For years pest control company valuations have outpaced those for lawn care firms, despite similar business models. In our experience as pest control and lawn care accountants and business brokers, the gap is now closing.

Valuations and activity are high on the lawn care side of the industry. In 2025, three-quarters of the M&A transactions we’ve handled have been in lawn care. That’s a dramatic shift from recent years, which have been dominated by pest.

Let’s discuss the reasons for rising lawn care company valuations and M&A activity today.

Demand Shifts

Pest control valuations began to surge 10 to 15 years ago, as global pest control players Rentokil and Anticimex entered the North American market and aggressively acquired companies. Traditional strategic buyers like Rollins and Terminix followed suit, driving up multiples.

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At that time valuations lagged on the lawn care side. TruGreen — owned by private equity firm Clayton, Dubilier & Rice since 2014 when it spun off from ServiceMaster — was the primary acquirer in the market, and it lacked competition from other buyers. As a result, TruGreen had not been willing to pay top dollar for acquisition targets.

But over the past several years, private equity firms began recognizing what many of us in the industry have known all along: Lawn care companies share many attributes with pest control companies, including attractive recurring revenue models.

If pest control companies are desirable and worthy of excellent valuations, why shouldn’t lawn care firms be?

PE Playbook

In fact, private equity buyers are flooding the home services across multiple verticals: HVAC, roofing, pool services, plumbing and more.

In pest and lawn, PE buyers typically enter a market by purchasing a $20 million-plus company, which becomes their platform. Next, they roll up smaller firms at lower multiples. Their goal is to scale to $100 million or more, at which point they can sell to a larger PE firm or, in some cases, go public.

In any case, more buyers in the market means better valuations for sellers. There are a handful of PE-backed lawn care firms actively making acquisitions today.

A few years ago, lawn care companies may have sold for one times revenue or perhaps five times earnings before interest, taxes, depreciation and amortization (EBITDA). It’s difficult to pinpoint an average valuation today because there are many variables, but it’s fair to say they’re much higher than they have been in recent history.

What Lawn Care Owners Should Do Now

While valuations are strong, not every company will get top dollar. Sellers should understand the factors buyers look for. They include:

• Location: Fast-growing regions with high population density are typically most desirable.
• Low customer attrition: Although lawn care clients turn over more frequently than pest customers, excellent retention rates are still a must.
• Brand recognition: A recognizable name and a great reputation boost value.
• Profitability: Buyers value high gross margins in addition to customer profitability (dollars per hour and dollars per square foot).

If you’ve toyed with the ideal of selling your lawn care company any time over the last decade but decided to wait, you may be surprised to hear what it’s worth today. Demand for high quality companies is strong, multiples are significantly higher and the market is competitive.

That said, selling to a PE-backed firm is often more complicated than selling to a strategic buyer. The due diligence process is more grueling, and the buyer may require you to stay onboard post-sale to help grow the business.

For lawn care companies with strong customer retention, excellent brands and solid KPIs, now is a good time to explore your options.

Contact us at PCO Bookkeepers & M&A Specialists for a realistic assessment about what your business is worth in today’s market, so you can decide whether to hold or sell.