Valuation BenchmarksApril 2025 · 5 min read

Landscaping Business Valuation in Ohio: Columbus & Cleveland Market Data 2025

Ohio landscaping businesses operate in a 7-month season but benefit from Columbus's rapid growth, strong commercial maintenance demand, and Ohio's 3.99% income tax rate.

JT

Jason Taken

HedgeStone Business Advisors

Ohio landscaping is a seasonal business — the growing season runs approximately April through October, leaving a 4–5 month winter gap. Understanding how to build value despite this seasonality, and what Ohio buyers specifically want, is essential for sellers maximizing their exit.

Ohio Landscaping Multiples

Ohio landscaping businesses sell for 1.8x–3.5x SDE — at the lower end of national ranges, reflecting the shortened season and primarily individual-buyer market. Columbus is the strongest Ohio landscaping market (fastest-growing major Ohio city, strong suburban expansion in Dublin, Westerville, New Albany, Hilliard). Cleveland/Akron is solid with strong commercial landscaping demand from corporate headquarters (Progressive, Sherwin-Williams, KeyBank). Cincinnati (affluent northern suburbs: Mason, Montgomery, Hyde Park) supports strong residential landscaping pricing.

Commercial Landscaping: Ohio's Value Driver

Ohio commercial landscaping with multi-year maintenance contracts (corporate campuses, hospital systems, HOA communities) is the highest-value segment. Columbus has significant commercial landscaping demand from the corporate park development along I-270 and the Dublin/Polaris corridor. Cleveland's corporate headquarters and the medical corridor (University Hospitals, Cleveland Clinic system) require ongoing commercial maintenance. Commercial contracts provide the revenue predictability that commands premium multiples in a seasonal business.

Snow Removal: Reducing Ohio Seasonality

Ohio landscaping businesses with commercial snow removal contracts meaningfully reduce seasonality and increase buyer appeal. Snow removal (salt application, plowing) for parking lots, corporate campuses, and HOA communities provides winter revenue on a contract basis. Buyers pay attention to the ratio of annual revenue that is year-round versus summer-only — higher year-round revenue ratios command higher multiples. Snow removal capability is one of the most important value-adding services for Ohio landscaping sellers.

Ohio Tax Environment

Ohio has a 3.99% income tax rate (top bracket, reduced from 4.797% in recent years). Capital gains are taxed as ordinary income at this rate. Ohio sellers pay approximately 27-28% total effective rate — one of the most favorable in the Midwest (Indiana: 3.05%, but Ohio's rate has been declining). Asset purchase agreement structure should address the equipment allocation (depreciation recapture) vs. goodwill (capital gains rate) to optimize the seller's tax position.

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