Why Culture Is the Hidden Value Driver in Landscaping M&A

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When business owners think about landscaping M&A, the conversation usually centers on multiples, margins and market timing. But in service industries like landscaping, there’s a factor that often outweighs the numbers: culture. Deals can look great on paper and still underperform if the people side is ignored. Culture — the way teams communicate, collaborate and serve customers — determines whether an acquisition thrives or becomes another cautionary tale.

Why culture matters

Landscaping, at its core, is a people business. Equipment, contracts and software all play a role, but relationships with employees and clients are what drive long-term success.

Consider this: Studies across service industries show the cost of losing a single frontline employee can equal 30–50% of their annual salary when factoring in recruiting, training and lost productivity. Add in the customer churn that follows high turnover, and suddenly the “cheap” deal isn’t so cheap.

By contrast, when culture is aligned:

• Employees stay. They see opportunity rather than uncertainty.

• Clients stay. They recognize familiar faces, consistent service and renewed energy.

• Founders stay engaged. Their legacy feels respected, not erased.

That stability often makes the difference between hitting growth targets and scrambling to replace lost revenue.

Defining culture in simple terms

Culture can feel like a fuzzy word, but it’s really about how people work together every day. In landscaping companies, culture shows up in things like:

• How crews communicate on the jobsite.

• How managers recognize and support team members.

• How employees talk about the company when they’re off the clock.

• How clients feel when they interact with the brand.

Put simply, culture is what people do when no one is watching. That’s why it’s so critical in landscaping M&A: You can buy trucks, contracts and systems, but you can’t buy trust.

Questions sellers should ask buyers

For owners considering a sale, it’s important to ask questions that get beyond the financials. Here are four to start with:

1. How do you handle leadership after the deal? Will existing leaders remain in place, and how will they be supported?

2. What’s your integration playbook? Is it about cutting costs or strengthening teams?

3. What role do values play? Do you live them daily, or are they just words on a website?

4. How will my people benefit? Are there career pathways, training and support that create upward mobility?

The answers often reveal more about a buyer’s long-term approach than the headline number. A buyer that respects leadership, invests in people and lives by values is more likely to create lasting success.

Advice for buyers

On the buy side, culture is not a “soft” issue — it’s a value driver. A few best practices:

• Lead with listening. Before changing processes, spend time in the field. Hold small-group conversations with crews and staff. Listening first creates trust and uncovers real insights.

• Protect the legacy. A founder’s reputation in the community can be one of the strongest assets acquired. Preserve it. Ignore it and word spreads quickly.

• Integrate values early. Shared values — things like “take care of each other” or “wow the customer” — create common ground across new and existing teams.

• Invest in people. Companies that offer clear career paths and training outperform those that don’t. Gallup reports businesses with highly engaged employees enjoy 23% higher profitability.

Culture can’t be bolted on after the fact. It has to be part of the acquisition strategy from day one.

Lessons from the field

The importance of culture in landscaping M&A becomes clear when you look at real-world outcomes.

In our industry, I’ve seen acquisitions where the deal looked like a sweetheart on paper — strong revenue, healthy margins and an attractive customer base. But culture was overlooked. Within months, key managers left, employees followed, and customer contracts soon trailed behind. The financial model had been right, but the cultural model was wrong.

On the other hand, we’ve also experienced the upside of putting culture first. In one acquisition, the team had an incredible culture and strong work ethic, but lacked scoreboards, leadership and structure.

With support, training and clear metrics in place, that group doubled its top line and grew its bottom line sevenfold in just 24 months. The raw potential was always there — culture made it possible, and the right guidance unlocked the results.

These examples illustrate a broader truth: Financial results may fluctuate, but culture compounds over time.

Common missteps to avoid

For both buyers and sellers, there are traps to watch out for:

• Overvaluing the numbers. Spreadsheets don’t tell you if employees trust management or if clients feel well cared for.

• Rushing integration. Culture takes time. Pushing change too quickly can cause unnecessary turnover.

• Ignoring frontline voices. Crew leaders and account managers often see problems before they show up in financials.

• Failing to align values. If the buyer’s values clash with the seller’s, even a well-structured deal can stall.

Recognizing risks early gives both sides a chance to address them before causing long-term damage.

Steps to building a culture-first company

For owners who aren’t ready to sell yet but want to make their business stronger and more attractive down the road, building a culture-first company is one of the best investments you can make. Here are some simple steps to get started:

1. Define your values clearly. Keep them short, memorable and relevant to everyday work. The best values can be explained on a jobsite, not just in a boardroom.

2. Model the behavior. Leaders have to live the values. If “safety” or “teamwork” is important, employees need to see managers practicing it consistently.

3. Hire and promote by values. Skills can be taught, but attitude and alignment are harder to change. Bring in people who reflect the culture you want to build.

4. Communicate relentlessly. Reinforce values in meetings, recognition programs and even casual conversations. Repetition builds belief.

5. Measure what matters. Scoreboards, employee surveys and customer feedback provide tangible signals of whether the culture is working.

6. Invest in people. Training, clear career paths and recognition systems show employees that culture isn’t just talk — it’s opportunity.

A strong culture doesn’t happen overnight, but taking these steps creates a foundation that attracts talent, retains customers and sustains growth.

Whether you’re a seller thinking about succession or a buyer building a platform, culture isn’t a side issue — it’s the foundation. Numbers may open the door, but culture determines whether the deal delivers lasting value.

For owners: Ask buyers questions about how they’ll treat your people. For buyers: Remember that EBITDA multiples fade, but reputations and relationships endure.

As consolidation continues in the landscaping industry, the companies that win won’t be the ones chasing the biggest multiples. They’ll be the ones that invest in people, protect legacies and make culture the true driver of growth.

Justin Martin is president of Granite Hills Group in North Carolina.