Professionally Managed Landscaping Businesses vs Construction

If you're looking to invest in or scale a professionally managed landscaping business or a project-based construction company, it's critical to understand how they compare — particularly when the owner is off the tools and supported by a team of five or more.

This blog breaks down key differences between these two models, focusing on business structure, scalability, team dynamics, and valuations — all tailored to the Australian SME market.

What Defines a "Professionally Managed" Trade Business?

In this context, we’re referring to businesses where:

The owner works off the tools, managing via systems and a second-tier team leader (e.g., site supervisor or ops manager).

There are 5+ employees including admin or sales support.

The business has some level of process maturity — quoting systems, scheduling software, and basic reporting.

This structure changes everything about how the business operates — and how it’s valued.

Business Model Comparison: Landscaping vs Construction

Feature	Landscaping Business	Construction Business
Type of Work	Garden builds, soft/hard landscaping, paving	Residential builds, renovations, fit-outs
Project Duration	Days to weeks	Weeks to months
Average Job Size	$5k – $50k	$50k – $500k+
Margin Profile	Medium–high, depends on quoting accuracy	High risk, tight margins on fixed-price jobs
Team Roles	Landscapers, site foreman, scheduler/admin	Qualified trades, apprentices, project manager
Compliance Burden	Moderate (OH&S, plant ticketing)	High (licensing, insurances, certifications)
Customer Type	Residential, strata, builders	Developers, builders, homeowners
Working Capital Risk	Moderate (deposits common)	High (progress claims, retentions)

Owner Off the Tools? Here's Why That Matters

When a business reaches the stage where the owner doesn’t wear steel caps daily, it gains:

Higher saleability – buyers prefer businesses with operational independence.

Stronger valuation multiples – because the business isn't "the owner".

More scalability – leadership can focus on marketing, quoting, or expansion.

Valuation Multiples in Practice

Here’s what we typically see in today’s market for professionally managed operations (based on recent SME transactions in Australia):

Business Type	Typical EV/EBITDA Range	Notes
Landscaping (team-led)	2.5x – 3.5x	Higher if government/strata contracts exist
Construction (residential)	2.0x – 3.0x	Tends to be capped unless contract base is deep
Construction (specialised)	3.0x – 4.0x	Must show recurring builder relationships

⚠️ In Australia, 4x EBITDA is not the average — it's the exception.

What Buyers Look For in Manager-Led Trades Businesses

Second-in-command who can run day-to-day without the owner

Clean project data (cost tracking, profitability by job)

Strong pipeline (forward work booked or under contract)

Reliable team (low staff turnover, systems training in place)

Documented quoting and scheduling systems

Final Thoughts: Which Is More Attractive?

Both business types can scale — but landscaping is often:

Easier to systemise,

Lower on compliance,

And faster to cashflow.

Construction has bigger ticket size upside — but also carries:

Higher working capital risk,

Licensing hurdles,

And more legal exposure.

For buyers wanting “hands-off” management and stable ROI, a well-run landscaping business ticks more boxes, more often.