Specialty Commercial Landscaping and Snow Removal Company
This case study explores the acquisition strategy for a full-service commercial landscaping and snow removal business serving homeowners associations (HOAs), municipal clients, corporate campuses, and multi-family property managers. Operating for over 18 years, the company generates revenue year-round through a carefully balanced mix of seasonal lawncare and wintertime snow management. The business has built strong client relationships through consistent performance, compliance with property management regulations, and a reliable dispatch system during snow emergencies.
The company generates $4.75 million in annual revenue with $905,000 in adjusted EBITDA. Over 85% of revenue is derived from multi-year service agreements with automatic renewal provisions. The revenue mix includes grounds maintenance, seasonal enhancements (mulching, plantings), irrigation system repairs, snow plowing, salting, and sidewalk clearing. The company owns a fleet of vehicles and equipment with an FMV of approximately $1.2 million and operates from a 3-acre yard and office that is leased at below-market rates.
This is an excellent SBA 7(a) target due to its contracted, recurring revenue base, diversified customer mix, and asset-backed operations. Buyers must be prepared to handle seasonal labor ramping, equipment scheduling, and municipal compliance. Post-close growth opportunities lie in route densification, upselling enhancement projects, and rolling out a bundled pricing model across HOA portfolios.
Proposed SBA 7(a) Deal Structure
Given the asset profile, customer stickiness, and EBITDA, a standard SBA structure would be as follows:
Purchase Price: $3.65 million (4.03x EBITDA)
SBA Loan: $2.737 million (75%)
Buyer Equity Injection: $365,000 (10%)
Seller Financing (Subordinated): $547,500 (15%), 5-year amortization with 12-month interest-only
Seller financing to include performance-based reductions and bonuses:
25% clawback on seller note if more than 20% of snow removal contracts cancel within 6 months
Bonus if buyer renews or extends all HOA agreements for an additional 3-year term
Reduction in note obligation if more than 3 foremen quit within the first 90 days
Seller to remain on a 6–9 month consulting agreement focused on crew structure, HOA board introductions, and city permit coordination.
Client Base and Contract Structure
Client breakdown:
HOAs and multi-family property managers: 60%
Municipal clients and parks departments: 20%
Corporate office campuses and business parks: 15%
Retail plazas and medical buildings: 5%
Key contract characteristics:
1–3 year rolling contracts with automatic renewal unless canceled in writing
Fixed monthly fee for grounds maintenance
Per-occurrence or seasonal flat-rate model for snow services
Add-on work for fall/spring clean-ups, mulching, annual flowers, and irrigation
Top 25 clients account for 71% of revenue. Most are long-term, some going back 10+ years. Buyer must ensure assignability of contracts and review any exclusivity provisions or early termination clauses.
Service Mix and Seasonality
Annual revenue breakdown:
Grounds maintenance (mowing, trimming, pruning): $2.1M (44%)
Snow plowing and salting: $1.4M (30%)
Enhancements (mulch, planting, cleanups): $750K (16%)
Irrigation service/repair: $200K (4%)
Misc. contract extras: $300K (6%)
The company smooths seasonal revenue by billing HOA clients on a 12-month flat-rate basis for both lawncare and snow removal. Municipal clients and business parks are billed per-event or per-inch snowfall.
Key weather resiliency features:
Tiered plow zones and backup crews
GPS tracking for trucks and sidewalk crews
Subcontractor reserve force for blizzard-level events
Dedicated meteorological monitoring platform
Buyers should:
Maintain seasonal buffer of $250K+ in working capital
Reprice snow contracts annually based on prior-year usage
Use dynamic pricing for enhancements during low-labor periods
Equipment and Facility
Owned equipment valued at ~$1.2M includes:
10 plow trucks (with salters)
3 skid steers
2 mini-excavators
3 dump trailers
8 zero-turn mowers
5 sidewalk crew trucks with brine tanks
All equipment is GPS-tracked and maintained on strict service intervals. Buyer should confirm clean title and age of fleet.
Facility:
3-acre yard with gravel staging area
3,800 sq ft office with parts storage and heated bay
Lease: $3,900/month, 2 years remaining with 5-year renewal option
Buyer could negotiate purchase of real estate later or secure a sale-leaseback to free up capital.
CapEx needs:
$60K–$80K to replace aging salters and trailers
$10K for field scheduling software
$15K–$20K for truck wraps and rebrand
Labor and Crew Management
Current staff:
6 mowing crews (2-person each)
4 sidewalk/plow teams
2 irrigation techs
1 fleet mechanic
1 office admin
1 scheduler/ops manager
All field staff are W-2 seasonal with returning employment letters. Foremen are incentivized with per-route bonuses and safety compliance awards.
Recruitment pipeline includes a summer internship-to-hire program and bilingual training manuals for returning workers.
Buyers should:
Provide retention bonuses for foremen and crew leads post-acquisition
Expand hiring radius using Indeed, local trade schools, and Facebook
Offer off-season bonuses or training stipends to encourage winter retention
Financial Performance
Revenue: $4.75M
COGS (labor, materials, fuel, subs): $2.55M
Gross Profit: $2.2M
SG&A (facility, insurance, admin, sales): $1.295M
Adjusted EBITDA: $905K (19.1%)
Gross margins:
Grounds: 42%
Snow: 37% (can vary by snowfall level)
Enhancements: 48%
Irrigation: 52%
AR is clean, with most clients paying monthly by check or ACH. Government clients pay net-30 to net-60. No major bad debt on file.
Sales and Marketing
Most new contracts come via:
RFPs for HOA boards and city bids
Local chamber and property manager associations
Word-of-mouth among board members
Google Business and Yelp profile
Post-close growth levers:
Proactive outreach to 100+ uncontracted HOAs in the service area
Dedicated sales rep for annual flower/holiday décor upsells
Drone-based property estimates for RFP submissions
Launch referral program for current board members
Legal and Risk
Fully compliant with:
OSHA field safety
DOT fleet logs and vehicle insurance
Landscaping pesticide handling licenses
Snow removal indemnity contracts with municipalities
Insurance:
$2M GL
$1M auto
$1M umbrella
Workers comp
No lawsuits, wage claims, or disputes. Buyers should review snow plow indemnity clauses and city requirements for 24-hour emergency response times.
Working Capital Needs
Payroll buffer: $130K
Snow equipment replacement: $80K
Contract migration and re-signing: $20K
Seller consulting agreement: $30K
CRM and route optimization: $12K
Ideal Buyer Profiles
Blue-collar roll-up groups targeting service route businesses
Tree service or irrigation companies seeking cross-sell scale
Entrepreneurs with operations/logistics background
Investors seeking low-churn, contract-backed seasonal cash flow
Post-Close Execution Plan
Meet top 25 clients and announce transition support from seller
Launch snow contract renegotiation cycle immediately post-close
Recruit 5+ additional workers ahead of the next labor season
Bundle enhancements into flat-rate multi-year proposals
Track plow event profitability by client and tighten underpriced routes
Conclusion
This commercial landscaping and snow removal company provides high-visibility recurring revenue anchored in long-term client contracts. Its fleet and crew are well-organized, and its 12-month billing model mitigates seasonal swings. With SBA 7(a) financing and seller support, a buyer can immediately cash-flow while expanding HOA reach, densifying plow routes, and selling high-margin seasonal services. The opportunity is durable, scalable, and ideal for route-based service operators ready to step into a recession-resistant niche.
