What is your tree service business worth?
Recurring commercial / HOA contracts, crew & equipment depth, and plant-health-care attach. Get a real number, the same way a buyer would calculate it, in a few minutes. Free, confidential, and built specifically for tree service owners.
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Tree Service valuation multiples in 2026
Almost every private service business is valued the same way: adjusted earnings multiplied by a market multiple. Smaller owner-operated companies are valued on SDE (Seller's Discretionary Earnings). Larger companies, generally those above $1M in earnings, are valued on EBITDA.
A worked example
Say an owner-operated tree service company shows about $400K in adjusted SDE, the owner's take-home plus salary, perks, and one-time costs added back. Here is the SDE range a buyer might apply:
Same business, same earnings. The difference between the lower end and the strong end is roughly $1.08M, and it is decided almost entirely by the value drivers below.
Where these numbers come from
Last updated June 2026These ranges are built from current published M&A advisory data, broker transaction databases, and private-market benchmarks, then calibrated to what a typical owner-operated tree service business actually sells for. Every figure below is sourced.
- Typical SDE multiple
- 2.5x to 3.5x SDE
- Full SDE range
- 1.8x (owner climbs, storm-event-heavy) to 4.5x (ISA arborists on staff, plant-health-care recurring revenue)
- EBITDA range (larger companies)
- 2.5x to 4.0x (under $500K EBITDA), 4.0x to 6.5x ($500K to $1.5M), 5.0x to 7.0x (20-30% plant health care)
- When PE buyers start competing
- SavATree and Davey compete from ~$1M to $1.5M EBITDA with 3+ ISA arborists and 25%+ recurring plant health care.
Revenue multiple ~0.3x to 1.03x; equipment fleet (chippers, bucket trucks, cranes) often valued separately.
A $150K to $350K SDE owner-climber sells in the $375K to $875K range, net of separately-valued equipment.
Sources
- Home Services Business Valuation (2025): SDE 2x to 4x (typical 2.8x); EBITDA 3.2x to 6.5x; Revenue 0.3x to 0.85x.
- Peak Business Valuation (Mar 2025): SDE 3.14x to 3.64x; EBITDA 3.79x to 4.10x; Revenue 0.58x to 1.03x (closed-transaction database).
- CT Acquisitions (2026): Owner-climber sub-15% PHC 3.0x to 4.0x SDE; 30%+ PHC 6.5x to 8.5x EBITDA; platform-grade 7.5x to 10.0x.
- John Salony M&A (2026): 2.5x to 4.0x SDE under $5M revenue; 40%+ commercial/municipal recurring at the higher end.
Multiples are benchmarks, not guarantees. Your actual number depends on the value drivers below and is best confirmed against your real financials. See the full multiples table across every industry for methodology.
What drives value in a tree service business
Recurring revenue
Buyers pay a premium for predictable income. Growing your annual maintenance contracts toward 40% or more of revenue is often the single fastest way to lift your multiple.
Owner independence
A business that runs without the owner answering every call is worth far more than one where the owner is the business. A strong number-two and documented systems de-risk the deal.
Clean financials
Accrual-based books that reconcile and tell a clear story reduce a buyer's perceived risk. Messy or cash-basis books quietly cost owners real money at the table.
Steady growth
A track record of consistent growth in an attractive, consolidating market signals durability, and durability is what turns a 4x into a 6x or 7x.
How to raise what your tree service business is worth
The gap between an average sale and a strong one is rarely about revenue. It comes down to how transferable the business is, how clean the earnings look, and how little the operation depends on the owner. Most tree service owners can move their multiple meaningfully in 12 to 24 months by working on a short list of things buyers care about.
Make yourself replaceable
A buyer is purchasing a business, not a job. If the company cannot run for two weeks without you answering every call, that risk gets priced in as a discount. Document your processes, build a second-in-command, and shift customer relationships onto the company rather than your personal cell phone.
Clean up the financials
Buyers pay for earnings they can verify. Accrual-based books, clear add-backs, and separated personal expenses make your real profit obvious and defensible. Messy or mixed records force a buyer to assume the worst, which always lands in their favor, not yours.
Build recurring and repeat revenue
Predictable revenue is worth more than the same dollar earned one job at a time. Service agreements, maintenance plans, and a loyal repeat-customer base tell a buyer the cash flow will still be there after you hand over the keys, and that confidence shows up directly in the multiple.
Diversify the customer base
If one client or referral source drives a large share of revenue, that is concentration risk. Spreading revenue across many customers makes the business sturdier and removes one of the most common reasons buyers lower their offer or walk away during diligence.
When is the right time to sell?
The best time to sell a tree service business is while it is still growing and you still have the energy to run it well. Buyers pay the most for momentum, not for a tired operation in decline. The owners who get top dollar usually start preparing a year or two before they actually want out, which gives them time to fix the value drivers above instead of selling into whatever number the market hands them on short notice. Knowing your current Exit Score is the first step. It tells you where you stand today and exactly what to work on before you go to market.
See your tree service business's number
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Tree Service valuation: common questions
What multiple do tree service businesses sell for?
Smaller, owner-operated tree service businesses (under about $1M in earnings) are usually valued on SDE at roughly 1.8x to 4.5x, with most landing near 2.8x. Larger companies are valued on EBITDA, typically 3x to 8x, anchored around 4.75x. Where you land inside that range depends on recurring revenue, how dependent the business is on you, customer concentration, and how clean your financials are.
How do I increase the value of my tree service business before selling?
The biggest levers are growing annual maintenance contracts, reducing how much the business depends on you personally, keeping clean accrual-based books, and avoiding heavy reliance on any single customer. Each of these directly moves the multiple a buyer is willing to pay. The Exit Score shows you exactly which levers matter most for your specific situation.
Is the Exit Score a formal appraisal?
No. It is a fast, plain-English estimate based on the same method buyers use: adjusted earnings times a market multiple. It is a starting point for your planning, not a certified valuation. A formal appraisal requires a professional with access to your full financials.
Does it cost anything, and what happens to my information?
The Exit Score is completely free. Your results are confidential. If you ask us to, and only if you consent, we can refer you to an affiliated investment bank or a vetted M&A partner firm that works with owners in your space. You always control the timeline and can decline at any time.
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