This $1.1M Landscaping / Lawn Pays $147,708/Year After Debt

The numbers are mixed. Coverage falls short of the 2.0x Bulletproof threshold.

This is a landscaping / lawn business listed at $1.1M, generating $1.4M in annual revenue and $315,719 in seller's discretionary earnings. At a 3.48x cash flow multiple, the asking price is above the 3.00x Bulletproof threshold and above the 2.60x benchmark for landscaping / lawn businesses. The profit margin is 22%, above the 19% benchmark for landscaping / lawn businesses, about 1.2x the category figure.

We ran this deal through the DealScore Pro Bulletproof Calculator to see how it holds up across all five scoring criteria. Here is the full breakdown.

Deal Snapshot

Key Metrics
Industry
Landscaping / Lawn
Asking Price
$1.1M
Revenue
$1.4M
Cash Flow (SDE)
$315,719
Cash Flow Multiple
3.48x
Industry avg: 2.60x
Profit Margin
22%
Industry avg: 19%

The deal snapshot tells a mixed story. Revenue of $1.4M produces a 22% margin, above the 19% benchmark for landscaping / lawn businesses, about 1.2x the category figure. The 3.48x multiple is above the 3.00x Bulletproof threshold and above the 2.60x benchmark for landscaping / lawn businesses.

Financing Overview

Using the standard 80/10/10 SBA deal structure (80% SBA 7(a) loan, 10% seller financing, 10% buyer down payment), here is what this acquisition looks like when financed.

SBA Financing Breakdown
Total Acquisition Cost
$1.2M
Purchase price plus SBA guaranty fee and closing costs. The three financing slices below are shares of the purchase price only.
Down Payment
$110,000
SBA Loan
$880,000
10-year term, ~10.5% rate
Seller Note
$110,000
Typically 2-year standby, then 5-year amort
Cash Required at Closing
$143,000
Down payment plus $33,000 closing costs plus $182,781 working capital reserve
Annual Debt Service
$168,011
Post-Debt Cash FlowBefore replacing the owner’s role
$147,708 / year
DSCR
1.88x
Bulletproof minimum: 2.0x
Stress Test (20% Revenue Drop)
Passes
Still covers debt at $1.1M revenue

Why the Numbers Matter

The headline number most buyers fixate on is the asking price. But the asking price alone tells you almost nothing about whether a deal is worth doing. What matters is what happens after you finance it.

The post-debt cash flow of $147,708 per year is what is left after every loan payment on the figures entered. On a $110,000 cash investment, that is a strong return, and it is well above the $100K minimum threshold that the Bulletproof standard requires. This figure is calculated before any cost of replacing the owner’s own role in the business. Where the seller is also the person producing the revenue, a buyer should subtract what it would cost to hire that role before treating this as take-home pay.

The DSCR of 1.88x means the business generates $1.88 for every $1 of annual debt payment. SBA lenders require a minimum of 1.25x. The Bulletproof standard requires 2.0x. This deal clears the bank minimum but falls short of the Bulletproof target, leaving you with a thinner safety margin.

The stress test is where many deals that look good on paper fall apart. We model a 20% drop in revenue and check whether the business can still cover all debt obligations. This deal passes. Even at $1.1M in revenue (down from $1.4M), the cash flow still services the debt. That is the kind of resilience you want in a financed acquisition.

Industry Context

📈 How This Deal Compares to the Landscaping / Lawn Industry

Landscaping / Lawn carries an SBA default rate of 5.8%, close to the 5.1% all-industry average.

Demand is discretionary and among the first line items customers cut, the service radius is local, and there is little to stop a new competitor opening next door. Route density is the whole game, and a contract base with recurring maintenance is worth considerably more than the same revenue from one-off projects.

Multiple
3.48x
Avg: 2.60x
Margin
22%
Avg: 19%
Default Rate
5.8%
All industries: 5.1%

The deal has some solid fundamentals but the mixed signals mean lenders will scrutinize it more closely.

Strengths and Risks

✓ What Works

  • Coverage still holds at 1.50 after a modeled 20% revenue drop.

⚠ Watch Out For

  • Coverage of 1.88 is above the bank floor but below where I want it. One slow quarter and the loan payment starts competing with payroll.
  • At 3.48x the price is above the 2.99x top of the normal band. That is roughly $156k of extra purchase price financed over ten years, so it costs real money every month, not just at closing.
  • Every figure here comes from the listing and none of it is verified. A listing is marketing, and it is written by someone paid on the sale.

Who This Deal Is For

Best fit for:

Experienced operators who can underwrite the specific risk flagged above and who have the capital to absorb a soft year without the loan payment becoming the problem.

This deal is not a fit for a first acquisition at the current asking price.

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6.8 / 10
Bulletproof Verdict
At 3.48x the coverage comes in at 1.88, which is thin once you model a bad quarter. The business may be fine. The price is the problem, and that costs you every month for ten years, not just at closing.

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Frequently Asked Questions

Is $1.1M a fair price for a landscaping / lawn business?

At 3.48x seller's discretionary earnings, this asking price is above the 3.00x Bulletproof threshold and above the 2.60x benchmark for landscaping / lawn businesses. The Bulletproof threshold and the category benchmark are two different yardsticks, and this deal sits outside the stricter of the two.

What is a good profit margin for a landscaping / lawn business?

The benchmark profit margin for landscaping / lawn businesses is approximately 19%. This listing operates at a 22% margin, which is above the 19% benchmark for landscaping / lawn businesses, about 1.2x the category figure. That is a comparison against category medians, not a verdict on this listing.

Can I buy a landscaping / lawn business with an SBA loan?

Yes. Landscaping / Lawn businesses are commonly financed through SBA 7(a) loans using an 80/10/10 structure: 80% SBA loan, 10% seller financing, and 10% buyer down payment. For this $1.1M deal the down payment is $110,000, but cash required at closing is $143,000 once closing costs and a working capital reserve of $182,781 are counted. SBA lenders require a minimum DSCR of 1.25x, but conservative buyers target 2.0x or higher. This deal's 1.88x DSCR clears the bank minimum but falls short of the conservative target.

How much do landscaping / lawn business owners actually make?

Owner earnings vary widely based on revenue, pricing, and operational involvement. This landscaping / lawn business generates $315,719 in seller's discretionary earnings (SDE) before debt service. After SBA financing under the 80/10/10 structure, the buyer would take home approximately $147,708 per year. That post-debt figure is the number that actually matters for a financed acquisition, because it reflects what ends up in your pocket after every loan payment is made.