This $839k Landscaping / Lawn Pays $276,854/Year After Debt

Priced at or below the benchmark multiple and coverage clears the 2.0x Bulletproof threshold. Here is how it holds up across all five criteria.

This is a landscaping / lawn business listed at $839,000, generating $1.3M in annual revenue and $405,000 in seller's discretionary earnings. At a 2.07x cash flow multiple, the asking price is within the 3.00x Bulletproof threshold and below the 2.60x benchmark for landscaping / lawn businesses. The profit margin is 32%, well above the 19% benchmark for landscaping / lawn businesses, about 1.7x 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
$839,000
Revenue
$1.3M
Cash Flow (SDE)
$405,000
Cash Flow Multiple
2.07x
Industry avg: 2.60x
Profit Margin
32%
Industry avg: 19%

The deal snapshot tells a clean story. Revenue of $1.3M produces a 32% margin, well above the 19% benchmark for landscaping / lawn businesses, about 1.7x the category figure. The 2.07x multiple is within the 3.00x Bulletproof threshold and below 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
$881,286
Purchase price plus SBA guaranty fee and closing costs. The three financing slices below are shares of the purchase price only.
Down Payment
$83,900
SBA Loan
$671,200
10-year term, ~10.5% rate
Seller Note
$83,900
Typically 2-year standby, then 5-year amort
Cash Required at Closing
$109,070
Down payment plus $25,170 closing costs plus $162,500 working capital reserve
Annual Debt Service
$128,146
Post-Debt Cash FlowBefore replacing the owner’s role
$276,854 / year
DSCR
3.16x
Bulletproof minimum: 2.0x
Stress Test (20% Revenue Drop)
Passes
Still covers debt at $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 $276,854 per year is what is left after every loan payment on the figures entered. On a $83,900 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 3.16x means the business generates $3.16 for every $1 of annual debt payment. SBA lenders require a minimum of 1.25x. The Bulletproof standard requires 2.0x. This deal clears both with room to spare, which means you have a real safety margin if revenue softens or costs spike unexpectedly.

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 $1M in revenue (down from $1.3M), 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
2.07x
Avg: 2.60x
Margin
32%
Avg: 19%
Default Rate
5.8%
All industries: 5.1%

Combined with a deal that performs well on the fundamentals, this is the profile lenders like to fund.

Strengths and Risks

✓ What Works

  • Debt coverage of 3.16 against a bank minimum of 1.25. That is margin for a bad year, not just a good one.
  • Coverage still holds at 2.53 after a modeled 20% revenue drop.
  • Owner cash flow of $277k after every loan payment is made.
  • Priced at 2.07x, inside the 2.21x to 2.99x band these businesses normally trade in.

⚠ Watch Out For

  • 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:

A buyer with roughly $84k for the equity injection, plus closing costs and working capital on top.

Someone who needs the business to pay them from day one. After debt service this leaves $277k.

An owner-operator who intends to run it, since the financing math here assumes no separate manager salary.

Not a passive investor. SBA acquisition financing requires the buyer to be actively involved.

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10.0 / 10
Bulletproof Verdict
This clears all five thresholds at 2.07x, inside the 2.21x to 2.99x range landscaping / lawn deals normally trade in. Coverage is 3.16 and still holds at 2.53 after a modeled 20% revenue drop, which is the number that actually matters. Anyone covers debt in a good year. Owner cash flow after every payment is $277k. Deals that clear all five on paper are less common, and strong listings attract competing buyers, so the real work is verifying the numbers fast.

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Frequently Asked Questions

Is $839,000 a fair price for a landscaping / lawn business?

At 2.07x seller's discretionary earnings, this asking price is within the 3.00x Bulletproof threshold and below the 2.60x benchmark for landscaping / lawn businesses. The Bulletproof threshold and the category benchmark are two different yardsticks, and this deal sits inside 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 32% margin, which is well above the 19% benchmark for landscaping / lawn businesses, about 1.7x 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 $839,000 deal the down payment is $83,900, but cash required at closing is $109,070 once closing costs and a working capital reserve of $162,500 are counted. SBA lenders require a minimum DSCR of 1.25x, but conservative buyers target 2.0x or higher. This deal's 3.16x DSCR comfortably clears both thresholds.

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 $405,000 in seller's discretionary earnings (SDE) before debt service. After SBA financing under the 80/10/10 structure, the buyer would take home approximately $276,854 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.