Ravenwood Business Loans of Waukegan, IL wrote this guide for buyers of lawn care and landscaping companies in Lake County, IL. It covers what a route is worth, how to inspect equipment and records, and how a purchase can be financed with a term loan and equipment financing.
A crowded field of small operators
Lake County, IL had 706 landscaping services employers in 2023, and 85.4% had fewer than five employees (County Business Patterns). Another 778 landscaping businesses operated without payroll in 2024 (Nonemployer Statistics). A market made of many small companies is one where owners retire, sell routes or merge, so purchase opportunities come up. See landscaping company funding for the wider picture.
The four things the price really pays for
- Customer contracts and routes: the recurring revenue, and the main source of value
- Equipment: trucks, trailers, mowers and attachments, each with a condition and remaining life
- Crew: experienced workers who may or may not stay
- Name and phone number: how customers find the business
Ask which of these the price covers. A list of customers without contracts is worth less than contracts that renew automatically.
Records to ask the seller for
- Business tax returns for the last few years
- Bank statements showing deposits by month
- The customer list with services, prices and contract terms
- Customer retention: how many of last year's accounts renewed
- An equipment list with year, hours and condition
- Any equipment loans or liens on the fleet
If revenue is uneven through the year, the bank statements will show it; plan your first year's cash around those months, not around the annual total.
How a lawn care business purchase is financed
The purchase price can be funded with a term loan, repaid from the acquired routes. Equipment that needs replacing soon after the sale can go on equipment financing separately, matched to its own life. Some sellers carry part of the price as a note; partners will want to see that agreement.
Route arithmetic (hypothetical)
Take the seller's contract revenue, subtract the crew wages, fuel, insurance and equipment costs you will actually carry, and compare what is left with the term loan payment and your own pay. Then rerun it with some customers lost in the first year. If the deal only works with every customer staying, the price is too high.
Equipment inspection
Mowers and trucks are where hidden costs sit. Have a mechanic look at the fleet, compare hours with replacement intervals, and check titles for liens. Replacement costs in the first year belong in your plan.
A first-year cash plan for the new owner
The first year after a purchase carries extra costs: rebranding trucks, introducing yourself to customers, replacing worn equipment and sometimes paying a crew lead more to stay. List those month by month alongside the seller's revenue pattern. If revenue concentrates in certain months, the loan payment still arrives every month, so plan where it comes from in the lighter ones. A modest line of credit alongside the purchase loan can cover that, if a partner approves both.
Legal points to settle
Whatever structure you choose, keep the business name consistent on the new bank account and contracts; local business data is on the Waukegan, IL data page, and more posts are on the blog.
By Ravenwood Business Loans · Updated
