The green industry explosion

Q: It seems like I'm hearing about mergers and acquisitions more than ever. How have things changed in the last 20 years? How can I best position my business for a transition? 

A: In previous years, only select companies such as Valley Crest, Brickman, SiteOne, or TruGreen might complete a single acquisition annually. Today, however, the growth of private equity investments has resulted in acquisitions occurring on a weekly basis, and operators are frequently approached with offers to sell. There is growing discussion within the industry regarding whether this period of heightened activity will continue.

Landscape services and outdoor products supply, or the “Green Industry,” have undergone a dramatic transformation in its mergers and acquisitions (M&A) activity over the past two decades shifting from fragmented, local and small regional players to a more consolidated, private equity fueled ecosystem. 

Private equity (PE) has reshaped the commercial and residential services space especially in landscaping, turf care, tree care, irrigation, lighting and outdoor living products through aggressive consolidation, operational optimization, and strategic scaling. 

Here’s a breakdown of timelines and how these sectors have evolved under PE ownership:

Early 2000s–2010: Fragmented foundations

• Local dominance: The industry was highly fragmented, dominated by small, family-owned businesses with strong local ties.
• Limited M&A activity: Acquisitions were rare and mostly opportunistic driven by family succession planning or geographic expansion.
• Low institutional interest: Private equity largely overlooked the sector due to lower EBITDA dollars, the industry’s seasonal nature, labor intensity, and the perceived lack of scalability.

2010–2020: Emergence of private equity

• Rise of platform companies: Firms like BrightView, TrueGreen, SiteOne, SavaTree, Rollins, Fairway Lawns and Yellowstone Landscape began acquiring smaller operators to build regional or national footprints.
• Private equity entry: PE firms recognized the Green Industry’s recurring revenue potential and began backing scaling up strategies after KKR acquired and merged Valley Crest and Brickman to create Brightview.
• Service line expansion: Acquirers sought companies offering complementary services such as turf care, irrigation, snow removal, and tree care to create complimentary or specialty offerings.

2020–Present: Peak consolidation & strategic accelerated growth

• Aggressive valuations & buyouts: Well-capitalized buyers have accelerated acquisitions, especially in commercial landscaping and specialty residential services across all markets.
• Geographic targeting: Acquirers focus on high-growth regions (e.g., Southeast, Southwest, Midwest) and urban markets with dense growing populations.
• Platform optimization: Private Equity backed companies are building long-term, technology backed platforms emphasizing automation, AI, digital marketing and aggressive employee recruiting.

Despite some economic headwinds, rising interest rates, geopolitical instability, and uneven public markets, PE continues to raise and deploy capital aggressively. The resilience isn’t accidental; it’s driven by structural shifts, strategic adaptation, and investor confidence. I suggest we are far from any slowdown in activity. Many PE-backed firms are now entering second or third recap cycles, with larger players commanding higher EBITDA multiples and 3x-6x returns on invested capital (MOIC) being realized. Recent deals challenge traditional valuation logic, as PE is acquiring smaller EBITDA businesses (< $2.0 million in EBITDA) and still scaling to $25 million in EBITDA or more. 

Here are the key VALUE CREATION principles every operator should consider.

Be a buyer - market fragmentation

• Highly fragmented industry: Commercial and Residential landscaping services remain dominated by small and mid-sized firms. Acquisitions have increased significantly, with local operators now competing alongside private equity firms to obtain complementary services such as turf, irrigation, and lighting. These activities reflect strategic efforts to drive growth for both employees and customers. Growing a business slowly over decades before selling is uncommon; today, young and experienced operators scale quickly through deals.

Dial in operations &  performance optimization

• Standardization of services: PE-backed firms often introduce Dashboards, SOPs, AI systems, and digital marketing to go alongside software like Aspire or Real Green to streamline operations and reduce inefficiencies. Investment in smart irrigation systems like Weathermatic, or LED lighting, and automation of turf solutions has accelerated under PE ownership, aligning with scalability trends. We have seen margin expansion in EBITDA go to 15%-25% as PE firms capitalize on this by focusing on premium service tiers and upselling bundled or enhancement offerings.

Mandatory compliance

• Ensuring compliance with employment practices, including I-9 forms and H-2B visas, is crucial under our current administration and its immigration policies. Adhering to these regulations not only helps avoid legal penalties but also fosters a fair and transparent work environment. By prioritizing compliance, companies must build a reputable and sustainable business model that supports both their workforce and their growth objectives if they hope to transact in the future.

Resilience & growth drivers

• Recurring revenue and essential services are the most valuable and resilient. The integration of data-driven decision-making, advanced analytics, and cross-market synergies is allowing companies to anticipate evolving customer needs and respond rapidly to shifts in consumer demand. Strategic partnerships and mergers are fostering greater service diversity and geographic reach, while proactive talent acquisition is strengthening the sustainability of growth. These advancements are not only driving performance optimization but also positioning firms to navigate regulatory complexities and workforce challenges with agility. By remaining adaptive and forward-looking, industry leaders are laying the foundation for scalable platforms that seamlessly incorporate compliance and efficiency, ensuring that their trajectory aligns with both market and workforce expectations for long-term success.

What’s next

In conclusion, the green industry continues to thrive and attract private equity investments due to its resilience, recurring revenue models, and strategic consolidation opportunities. The adoption of technology and operational optimizations further enhances the industry's appeal, making it a lucrative sector for investors. As private equity firms continue to deploy capital and drive growth, the green industry is poised for sustained success and innovation. The future looks promising, with ample opportunities for expansion and value creation.

Looking ahead, momentum will depend on operators’ willingness to embrace emerging technologies and compete with larger competitors. Despite abundant capital deployment, gaps in integration and culture are emerging. Regardless of ownership tables and capital resources, the best performing companies will be those led by the best leadership teams. Patrick Lencioni says it best: “Not finance, not strategy, not technology. It's teamwork that remains the ultimate competitive advantage, both because it is so powerful and so rare.” 

Let’s go!

About the author

Jeff’s broad industry knowledge, extensive network of relationships, and sharp business insight have made him a featured speaker at numerous national and state trade associations, industry software companies, and executive leadership conferences. 

Jeff is a big sports fan, loves to travel, golf, and enjoys spending time with his wife Tracy and sons Benton and Landon.