Landscaping Business Buyer Checklist (Australia)

The Complete Landscaping Business Buyer Checklist

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Phase 1: First Look (Before You Sign an NDA)

These are the questions you can ask a broker or seller in an initial conversation — before you've committed to any process.

• What percentage of revenue is regular maintenance vs project work?
• How long has the business been operating?
• Is the owner a licensed contractor or just a manager? (Matters for licence transfers.)
• How many full-time crew members are there, and how long have most of them been with the business?
• Does the business have any commercial or council contracts, and when do they expire?
• Has the business been listed before? If so, why didn't it sell?
• What is the current asking price, and is it based on SDE or EBITDA?
• Is the owner willing to stay on for a handover period? How long?

First-look red flags to note:

• Owner unwilling to answer questions about revenue type before NDA is signed (evasion, not confidentiality)
• Business has been listed for more than 6 months without explanation
• Asking price appears to assume project revenue at maintenance multiples

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Phase 2: Financial Verification

Once you've signed a confidentiality agreement and received the information memorandum, request:

Financial statements:

• Three years of profit and loss statements (ask for management accounts if tax returns aren't ready)
• Three years of BAS lodgements — cross-reference against P&L revenue figures
• Bank statements for the last 12 months — check that deposits match reported revenue
• Current aged debtors report — how quickly are clients paying?
• List of all add-backs the seller is claiming, with supporting documentation for each

Revenue quality:

• Revenue broken down by client, by month, for the last 24 months — are there seasonal troughs that aren't reflected in the "annual" figure?
• Revenue split: recurring maintenance vs project work vs other (equipment hire, materials on-sell, etc.)
• Top 10 clients by revenue — what percentage of total revenue do they represent?
• Client tenure: how long have the top clients been with the business?
• Any clients who have left in the last 12 months, and why

Cost structure:

• Labour costs as a percentage of revenue — benchmark is 40-55% for a well-run landscaping business
• Fuel and vehicle costs — check against fleet size and job geography
• Equipment maintenance costs — are they suspiciously low? (Deferred maintenance shows up in equipment condition, not the P&L)
• Subcontractor usage — is there specialist work being outsourced that you'd need to retain after purchase?
• Owner's salary and any personal expenses run through the business

Working capital:

• Typical debtor days — commercial clients often run at 30-60 days
• Any outstanding disputed invoices
• Supplier payment terms and any overdue payables
• Stock on hand (materials, chemicals, consumables) — is it included in the sale price?

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Phase 3: Operations and Equipment

Plant and equipment:

• Full asset list with age, condition, and current book value for each item
• Mowers — age, hours, last service date, manufacturer warranty status
• Trucks and trailers — registration status, odometer, any outstanding defect notices
• Irrigation and drainage equipment — any specialised tools tied to specific client sites?
• Chainsaws, hedge trimmers, blowers — check compliance with AS 2727 for operator safety
• Chemical storage — is the business compliant with state EPA requirements for pesticide and herbicide storage?
• Any leased equipment — what are the terms and what happens to the lease on sale?

Software and systems:

• What job management software does the business use (ServiceM8, Tradify, AroFlo, etc.)?
• Are jobs, clients, and scheduling documented in the software, or in someone's head?
• Are there documented SOPs for recurring maintenance runs?
• How are quotes generated — templated or ad hoc?

Geographic footprint:

• Map the service area — is it tightly clustered or scattered across a large region?
• Are there any jobs that are far outside the core service zone? (These are often the low-margin ones.)
• Does the business use route optimisation, or do crews plan their own days?

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Phase 4: Staff, Licences, and Compliance

Staff:

• Full list of employees — role, tenure, employment type (full-time, part-time, casual, subcontractor)
• Which staff are aware the business is for sale? (Usually none, and that's fine — but confirm)
• Are there any key crew leaders who would be difficult to replace if they left after handover?
• Confirm all employees are on current Awards — check against the Horticultural Award 2020 or relevant state equivalent
• Outstanding leave entitlements — annual leave, long service leave — check how these will be handled at settlement
• Any current or pending WorkCover claims

Licences and certifications:

• Contractor's licence — who holds it, and is it transferable or will a new licence be required?
• Pesticide applicator's licence — who holds it? (This is state-specific: EPA Vic, NSW EPA, etc.)
• Chainsaw operator certificates (AQF-aligned units of competency)
• First aid certificates current for at least one crew member per team
• Any council-specific requirements for working in public spaces (traffic management, working near trees, etc.)
• Is the business registered for any state trade licence that has ongoing CPD requirements?

WHS and compliance:

• WHS management plan — does one exist, and when was it last updated?
• Safe Work Method Statements (SWMS) for high-risk activities (working near powerlines, elevated work, etc.)
• Incident and near-miss register for the last three years
• Any SafeWork/WorkSafe investigations or enforceable undertakings

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Phase 5: Clients and Contracts

This is where most landscaping acquisitions succeed or fail. The financial story can look solid right up until you discover the top client accounts for 40% of revenue and has a verbal-only arrangement with the current owner.

Client review:

• Full client list with revenue per client per year for the last two years
• For each of the top 10 clients: contract type (written vs verbal), contract length, renewal date
• Client concentration — is any single client more than 20% of revenue?
• Are any contracts with the current owner personally, rather than the business entity?
• Have any clients indicated they may not continue after a change of ownership?
• Introduction plan — how will the seller introduce you to key clients before settlement?

Commercial and council contracts:

• Obtain copies of all written contracts — check for change-of-ownership clauses that may allow the client to terminate
• Check contract renewal dates — are any major contracts up for re-tender within 12 months of settlement?
• Confirm the tender category and any prequalification requirements (e.g., council contractor panels often require minimum insurances and WHS certifications)

Residential client base:

• Are residential clients on written service agreements or ad hoc arrangements?
• Average client tenure — clients who have been with the business for 3-plus years are more likely to stay through a change of ownership
• Any recent client losses, and what drove them?

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Phase 6: Pre-Offer Assessment

Before you put a price in writing:

• Walk a full maintenance day with a crew — not a stage-managed tour, an actual working day
• Talk to at least one commercial client (with seller's permission) — does the relationship feel transferable?
• Get independent quotes on the condition of the top three pieces of equipment
• Check PPSR (Personal Property Securities Register) for any security interests registered against the business's equipment
• Confirm the ABN and business name on ASIC/ABR — are there any related entities you haven't seen financials for?
• Speak with the business's accountant directly (the seller should arrange this if they're serious about selling)
• Run a basic search on the seller at the relevant state court registry — any judgments or outstanding disputes?

Settlement structure considerations:

• If any client concentration risk exists, consider negotiating a retention amount held in escrow pending client retention post-settlement
• If equipment condition is a concern, negotiate a price adjustment or price the risk into your offer
• If key staff are critical, consider making settlement conditional on key employee agreements being executed
• Standard landscaping business settlement is 30-60 days — factor in time needed to obtain a contractor's licence in your name if required

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Related resources:

• Landscaping Business Valuation Checklist — for EBITDA normalisation and multiple calculation
• Comprehensive Due Diligence Checklist — the full cross-industry framework
• How to find a landscaping business for sale in Australia — sourcing channels and what to look for before you start due diligence
• Due diligence when buying a small business in Australia — the broader process context

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