How Maintenance Contracts Increase Your Business Sale Price
Every $1 of recurring maintenance revenue is worth $1.50–$2.00 more than project revenue at sale. Here's the math — and how to convert your customers.
Read Article →Valuation BenchmarksApril 2025 · 5 min read
Landscaping Business Valuation in Illinois: Chicago Market Data 2025
Illinois landscaping businesses face seasonal revenue patterns but strong commercial accounts and Chicago metro buyer demand drive solid exit multiples.
JT
Jason Taken
HedgeStone Business Advisors
Illinois landscaping businesses operate in a demanding seasonal market — lawn season runs approximately April through November in most of the state. But Chicago metro landscaping companies with strong commercial maintenance accounts, snow removal programs, and landscaping installation capabilities have built valuable, multi-season businesses that attract quality buyers.
Illinois Landscaping Sale Multiples
Illinois landscaping businesses sell for 2.0x–3.5x SDE — slightly below the national high end due to seasonal revenue risk. Premium businesses that have addressed seasonality through snow removal contracts, commercial maintenance accounts that pay year-round, and holiday lighting programs trade at 3.0x–3.5x. Purely seasonal residential mowing operations trade at 2.0x–2.5x.
Snow Removal: The Seasonality Solver
Illinois landscaping businesses that have built a significant snow removal book are substantially more valuable than those without. Snow removal revenue fills the November–March gap, converts seasonal employees to year-round, and creates a reliable second revenue stream that PE buyers value. A landscaping business with 12 months of revenue (landscaping April–November, snow December–March) is worth materially more than a 8-month seasonal business.
Commercial Accounts: The Illinois Premium Driver
Commercial maintenance accounts — apartment complexes, office parks, HOAs, retail centers, municipalities — in the Chicago metro are particularly valuable because they provide predictable, contract-based revenue that continues year-round (or close to it). A Chicago-area landscaping company with 60%+ commercial maintenance revenue can command multiples at the high end of the Illinois range and attract PE interest from platforms building Midwest coverage.
Illinois Tax Considerations
Illinois has a flat 4.95% income tax rate. Combined with federal capital gains, Illinois sellers pay approximately 29% effective rate on long-term gains. This is workable, though Illinois has some of the highest property tax rates in the nation — sellers should factor in the ongoing cost of remaining in Illinois when evaluating timing.
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