would be complete without mentioning the Orlando metropolitan area. “The City Beautiful” is one of the fastest-growing metros in the country, and the influx of new residents creates ample opportunities for new and existing business owners.
“With over 2 million residents, Orlando’s economy is booming and increasingly diverse”
Long known as a tourism mecca and home to theme park giants like Disney and Universal, Orlando’s economy is increasingly diverse. And world class infrastructure improvements like the new $3 billion Terminal C at Orlando International Airport facilitate domestic and international arrivals and intrastate travel with the addition of Brightline, a high-speed rail link between Orlando and South Florida metros like Miami, Fort Lauderdale and West Palm Beach.
Median Asking Price of Lawn Care Businesses For Sale in Florida
Once you have decided on selling a lawn care business in Florida, it’s a good idea to work with a licensed Florida business broker to get a better understanding of the current value of your business and a most probable selling price to qualified buyers looking to buy your Florida lawn care business with some combination of cash and financing, either through an SBA loan, seller financing, a bank loan, a leveraged buyout, assumption of debt, or some other mutual buyer/seller arrangement.
According to the Florida database of businesses for sale, the median asking price for lawn care business for sale in Florida is $450,000 for existing businesses generating over $250,000 in annual revenue and over $100,000 in annual cash flow.
“The median asking price of Florida lawn care businesses for sale is $450,000”
The range of asking prices for Florida lawn care and landscaping businessses for sale extends from $230,000 on the low end to $2,600,000 on the high end for Florida lawn care businesses generating over $250,000 in annual revenue and over $100,000 in annual cash flow.
Median Annual Revenue of Lawn Care Businesses For Sale in Florida
With the right team of talented employees, good equipment, and an established, repeat customer base, lawn care companies in Florida can be great revenue generators for both current and future owners. According to the statewide database of businesses for sale in Florida, the median annual revenue for a lawn care business in Florida is $594,000.
“The median annual revenue of Florida lawn care businesses for sale is $594,000”
The range of annual revenue for Florida lawn care companies extends from $269,000 on the low end to $2,920,000 on the high end for Florida lawn care businesses generating over $250,000 in annual revenue and over $100,000 in annual cash flow.
Median Cash Flow of Lawn Care Businesses For Sale in Florida
Established and well managed lawn care and landscaping businesses in Florida can produce significant cash flow benefitting both the current owner and future owners of these businesses.
“The median annual cash flow of Florida lawn care businesses for sale is $180,000”
According to the official database of businesses for sale in Florida, the median cash flow for a lawn care and landscaping business in Florida is $457,000. As such, lawn care businesses for sale in Florida enjoy a median cash flow of 30% of annual revenues. ($180,000 / $594,000 = 30%)
The range of annual cash flow for lawn care and landscaping businesses for sale in Florida extends from $120,000 on the low end to $460,000 on the high end for Florida lawn care businesses generating over $250,000 in annual revenue and $100,000 in annual cash flow.
“The median payback period for a Florida lawn care business is 2.5 years.”
Based on these same numbers, the ratio of median cash flow to asking price for existing Florida lawn care businesses for sale is 40% ($180,000 / $450,000) which translates into a median payback period of 2.5 years.
Additional Resources for Selling a Lawn Care Business in Florida
Selling a Lawn Care Business in Florida is a major life decision that requires serious due diligence and sound guidance from experienced and trusted M&A advisors.
If you own a Florida lawn care business with annual sales greater than $1 million and would like to schedule an initial consultation regarding your Florida residential lawn care, tree service or commercial landscaping business, current valuation and next steps, please call us today at 305.763.4112, schedule a free consultation, or use the contact form below.