The temperature might be falling, but the landscaping and property maintenance industry is hot year-round — and private equity investors are taking notice.
M&A transactions in the space have increased by over 10x in the last decade, as businesses have proven to be dependable sources of revenue.
Source: Grata
Even in the cold months, demand for landscaping services is steady. Properties across the residential, commercial, and recreation & infrastructure sectors need maintenance including winterizing, tree trimming, snow removal, holiday light installation, and indoor garden care.
Landscaping businesses are also surprisingly resilient amid turbulent economic conditions, drawing the attention of middle market dealmakers. During the COVID-19 pandemic, for example, landscaping and property maintenance companies continued to generate steady returns.
In this PE Playbook, the Grata team has put together the need-to-know trends for investors considering making moves in the landscaping and property maintenance market, including:
- How the industry is fragmented
- Which sectors are seeing the most growth
- Top roll-ups in the industry
The market map above is not intended to be an exhaustive representation of companies in the space.
Companies that provide services that fall into multiple segments are categorized in this report by their primary offering.
Industry Overview
Market Distribution
Geography
Another draw of the landscaping and property maintenance industry is its geographical versatility. Every US state has a concentration of landscaping businesses, regardless of their climate or topography.
That said, investors looking to make deals in the space should consider prioritizing businesses in states with extreme weather conditions and seasonal swings, as properties in those regions require more maintenance and specialized plants.
Major urban areas, such as Los Angeles, San Francisco, and New York City, tend to see the highest costs for landscaping services due to their high cost of living. Landscaping in upscale city neighborhoods is usually even more expensive, as customers tend to request complex designs and high-end materials.
Ownership
Privately owned businesses and their subsidiaries account for 80% of the landscaping and property maintenance industry. Currently, there are approximately 10.3k independent companies in the space that are ripe for acquisition.
Segment Distribution
This report focuses on the following segments of the landscaping and property maintenance industry. Grata users can see curated lists of some of the companies used to create each segment by clicking the links below.
Public Comparables
On average, residential landscaping businesses see the most revenue and the highest margins. However, revenue growth in the sector has taken a slight dip as rising inflation has driven up the costs of materials and labor, causing many homeowners to scale back their spending. Additionally, the cooling housing market has resulted in less demand for new landscaping projects on recently purchased homes.
Meanwhile, the commercial landscaping sector is still growing. Nonresidential construction activity is projected to rise in the next several years, suggesting that demand for new commercial landscaping projects will continue to grow. Dealmakers entering the landscaping and property management industry now should consider prioritizing commercial businesses until inflation rates ease.
Private Comparables
Aligning with its growth in the public sphere, private commercial landscaping businesses see the most average revenue by far of the markets analyzed in this report. They also tend to outperform the industry average in terms of employee headcount and mean annual growth.
Meanwhile, companies focusing on recreation and infrastructure landscaping services are seeing the highest average growth estimate in the private sector.
Venture capital funding in the space is virtually nonexistent. This is likely due to the vast majority of landscaping and property maintenance companies being small and low-tech.
Acquisitions
Top Roll-Ups
The landscaping and property maintenance industry has seen a significant amount of roll-up activity over the last several years. SavATree has been the most acquisitive by far, with 33 investments in the space. Nearly all of its acquisitions were tree services companies.
Notable Acquisition
Source: Grata
Palero Gruppe Acquires Wiedenmann
Germany-based investment group Palero acquired turf maintenance equipment company Wiedenmann in September for an undisclosed amount. Wiedenmann has 250+ employees across Germany, Hungary, and the US.
If you’re an investor interested in companies similar to Wiedenmann, try these:
Learn more about this acquisition — or any of the others listed below — anytime, anywhere using the latest version of the Grata Go mobile app. Get all of the ownership and investment data you need right in the palm of your hand.
Turf Masters Brand Buys Executive Turf Care
Also in September, Turf Masters Brand purchased Turf Care, a Georgia-based lawn care services company. The acquisition supports Turf Masters Brand’s plan to expand its presence in Georgia.
Executive Turf Care will reportedly continue to operate under its current brand name. Turf Masters now has 33 branches across 11 states.
If you’re an investor interested in companies similar to Executive Turf Care, try these:
Senske Services Purchases Arbor-Nomics Turf, Inc.
Senske Services, a leading company in the home services industry, bought Georgia-based Arbor-Nomics Turf for an undisclosed amount in October. The acquisition is significant for Senske because it marks the company’s entry into the Southeastern US market.
If you’re an investor interested in companies similar to Arbor-Nomics Turf, try these:
Sperber Landscape Companies Acquires Cambridge Landscape Co
In October, Sperber Landscape Company purchased Massachusetts-based Cambridge Landscape Co. The financial terms of the deal were not disclosed.
The deal bolsters Sperber’s position in the Boston market and broadens its presence in the Northeast overall.
If you’re an investor interested in companies similar to Cambridge Landscape Co, try these:
Mariani Premier Group Buys HMI Landscaping of Arizona
Mariani Premier Group acquired HMI Landscaping in October for an undisclosed sum. The move marks Mariani’s 21st acquisition and signifies a significant expansion in the state of Arizona, particularly the Greater Phoenix area.
If you’re an investor interested in companies similar to HMI Landscaping of Arizona, try these:
The Nurture Landscape Group Purchases Tivoli Group Limited
Last month, the Nurture Landscape Group announced its acquisition of Tivoli Group Limited. The move is the company’s 50th and reportedly largest acquisition to date, though exact terms of the deal were not disclosed.
Tivoli will reportedly retain its branding and the company will sit with Nurture’s other four subsidiary brands.
If you’re an investor interested in companies similar to Tivoli Group Limited, try these:
Live Deals
Hundreds of live deals and active mandates are being showcased on the Grata Deal Network. Here are some examples of mandates related to the landscaping and property maintenance industry:
- A landscaping and agricultural equipment company with $3.4M in revenue and an expected valuation of $1.1M
- An online landscaping supplies company with $4.1M in revenue and an expected valuation of $2.4M
If you’re interested in these deals and you want to see more, register to learn more here.
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Get the Most Out of the Playbook
If you’re an investor interested in making moves in the landscaping and property maintenance space, Grata can help you put the insights in this article into action.
From in-depth market research to sourcing to pipeline management and relationship nurturing, Grata’s end-to-end dealmaking platform streamlines your workflows so that you can close more deals.
Schedule a demo today to get started.
