How much does a Tree Service Business cost to buy?

A typical Tree Service Business sells for 1.5x to 3x seller's discretionary earnings. With estimated SDE of $113K, expect to pay roughly $169K to $338K before adjustments for assets, debt, growth, and local market quality.

How much does it cost to start a Tree Service Business?

Startup costs range from $20K to $150K depending on location, equipment, and scale.

Service

Tree Service Business

Q: What are the profit margins for a Tree Service Business?

The average profit margin for a Tree Service Business is around 25%. Key costs are crew wages (largest), equipment financing and maintenance, insurance (very high — $20K-$50K/yr), fuel, and dump fees for debris. Margins expand significantly with owned equipment versus rented.

Storm season is their best season — nature funds your payroll

Bottom line

Worth studying, but do not buy without strong local proof.

Tree service companies remove, trim, and care for trees for residential and commercial clients. One emergency storm removal can gross $2,000-$6,000 in a single call. A 3-person crew running 3-4 jobs a day generates staggering revenue — most people dramatically underestimate how fast tree money accumulates. The U.S. tree services market is worth $29 billion and growing.

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Acquisition score

Excellent

Avg Revenue

$450K

Profit Margin

25%

Acquisition Multiple

1.5x - 3x

Startup Cost

$20K - $150K

How It Works

Customers book tree removal, trimming, stump grinding, or emergency storm cleanup. An ISA-certified arborist provides estimates; crews perform the work with chainsaws, chippers, and aerial lifts. Emergency work during storms commands 50-100% premium pricing. Revenue scales rapidly by adding crews and chippers.

Revenue Range

Low End

$150K

Typical

$450K

High End

$1.2M

BizBite underwriting snapshot

Watch / verify

Tree Service Business 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.

Speculative / 100

Data confidence

medium

52/100

Financing fit

medium

Category-level fit before lender-specific diligence.

Confidence cap

Weak source data caps the final score.

Why it may work

+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
!No category model yet

Real Acquisitions in This Category

SBA 7(a) 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

$150K–500K

176

$500K–1M

127

$1M–2M

116

>$2M

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

of loans secured

Median jobs

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

Closed	State	Loan	Implied deal	Jobs	Franchise
Mar 2026	NY	$135K	$159K	2	—
Mar 2026	NJ	$150K	$177K	6	Monster Tree Service
Mar 2026	NJ	$1.4M	$1.6M	6	Monster Tree Service
Mar 2026	CA	$333K	$392K	4	—
Mar 2026	MN	$83K	$97K	1	—
Mar 2026	IL	$1.2M	$1.4M	6	—
Mar 2026	MA	$100K	$118K	10	—
Mar 2026	FL	$1.2M	$1.4M	16	—
Feb 2026	SC	$480K	$565K	11	—
Feb 2026	IN	$990K	$1.2M	11	—

Volume rank #10/544Deal-size rank #366/544Momentum rank #298p90 loan: $2.0MData 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.

Pros

+One storm can generate $10K-$50K in a single week
+Average job ticket is $1,200-$3,000 — revenue adds up fast
+Recurring trimming work from residential contracts
+Stump grinding and lot clearing provide ancillary revenue

Cons

-Extremely high-risk work — insurance is expensive
-Equipment (chippers, lifts) costs $50K-$200K+
-ISA certification adds credibility but requires training

Best For

Operators comfortable with physical crews and high-ticket project work

Operating Costs

Key costs are crew wages (largest), equipment financing and maintenance, insurance (very high — $20K-$50K/yr), fuel, and dump fees for debris. Margins expand significantly with owned equipment versus rented.

SBA Financing Estimator

Adjust the deal — see if it cash flows after debt service

+$2K/mo

after debt service

Deal price — $630K

Range: $450K (1.5×) to $1.8M (3×+)

Down payment — 15% ($95K)

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 (120 mo)

SBA median for this category: 120 months

Down payment

$95K

15% equity injection

Loan amount

$536K

85% SBA-financed

Monthly payment

$7K/mo

$305K total interest

Monthly profit

$9K/mo

at 25% margin

Monthly cash flow after debt service

+$2K/mo

Down payment paid back in ~40 months

Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.