Industry Report: Consumer Residential Services Q4 2025 [Bridgepoint IB]

Key Report Highlights

• Steady Market Growth Driven by Demographics and Outsourcing Trends
  The U.S. residential landscaping market is projected to grow from $48.7 billion in 2025 to $66.7 billion by 2033, supported by a 4.0% CAGR. Homeowners—especially dual-income and aging populations—are increasingly investing in outsourced lawn care and outdoor services to improve aesthetics, convenience, and property value.
• Buyers Prioritize Recurring Revenue and Operational Maturity
  M&A activity is robust, with strategic and private equity buyers targeting platforms that have ≥75% recurring revenue, strong customer retention, and scalable operations. The most attractive companies combine consistent maintenance services with cross-sell potential (e.g., pest control, irrigation, hardscaping) and operational efficiency.
• Sector Consolidation Accelerates with PE-Backed Platforms Leading Deals
  Notable acquirers like SavATree, Davey, Bartlett, BrightView, and Ares-backed Landscape Workshop are driving consolidation. Platforms have executed 50+ add-ons each, signaling an aggressive roll-up strategy. Recent deals include Aphix’s sale to Gauge Capital and CID Capital’s acquisition of GreatHouse Landscape, demonstrating continued sponsor interest in regionally rooted operators.
• Valuation Multiples Support Healthy Exit Opportunities
  Public landscaping and pest control companies are trading at 14.4x EV/EBITDA and 1.8x EV/Revenue (2025E median), indicating strong demand for well-run platforms. Although below 2021 highs, valuations remain above long-term averages, especially for tech-enabled or vertically integrated providers.
• Climate and Sustainability Trends Drive New Service Demand
  As homeowners face increased weather variability and rising temperatures, demand is growing for irrigation systems, drought-resistant landscaping, and environmentally sustainable solutions. This aligns with long-term shifts toward bundled service offerings and further differentiates scalable middle market operators from smaller competitors.

Bridgepoint Investment Banking is a boutique investment bank focused on providing capital raising and M&A advisory services to middle-market companies across North America. Founded in 2012, the firm specializes in sectors including industrials, transportation, healthcare, business services, consumer, and technology.

With over 360 years of combined experience and more than 460 completed transactions totaling over $380 billion, Bridgepoint’s senior team brings deep expertise to every engagement. Headquartered in Omaha with offices in Chicago, Denver, New York, and Lincoln, the firm conducts securities transactions through M&A Securities Group, Inc., member FINRA and SIPC.

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