The LeanScaper Podcast The Blue-Collar Gold Rush: PE’s Big Move into Landscaping w/ Morgan Tate
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Sep 30, 2025 Morgan Tate, an M&A advisor at Breakwater M&A specializing in blue-collar exits, dives into the booming landscaping sector as private equity positions itself for opportunity. He discusses how AI's rise is reshaping investor interests, moving focus to tangible businesses. Tate sheds light on maximizing sale prices and demystifies common pitfalls in business valuation. He emphasizes the importance of operational systems, predictability in cash flow, and a strong client base to boost saleability. Essential insights for landscapers thinking about their future!
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AI Pushed Investors To Real-World Businesses
- AI is shifting investor focus away from software toward real-world businesses like landscaping.
- Investors see IRL operations as more insulated from AI-driven replication and therefore more defensible.
Fragmentation And Recurring Revenue Attract Buyers
- Landscaping is highly fragmented, making roll-up consolidation attractive to private equity.
- Recurring maintenance contracts provide predictable cash flow that investors prize.
Prepare Early To Avoid No-Exit Outcomes
- Avoid having no exit option by preparing your business for sale well before burnout.
- Aim for a clean sale in the 3x EBITDA range or higher by improving saleability not just chasing price.