Lawn & Garden Business Valuations
Independent valuations for lawn mowing and garden maintenance businesses, franchised and independent, across Australia.
Green Standard values lawn mowing rounds, garden maintenance businesses and franchised lawn and garden territories. What is being sold is usually a round of regular customers, and its value depends on how closely they sit together, how long they stay and who does the work.
A round of customers packed into a few adjoining suburbs, on a regular cycle and staying for years, is a different asset from the same number of customers scattered across a wide area and turning over every season. An owner who mows every property personally is selling a job unless the business can run with someone else on the mower.
We examine the round, the churn, the franchise or brand arrangements, the equipment and the owner’s own part in the work, then form a view on the earnings a new owner could reasonably expect to keep.
How much is a lawn & garden business worth?
A lawn mowing business is worth what its round earns after a market wage is paid for the mowing the owner does, adjusted for how likely the customers are to stay. A dense round of long-standing customers, with workers other than the owner on the mowers, is worth more than a scattered round that depends on the owner. A franchise round is valued on what is left after every franchisor charge.
Lawn & Garden businesses we value
What affects the value of a lawn and garden business?
These are the questions we work through when we value a lawn and garden business. Some raise value, some reduce it, and most matter only in combination with the others.
Revenue quality
Round density
Every minute spent driving between properties is unpaid, so a round concentrated in a few suburbs earns more per hour than the same revenue spread widely. We map the customers, count properties per day and compare revenue per hour worked.
Customer churn and retention
Customers leave when they move, when a neighbour’s offer is cheaper, or when they start mowing themselves. We measure churn over several years, the tenure of the longest-standing customers, and how quickly new customers replace those who leave.
Visit frequency and pricing
A fortnightly cycle and a four-weekly cycle at the same price per visit produce very different revenue. We look at how prices are set, when they were last increased and what happened to customer numbers afterwards.
Add-on and one-off work
Hedge trimming, green waste removal, fertilising and clean-ups lift the value of each customer, but are booked less regularly than mowing. We separate regular visit revenue from add-ons and one-offs, because a buyer will price them differently.
Seasonality of growth
Spring brings fast growth and extra visits, while winter slows growth and thins the work, and drought can cut it further. We examine monthly revenue over several years, so that a sale priced on a spring run rate does not overstate what the business earns across a full year.
The owner and the crew
Owner-operator model
Where the owner mows most of the round, much of the profit is the owner’s wage. We deduct a market cost for that labour, and what remains shows what a buyer who also has to work the round would actually be buying.
Crew and subcontractor reliance
Rounds are often run by casual workers or contractors who are easy to lose and who may start their own rounds nearby. We look at how long each worker has stayed, how they are engaged, and who the customers actually deal with.
Relationships held by the owner
Many customers know the person on the mower rather than the business name. We consider how much would carry over under a new owner, and what handover period would be needed to keep the customers.
Franchise, territory and brand
Franchise agreement terms
Royalties, marketing levies, the term remaining, renewal rights and any transfer fee all change what the franchisee keeps. We read the agreement and the disclosure document, and work out the earnings after every franchisor charge.
Territory rights
An exclusive territory of known size is worth more than a loosely defined one, and the franchisor’s ability to reshape boundaries matters. We look at the territory map, the number of households in it and the leads the franchisor supplies.
Franchisor consent to transfer
A franchisee generally cannot sell without the franchisor’s consent, and the franchisor may require training, charge a fee or hold a right to buy first. These terms affect the price and timing of a sale, so we identify them and leave their legal effect to the owner’s lawyer.
Independent brand and lead sources
An independent operator owns the brand, phone number, website and online listings, and those are what a buyer inherits. We check how new customers are found, what that costs, and whether the sources are in the business’s name.
Equipment and operations
Equipment
Ride-on and walk-behind mowers, trimmers, blowers, trailers and a ute are needed to earn the profit. We look at age, condition, finance owing and replacement cost, because worn equipment is a cost the profit and loss statement may have deferred.
Scheduling, billing and customer records
A round that runs from route software, direct debit and a clean customer list is easier to hand over and easier for a valuer to verify. We check what records exist and who owns them.
Insurance and incident history
Stones thrown from mowers and trimmers damage windows and cars, and injuries happen. We look at the claims history, the cover held and whether the business has the right insurance for its work.
How a buyer reads a lawn and garden business
Buyers include individuals who want to run a round of their own, existing operators and franchisees adding customers in a neighbouring area, and larger garden maintenance groups. Many sales are of a round rather than a company: the buyer takes over the customers, the equipment and the day-to-day work.
A round with dense, long-standing customers, documented pricing and workers other than the owner doing a good part of the work attracts the widest interest. A round where the owner does nearly all the mowing, customers turn over quickly or the franchise terms limit what the franchisee keeps is usually priced more cautiously, because what is on offer is closer to a job than to a business.
A valuation works through the same questions, but independently and with the reasoning written down.
Adjustments we often make in lawn & garden businesses
Reported profit is restated to what the business earns on a commercial footing before any method is applied. Every adjustment is listed in the report.
Owner wages
Replacing drawings, or a salary set for tax reasons, with a market cost for the mowing and garden work the owner actually does.
Family members on payroll
Wages paid above or below market rate, or for roles that a buyer would not need.
Vehicles and fuel used privately
Private use of the ute and trailer, and private vehicles run through the business.
Franchise fees and levies
Royalties, marketing levies and one-off fees such as renewal or transfer charges, so that earnings are shown after every franchisor charge.
Equipment written off for tax
Equipment purchased and written off in a single year, which can hide the ongoing cost of replacing mowers and trimmers.
One-off clean-ups and storm work
Revenue from large clean-ups, storm damage or similar jobs that would not be expected to recur at the same level.
Labour paid at other than market rates
Casual workers or family helpers paid above or below the market cost of the same work.
Information we typically review
You upload documents through the secure client portal after the engagement is confirmed. We send a list specific to your business; nothing needs to be gathered before the intake.
The financial pack
- Profit and loss statements, usually the last three years and the current year to date
- Balance sheets for the same periods
- Tax returns where relevant
- Payroll summary and employee information
- Vehicle, plant and equipment schedules
- Major customer information
- Recurring contracts and service agreements
- Revenue breakdown by service line
- Owner remuneration and drawings
- Unusual or non-recurring income and expenses
For a lawn & garden business, also
- Customer list showing suburb, visit frequency, price per visit, start date and payment method
- Revenue by month for the last three years, split into regular visits, add-ons and one-off work
- Round map or route schedule showing properties per day and drive times
- Customers gained and lost each month, with reasons where recorded
- Franchise agreement and disclosure document, with any renewal, transfer or territory correspondence
- Territory map and records of leads supplied by the franchisor
- Equipment schedule with age, condition and finance owing
- List of workers and how each is engaged
- Insurance policies and claims history
What a lawn & garden business valuation costs
Fixed fees, confirmed in writing before work begins. The standard fee applies to most established lawn & garden businesses.
Independent Business Valuation
$1,995+ GST
For established trade and field-service businesses requiring an independent valuation.
- Review of financial information
- Normalisation of earnings
- Valuation methodology selected for the business and purpose
- Industry and business risk assessment
- Consideration of plant, vehicles and equipment
- Owner dependency assessment
- Goodwill analysis
- Valuation range and conclusion
- Professionally prepared valuation report
- Draft provided before finalisation
Accountant and Adviser Partner
$1,495+ GST
For accountants and professional advisers who refer valuation matters regularly.
- Streamlined client onboarding
- Adviser kept informed with client authority
- Independent report addressed to the client
- Secure document portal for the client
- Repeat-client workflow
- Partner pricing on every referred matter
Complex Valuations
From$2,995+ GST
For matters with more moving parts. Quoted as a fixed fee in writing before work begins.
- Multiple entities or divisions
- Significant plant and equipment
- Unusual ownership structures
- Partnership and shareholder disputes
- Complex normalisations
- Significant customer concentration
- Historical valuation dates
Fees are fixed and confirmed in writing before work begins.
Lawn & Garden valuations: common questions
How much is a lawn mowing business worth?
It is worth what the round earns after a market wage is paid for the work the owner does, adjusted for how likely the customers are to stay. A dense round with long-standing customers and workers other than the owner is worth more than a scattered one that depends on the owner on the mower. Our guide on valuing a business with owner dependency explains how we treat the owner’s own work.
Can I sell my franchise territory to anyone?
Usually not without the franchisor’s consent. Most franchise agreements set out who can buy, what training is needed, any fee and sometimes a right for the franchisor to buy first. We read those terms and show how they affect the value, but whether a transfer is permitted is a question for your lawyer and the franchisor.
How do you treat customers who might leave when I sell?
We use the evidence of how customers have behaved. The tenure of existing customers, the churn in previous years and the way new customers are found all show how much of the round is likely to stay. We do not assume every customer will remain, and the report states the allowance we made.
Is my mowing equipment valued on top of the round?
Usually not. The mowers, trimmers and trailer needed to earn the profit are part of the value of the business rather than an addition to it. Equipment the business does not need, and finance owing on what it uses, are dealt with separately. Our guide on whether equipment adds to business value explains the distinction.
Related industries and guides
Valuing a lawn & garden business? Start with a short intake.
An Independent Business Valuation is $1,995 + GST, with a draft before the report is finalised. Typical turnaround is 3 to 7 business days once all required information has been received.