Tree Service Business Valuation
Tree Service Business Valuation Calculator & Exit Planning Built for Arborists
We built one platform that tracks your tree service company's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Tree Service Owners Have No Idea What Their Business is Actually Worth
Current Tree Service Valuation Multiples (2026)
Tree service valuations depend on commercial accounts, equipment, and crew stability. Here's the current market:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Tree Service Business Value
A busy crew doesn't mean maximum value. Sophisticated buyers look at these factors that determine premium pricing:
Commercial Contracts
40%+ Commercial/Municipal
Municipal contracts, utility line clearance agreements, and property management relationships provide something residential work never can: predictable, recurring revenue. When a city contracts you for median maintenance or a utility company puts you on their approved list, you've got steady income that doesn't depend on the next storm. Buyers understand this stability and pay premium multiples for it.
Residential-only = weather dependent
Equipment Condition
Modern Fleet < 7 Years
Your bucket truck, chipper, and equipment fleet represent a huge investment—and buyers scrutinize every piece. Well-maintained equipment under 7 years old is an asset that supports the purchase price. Old, worn-out equipment gets deducted from offers, sometimes dollar-for-dollar for replacement costs. Keep detailed maintenance records and invest in key equipment before going to market.
Old equipment = buyer discount
Crew Retention
Trained Climbers Retained
Finding and training tree climbers is one of the hardest challenges in this industry. It takes years to develop skilled climbers who work safely and efficiently. When buyers see a stable crew with low turnover—especially experienced climbers who've been with you 3+ years—they see reduced risk and smoother transition. High turnover signals management problems or unsafe conditions that scare buyers away.
High turnover = staffing nightmare
Certifications
ISA Certified Arborists
ISA (International Society of Arboriculture) certifications transform how buyers see your business. Certified arborists can do consulting work, tree preservation, and risk assessments that command premium pricing. Certifications also improve your liability position and enable you to win municipal and corporate contracts that require credentialed professionals. This isn't just a piece of paper—it's a value multiplier.
No certifications = commodity work
Service Mix
Removal + Trimming + PHC
Removal-only tree companies are essentially storm chasers—busy after bad weather, slow otherwise. Smart operators build diversified revenue: regular trimming contracts, plant health care programs (fertilization, pest management), and consulting services. This mix provides year-round income and shows buyers you've built a sustainable business, not just a crew that shows up after hurricanes.
Removal-only = storm chasing
Owner Role
Estimating & Sales
Here's a hard truth: owners still climbing trees are earning wages, not building equity. Yes, you're probably the best climber on your crew. But that skill doesn't transfer to a new owner. What transfers is a business that runs without you in the bucket. Transition to estimating, sales, and crew management. When your crews can handle jobs without you on-site, you've built something a buyer will pay real money for.
Owner climbing = owner wage
How to Value a Tree Service Business
The U.S. tree care industry includes over 100,000 businesses generating approximately $25 billion in annual revenue. Tree service companies provide trimming, removal, stump grinding, emergency storm response, and plant health care services.
Seller's Discretionary Earnings (SDE) is the primary valuation method. Tree service businesses typically sell for 1.5x to 3.0x SDE. Companies at the higher end have ISA-certified arborists, specialized equipment (bucket trucks, cranes, chippers), commercial and municipal contracts, and a strong safety record.
Revenue multiples generally range from 0.20x to 0.45x annual revenue. Companies with utility line clearance contracts and municipal tree care agreements command the upper end.
The unique valuation factor for tree service is the equipment fleet, safety record, and commercial contracts. Tree care equipment represents significant capital investment — bucket trucks, cranes, large chippers, and stump grinders can total hundreds of thousands of dollars. The condition and age of this fleet directly impacts valuation. Safety is paramount in an industry with one of the highest fatality rates in the U.S. — a clean OSHA record and documented safety training program are essential. Utility line clearance contracts and municipal tree maintenance agreements provide the most predictable revenue.
The tree care industry has seen consolidation through companies like Davey Tree, SavATree, and Bartlett Tree Experts. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do tree service businesses sell for?
Most tree service businesses sell for 1.8x – 3.2x SDE. Companies with commercial contracts, certified arborists, and modern equipment command the higher end. Storm chasers with old equipment fall at the lower end.
How do commercial contracts affect tree service value?
Significantly. Municipal contracts, utility clearance agreements, and property management contracts provide predictable, recurring revenue. This stability commands premium multiples compared to residential-only operations.
Does equipment age affect my tree service valuation?
Yes. Buyers assess bucket trucks, chippers, and equipment carefully. Modern, well-maintained equipment is an asset. Old, high-hour equipment gets deducted from offers—sometimes dollar-for-dollar.
How important are ISA certifications?
They signal professionalism and enable higher-margin work like consulting, preservation, and large commercial contracts that require certified arborists. They also improve your liability positioning.
Who buys tree service businesses?
Landscaping companies expanding services, individual buyers seeking outdoor businesses, regional tree care consolidators, and occasionally PE-backed platforms building multi-service outdoor companies.
What's the fastest way to increase my tree service value?
Three high-impact moves: 1) Land commercial or municipal contracts for recurring revenue, 2) Update equipment to reduce average fleet age, 3) Get ISA certifications for your team to unlock higher-margin work.