As an investment banker who specializes in guiding business owners through company sales, I’ve been tracking a compelling trend in the commercial landscaping sector. Over the past few years, this industry has demonstrated remarkable resilience and attracted significant investor attention. From 2023 to YTD 2025, the commercial landscaping industry has witnessed 131 deal closures in the US alone, according to CapIQ—a clear signal that smart money recognizes the sector’s potential.
Why Investors are Cultivating Interest in Landscaping
The commercial landscaping industry has become increasingly attractive to investors, including private equity funds and strategic buyers, due to several compelling factors:
Predictable and Recurring Revenue Streams: Commercial landscaping services generate steady, recurring cash flows through maintenance contracts that remain resilient even during economic downturns. The COVID-19 pandemic proved this durability, as outdoor spaces became more critical than ever for businesses and institutions.
Massive Fragmentation Equals Consolidation Opportunity: The landscaping market is dominated by small-scale, mom-and-pop operations, creating substantial opportunities for consolidation. Strategic buyers are actively pursuing deals to expand their geographic reach, gain market share, and access experienced management teams and skilled labor.
Strong Growth Drivers: Multiple tailwinds are propelling the industry forward. According to the Commercial Facility Landscaping Market report, US commercial space is expected to reach 125 billion square feet by 2050—a 29% increase over 2022 levels. This expansion, combined with the return-to-office trend that saw office visits increase 10% in 2024, is driving significant demand for professional landscaping services.
Private Equity’s Growing Appetite: By November 2024, PE firms had made over thirty platform investments in the industry, with this figure expected to increase significantly. The combination of tech-enabled scalability, proven high-return exits, and consolidation opportunities has made landscaping an attractive sector for both platform investments and add-on acquisitions.
Headwinds Business Owners Should Consider
While the outlook is promising, commercial landscaping companies face several challenges:
Labor Cost Pressures: The shortage of skilled labor due to stricter immigration laws and limited interest from younger workers in physically demanding roles is driving up labor costs and squeezing profit margins.
Tariff and Supply Chain Disruptions: Elevated tariff rates on key trade partners like Mexico, Canada, and China are increasing costs for imported materials, plants, fertilizers, and equipment. This uncertainty is disrupting supply chains and may force companies to pass costs onto customers.
Inflation and Interest Rate Impacts: Rising inflation is driving up costs across materials, fuel, and labor, while high interest rates have cooled construction activity, dampening demand for new landscape installations in the near term.
Implications for Business Owners
Given the heightened investor interest and favorable long-term market conditions, commercial landscaping business owners considering a sale should be aware of the following opportunities:
Strategic Buyers Dominate the Market: Strategic buyers have accounted for approximately 80% of deals year-to-date in 2025 and 90% in 2024, indicating strong appetite from companies looking to expand their operations.
Active M&A Environment: With 131 deals completed from 2023 to YTD 2025, the market demonstrates consistent transaction activity, creating opportunities for well-positioned sellers.
Preparing Your Landscaping Business for Sale
To capitalize on these favorable conditions and attract premium valuations, landscaping business owners should focus on the following areas:
- Build a Strong Mid-Level Management Team: Buyers favor businesses with clear organizational structures, well-defined roles, and minimal reliance on the owner for day-to-day operations. A solid management team ensures smooth transition and operational continuity.
- Establish Predictable and Diversified Revenue: Focus on building recurring income through maintenance contracts while maintaining a balanced mix of services including design, seasonal work, and installations. This diversification ensures financial stability and year-round demand.
- Prioritize Customer and Employee Retention: High retention rates for both customers and employees are critical value drivers. Exceptional customer service and strong client relationships generate recurring cash flows, while retaining skilled employees maintains service quality and reduces training costs.
- Organize Your Financial Foundation: Ensure financial statements from the past 3-5 years are accurate and transparent. Well-organized accounting builds trust with potential buyers and can significantly impact valuation.
- Address Supply Chain Risks: In the current tariff environment, businesses with strong domestic sourcing strategies and diversified supply chains will be better positioned for valuation and negotiation.
- Assemble an Expert Advisory Team: Engage professionals experienced in M&A transactions within the landscaping industry, including an investment banker, transaction attorney, and tax advisor.
Conclusion & Next Steps
The commercial landscaping industry presents a compelling opportunity for business owners contemplating a sale. The combination of strong fundamentals—including recurring revenue streams, consolidation opportunities, and favorable long-term growth trends—has attracted significant investor interest across both strategic and financial buyers.
While near-term challenges around labor costs, tariffs, and economic headwinds require careful navigation, well-positioned companies with strong management teams, diversified revenue streams, and solid operational foundations are likely to attract premium valuations in the current market environment.
The key is preparation. By addressing the critical success factors that buyers value most—predictable cash flows, strong management systems, and operational excellence—landscaping business owners can position themselves to capitalize on this favorable M&A environment.
If you’re considering selling your commercial landscaping business—whether now or in the next few years—having a conversation with an experienced advisor can help you understand your options and develop a strategy to maximize value.
About Forbes Partners
Forbes Partners is an award-winning middle market investment banking firm with deep expertise in mergers and acquisitions, raising capital, and financial restructuring. With nearly 300 years of combined experience and over $85 billion in transactions, Forbes Partners delivers strategic guidance and exceptional results for middle market companies across a variety of industries.
Brooks Crankshaw is a Managing Director at Forbes Partners in Denver, Colorado. He specializes in advising business owners on the sale of their company, growing through acquisition, or financing their strategy.