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BIZBITE

Stump Grinding

Turn dead wood into cash — one stump at a time

Bottom line

Strong cash-flow candidate with manageable operations.

Stump grinding is a specialized outdoor service that removes tree stumps left after trees are cut down. A single grinder mounted on a trailer is all you need to earn $100–$150/hour. Tree service companies frequently subcontract stump removal, creating a built-in referral network from day one. With a used grinder costing as little as $6K, few legitimate service businesses start this lean.

Acquisition score
Margin · multiple · SBA data
84Excellent
Avg revenue
$175K/yr
$80K–$400K range
Profit margin
40%
~$70K SDE
Multiple
1.5–2.5×
of SDE
Est. buy price
$105K–$175K
startup: $6K–$50K

How It Works

A rotating drum with carbide teeth chews through stumps below ground level. Jobs typically take 15–60 minutes and average $200–$350 per stump. Operators charge by stump count, diameter, or hourly rate. Tree services refer stump work they don't want to handle, while direct homeowner calls come from Google and Nextdoor.

BizBite verdict

Contact broker

Stump Grinding has enough high-level data for a first look, but BizBite has not assigned a category-specific operating model yet. Treat the score as preliminary.

84Excellent
medium data confidence · 52/100medium financing fit

Why it may work

  • +Attractive 40% estimated margin profile
  • +SBA dataset shows 212 recent comparable loans

Be careful

  • !Source link status has not been verified yet
  • !No last-checked date yet
  • !No category operating model yet

SBA 7(a) data

Real acquisitions in this category

Change-of-ownership loans · NAICS 561730 · Landscaping Services

Deals tracked
577
212 in last 24 mo
Median loan
$531K
$236K–$1.2M p25–p75
Implied deal size
$625K
median · ~85% LTV
Charge-off rate
not enough resolved loans

Deal size distribution

<$150K
99
$150K–500K
176
$500K–1M
127
$1M–2M
116
>$2M
59

Deal flow over time

12-month momentum
−39.4%
deal volume vs prior 12 mo
Median loan Δ
+61.0%
80 recent · 132 prior

Financing profile

Median rate
9.75%
15% fixed · last 24 mo
Median term
120 mo
standard 10-yr
Collateralized
0%
of loans secured
Median jobs
11
supported per deal
Top lenders in this space
The Huntington National Bank64
Live Oak Banking Company23
First Internet Bank of Indiana13
BayFirst National Bank12
Beacon Bank and Trust12
Where deals happen
FL83
PA30
TX30
MI27
CO26
MN26
CA24
UT21
OH19
AZ18

Recent comparable deals

ClosedStateLoanImplied deal
Mar 2026NY$135K$159K
Mar 2026NJ$150K$177K
Mar 2026NJ$1.4M$1.6M
Mar 2026CA$333K$392K
Mar 2026MN$83K$97K
Mar 2026IL$1.2M$1.4M
Mar 2026MA$100K$118K
Mar 2026FL$1.2M$1.4M
Feb 2026SC$480K$565K
Feb 2026IN$990K$1.2M
Volume rank #10/544Deal-size rank #366/544Momentum rank #298p90 loan: $2MData as of Mar 2026

Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.

Deal Calculator

Priced off $70K SDE — can this deal service its own debt?

3.54×
DSCR · Lender-comfortable
Purchase multiple — 2.0× SDE ($140K)
Category range: 1.5×–2.5× SDE
Down payment — 10% ($14K)
SBA minimum equity injection is 10% for change-of-ownership
Interest rate — 9.75%
SBA median for this category: 9.8%
Loan term — 10 years
SBA median for this category: 120 months
Purchase price
$140K
2.0× of $70K SDE
Cash to close
$18K
$14K down + ~3% closing
Debt service
$2K/mo
$20K/yr on $126K loan
Cash-on-cash
276%
cash back in ~5 mo
Debt service coverage · what the lender sees
3.54×+$4K/mo after debt
Most SBA lenders want ≥1.25× coverage; 1.5×+ is a strong file.

SDE = revenue × margin estimate for this niche; it includes owner compensation, so budget your salary out of cash flow. Excludes working-capital injection, capex reserves, and taxes. Actual SBA terms vary by lender and borrower.

Pros

  • +Very low startup cost — used grinder and trailer under $10K
  • +Tree companies subcontract this constantly, so leads appear from day one
  • +30–50% profit margins on low overhead
  • +No license required in most states — just insurance
  • +One person can run 6–10 jobs per day once efficient

Cons

  • -Highly seasonal in cold climates — winter can be near-zero
  • -Physically demanding — equipment is loud and dusty
  • -Equipment maintenance is regular and critical
  • -Geographic range limited by drive time between jobs

Best For

Outdoorsy entrepreneurs wanting a lean, low-overhead service business; also great as an add-on to tree service or landscaping operations

Operating Costs

Major costs: equipment loan/depreciation (15%), fuel (8–10%), blade/carbide replacements (5%), liability insurance ($3K–$5K/year), marketing (5–10%). A solo operator running 3 jobs/week at $275 average generates ~$43K in year one; scaling to 5–6 days/week with multiple crews can reach $300K–$400K revenue.

Where to Buy

BizBuySell - Tree Service Businesses

Find stump grinding and tree service businesses for sale across the US

Craigslist / Facebook Marketplace

Used stump grinders and small operators often listed locally

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Real operator stories and advice from stump grinding business owners

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