Home ServicesBusiness Valuation
Valuation BenchmarksMay 2025 · 5 min read

Landscaping Business Valuation in Iowa: Des Moines Market Data 2025

Iowa landscaping businesses benefit from Des Moines's strong commercial market, a 6-month growing season supplemented by snow removal, and Iowa's flat 3.8% income tax rate — one of the lowest in the Midwest.

JT

Jason Taken

HedgeStone Business Advisors

Iowa has undergone a dramatic tax reform — from one of the most punishing state income tax structures in the Midwest (top rate above 8%) to a flat 3.8% rate effective 2025. This makes Iowa one of the most seller-friendly Midwestern states for business exits. Des Moines has grown into a regional financial and insurance hub, with strong corporate landscape management demand from companies like Principal Financial, Wells Fargo's Iowa operations, and Nationwide Insurance.

Iowa Landscaping Multiples

Iowa landscaping businesses sell for 2.5x–4.0x SDE. Des Moines metro (Polk County and suburbs in Dallas and Warren Counties) commands the strongest multiples — corporate campus landscape management, commercial property management portfolios, and rapidly developing residential suburbs in Urbandale, Johnston, Ankeny, and Waukee. Iowa City (Johnson County) is a University of Iowa market with institutional landscape accounts. Cedar Rapids is a solid secondary market with large commercial and industrial property management demand from Quaker Oats (General Mills), Collins Aerospace, and hospital systems.

Commercial Landscape Accounts

Iowa's corporate landscape market punches above its weight — Des Moines has one of the highest concentrations of insurance and financial services companies per capita in the country. Principal Financial Group's campus, Wells Fargo's Midwest operations center, and EMC Insurance require professional commercial landscape management with seasonal color programs, irrigation management, and year-round property maintenance. These large commercial accounts carry multi-year contracts with dependable renewal rates. Landscaping businesses with commercial contract portfolios representing 40%+ of revenue command SDE multiples 0.5x–1.0x above primarily residential businesses.

Snow Removal Revenue

Iowa's winters are significant — Des Moines averages 34 inches of snow per year, and commercial property managers require dependable snow and ice removal services. Snow removal with the same equipment used for summer landscaping improves year-round equipment utilization and adds 20–40% to annual revenue during November–March. Landscaping businesses in Des Moines with established commercial snow removal contracts (retail centers, office parks, hospital campuses) can justify higher multiples based on full-year operations. Buyers view combined summer landscaping and winter snow removal as more defensible than single-season businesses.

Iowa's Tax Reform Advantage

Iowa's dramatic tax reform — moving from a top rate above 8% to a flat 3.8% effective 2025 (continuing toward further reductions) — is one of the most significant seller tax improvements of any state in recent years. On a $1.5M landscaping exit, Iowa sellers now pay $57,000 in state income taxes versus over $127,000 at the old top rate. Total effective rate is approximately 26–28% — below Indiana (3.05% base but local taxes add 0.5–2%), below Michigan (4.25%), and dramatically below former Iowa rates. Iowa landscaping owners approaching exit have a meaningful window to benefit from the reformed rate before any future policy changes.

Frequently Asked Questions

Related Articles

See What Your Business Is Worth

Free Consultation →
📞 (224) 249-3213✉️ jason.taken@hedgestone.com

No contact forms. No obligation. Direct access to Jason Taken, Business Broker.