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Read Article →Exit PlanningApril 2025 · 8 min read
How to Prepare Your Landscaping Business for Sale: 18-Month Action Plan
The 18-month preparation plan that adds 0.5x–1.5x to your landscaping business multiple before you go to market.
JT
Jason Taken
HedgeStone Business Advisors
Landscaping business owners who prepare 18 months before going to market consistently achieve 20–40% higher sale prices than those who decide to sell in 60 days. Here's the specific action plan — month by month — for maximizing your landscaping business value.
Months 1–3: Baseline and Financial Preparation
Get a baseline valuation from a broker (free). Engage an M&A-experienced CPA to prepare 3 years of recast P&L statements with documented add-backs. Implement accrual-basis accounting if you're on cash basis. Reconcile your books to your tax returns. Identify any financial issues (personal expenses, misclassified employees, unreported income) and begin addressing them. Start using LMN or similar landscaping software if you aren't already.
Months 3–9: Build Maintenance Contract Base
This is your highest-ROI exit preparation window. Goals: (1) Convert all mowing customers to annual maintenance agreements (include spring cleanup, mowing, fall cleanup in one annual contract). (2) Add fertilization and weed control programs to existing customers. (3) Price commercial maintenance bids — pursue 5–10 HOA or commercial contracts with multi-year terms. Document everything in your software: contract date, renewal date, annual value. Track your monthly recurring revenue by source.
Months 6–12: Build Your Management Team
Hire or develop a field supervisor (manages crew foremen, customer issues, new job site visits without you). Develop your office coordinator (scheduling, invoicing, customer communication). Document your route supervisor and crew foreman training processes. Start removing yourself from field visits — let the supervisor handle them. Goal: owner at 20 hours/week by month 12, mostly in sales and relationships rather than operations.
Months 9–15: Equipment and Operations Audit
Buyers will assess your equipment. Get all vehicles serviced, documented, and titled correctly. Retire any equipment that's unreliable or requires replacement soon — buyers discount for deferred capex. Verify all licenses: pesticide applicator, contractor's license (if applicable), DOT compliance for commercial vehicles. Resolve any outstanding employment compliance issues (W-2 vs. 1099, I-9 documentation).
Months 15–18: Sale Preparation and Marketing
Engage your broker 15–18 months out for a pre-market assessment. Begin accumulating due diligence documents in an organized virtual data room. Run the business at peak performance — buyers will scrutinize the trailing 12 months. Do not reduce marketing spend or staff during this period. Your most recent 12 months of performance is the most heavily weighted period in buyer analysis.
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