QoE & Sell-Side Prep for Landscaping Companies
Private equity has discovered lawn care, and they are buying everything with a truck and a route. Good news for your exit — as long as your books can prove the business is as good as you know it is.
What a buyer is really paying for
A landscaping buyer isn't buying your mowers. They're buying recurring maintenance revenue — the contracts that renew every season whether or not you show up to sell them. The more of your revenue that's genuinely recurring, and the cleaner you can prove it, the higher the multiple.
The problem is that most owner-run landscaping books mix it all together: recurring maintenance, one-off installs, snow removal, the truck you sold on Facebook Marketplace. To a buyer, undifferentiated revenue is risky revenue, and risky revenue is cheap. QoE prep is where you separate the durable from the lumpy before someone else does it to you.
EBITDA — roughly your profit before interest, taxes, and the accounting stuff — is the number the price hangs on. Getting it right, with defensible add-backs, is worth real money.
Add-backs are where deals are won and lost
Your business pays for a few things a new owner won't: your above-market salary, the truck your son drives, that trip to the equipment convention in Las Vegas that was 40% convention. Those are legitimate add-backs that raise your adjusted EBITDA — but only if they're documented well enough to survive a buyer's accountant poking at them.
We build the bridge from your reported profit to a clean, normalized number, with support for every adjustment. Done right, it doesn't look like you're inflating anything. It looks like you did your homework — which quietly tells the buyer the rest of the diligence will go smoothly too.
How Kaizen runs it
We run a diligence-grade scan of your last twelve months, restate revenue into recurring versus one-time, normalize owner comp and personal expenses, and build the Reported-to-Adjusted EBITDA bridge a buyer's QoE firm will actually respect. You get a workbook, a narrative memo, and a list of the things to clean up before the buyer's team finds them.
The goal is simple: walk into the process with the answers already prepared, so diligence confirms your story instead of picking it apart.
What's included
- Trailing-twelve-month Reported → Adjusted EBITDA bridge with support for every add-back
- Revenue restated into recurring maintenance vs. install vs. seasonal
- Owner compensation normalized to a market rate a buyer will accept
- Personal and one-time expenses identified and documented as add-backs
- Customer and contract concentration analysis (buyers ask — have the answer ready)
- Working-capital peg estimate so the closing true-up doesn't ambush you
- A pre-diligence clean-up list: fix it before their team finds it
- Narrative QoE memo plus a defensible workbook you can hand to advisors
Pricing
Straight answers
Isn't this what the buyer's QoE firm does anyway?
They do it to protect the buyer — every dollar they disqualify lowers your price. Sell-side prep does it first, on your side, so you set the anchor and they confirm it instead of driving it down.
How far ahead of a sale should we start?
Ideally 6–12 months. That leaves time to fix what the scan finds — clean up the revenue split, document the add-backs — while it still looks like good hygiene rather than a last-minute scramble.
My books are a mess. Is it hopeless?
No, but it's a two-step job: reconcile and clean first, then normalize. We do both. What we won't do is build an EBITDA bridge on books that don't tie out — that's the kind of thing diligence exists to catch.
What if I'm not selling for a few years?
Then you probably don't need a full QoE yet — but knowing your real recurring-revenue mix and adjusted EBITDA now tells you what the business is worth and what to improve. That's a reporting engagement, not this one.
Related
Free 20-minute books assessment
We'll show you the five things we'd fix first in your books — useful whether you hire us, hire someone, or do neither.
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