How much does a business broker charge?

Business broker commissions range from 5–12% of the final sale price depending on deal size. Smaller businesses (under $1M) typically pay 10–12%, while mid-market businesses ($1M–$5M) pay 6–10%. Some brokers also charge an upfront retainer of $2,500–$15,000 for CIM preparation, which is usually credited back at closing.

How long does it take to sell a business?

Most small to mid-market business sales take 6–12 months from broker engagement to close. The stages include CIM preparation (4–8 weeks), buyer outreach and qualification (4–12 weeks), due diligence (30–90 days), and closing (2–4 weeks). SBA-financed deals add 30–60 days to the timeline.

What is seller's discretionary earnings (SDE)?

Seller's Discretionary Earnings (SDE) is the standard valuation metric for small businesses. It equals net profit plus owner salary, owner benefits, non-recurring expenses, and depreciation/amortization. SDE represents the total economic benefit to a single owner-operator. Most small businesses sell at 2–4× SDE.

Do I need a business broker to sell my business?

While you can technically sell without a broker, data consistently shows brokered transactions close at 15–25% higher prices and at higher completion rates than unrepresented sales. The exception is if you already have an identified buyer at an agreed price. In any other scenario, professional representation pays for itself many times over.

What is an IBBA-certified business broker?

The International Business Brokers Association (IBBA) is the professional body for business brokers. IBBA-certified brokers hold designations like CBI (Certified Business Intermediary) or M&AMI (Merger & Acquisition Master Intermediary), which require transaction history, continuing education, and adherence to a code of ethics. These certifications signal professional commitment and deal experience.

What is the difference between a business broker and an M&A advisor?

Business brokers typically handle Main Street and lower-middle-market transactions — businesses selling for $100K to $10M. M&A advisors operate in the middle market ($10M to $500M+) with larger teams, investment banking capabilities, and institutional buyer relationships. For businesses under $5M, a CBI-certified business broker is usually the right choice.

How to Sell a Landscaping Business

Landscaping is one of the most actively acquired home services sectors. Annual maintenance contracts are the key value driver — and PE buyers are paying premium multiples for companies that have built them. Here is what you need to know.

Landscaping Business Valuation

The defining valuation factor in landscaping is the recurring revenue split. Annual maintenance contracts (mowing, fertilization, seasonal programs) are worth significantly more than one-off installation or hardscaping projects. Buyers are essentially paying for the quality and predictability of your recurring book.

Landscaping Multiple Ranges (2025–2026)

Primarily installation/hardscape

2–3× EBITDA

Project-based, low recurring revenue

Mixed maintenance + install

3–4.5× EBITDA

Stable base, some recurring contracts

Maintenance-dominant (60%+)

4–6× EBITDA

High-quality recurring revenue, predictable cash flow

Commercial maintenance platform

5–8× EBITDA

HOA/commercial contracts, management team in place

What PE Buyers Want in Landscaping

Landscaping consolidation is well underway. BrightView, U.S. LBM, and numerous regional platforms have been active acquirers. They are looking for specific characteristics:

✓

Annual contracts over 60% of revenue

The ratio that separates premium-valued businesses from average ones. Convert as many customers to annual programs as possible before going to market.

✓

$1M+ EBITDA

Below $1M EBITDA, buyers are mostly individual operators with SBA financing. Above $1M, PE platforms compete aggressively and multiples jump.

✓

Geographic density

A route-dense business (customers concentrated in a tight geography) is more valuable than the same revenue spread across a wide area. Routing efficiency drives margins.

✓

HOA and commercial contracts

Long-term commercial and HOA maintenance contracts are the highest-quality revenue in landscaping. Multi-year agreements are even better.

✓

Management team depth

If operations run through you personally, buyers will discount or require a long earnout. A foreman or operations manager who can run the business independently adds meaningful value.

Labor and Immigration Risk

Landscaping businesses that rely heavily on seasonal H-2B workers or have undocumented labor in their workforce face significant scrutiny in due diligence. Buyers — especially PE-backed platforms — have legal departments that will look carefully at your I-9 compliance, E-Verify usage, and labor classification.

This is not a reason not to sell — it is a reason to address the issue proactively. An experienced landscaping broker knows how to structure disclosures and find buyers who are comfortable with the risk profile.

Preparing Your Landscaping Business for Sale

Convert customers to annual contracts

This is the highest-ROI thing you can do in the 12–18 months before sale. Even converting 20% more of your customer base to annual programs can add a half-turn or more to your EBITDA multiple.

Build route optimization documentation

Show buyers that your routes are dense and efficient. Maps, drive time data, and revenue-per-route metrics tell a compelling operational story and support your margin claims.

Document your equipment fleet

Landscaping is equipment-intensive. Buyers will want a detailed equipment list with ages, maintenance records, and replacement value. An organized fleet binder signals a well-run operation.

Address HR and payroll compliance

Get your I-9s in order, review your worker classification, and make sure payroll records are clean and documented. HR issues discovered in due diligence are among the most common deal complications in landscaping.

How to Sell a Landscaping Business

Landscaping Business Valuation

What PE Buyers Want in Landscaping

Labor and Immigration Risk

Preparing Your Landscaping Business for Sale

Find a landscaping-specialist broker