Selling an Irrigation Services Business

Most irrigation service companies sell for roughly 2–5x SDE, and the range depends on what a buyer thinks they can repeat next spring. Tight routes, strong agreement renewals, and low callbacks usually push value up. Heavy HOA revenue can help when contracts separate maintenance from repairs and approvals don’t stall work, but it can drag value down if scope creep creates unpaid labor. For a starting point, try Rejigg’s free valuation calculator, then adjust for seasonality and truck- and equipment-replacement needs.

No. A broker can be helpful if you want someone to run buyer outreach, manage NDAs, and push diligence forward, but many irrigation owners sell without one. Brokers often charge 5–10%, so it’s worth comparing that cost to how much time you can realistically spend during spring and fall rush. Rejigg provides pre-vetted buyers, digital NDAs, messaging, calls, and a data room. To run your own process, start with finding buyers and then follow negotiating a deal.

Often, yes. SBA 7(a) loans can work well for irrigation if your cash flow is well documented, add-backs are reasonable, and the business doesn’t rely on the owner’s personal license to legally perform the work. Lenders usually dig into seasonality (cash timing vs. payroll), customer concentration (especially property managers and HOAs), and fleet condition (near-term capex). To ballpark payments under different assumptions, use Rejigg’s SBA loan calculator and keep lender-ready financials in your data room.

Plan on 3 years of P&Ls, year-end balance sheets, and business tax returns, plus a trailing twelve months (TTM) P&L. Irrigation buyers also commonly ask for monthly revenue to see spring and fall spikes, payroll summaries to understand peak staffing costs, and a fleet and capex list so April doesn’t come with surprise replacements. If you sell service plans, expect requests for plan counts and renewal history. Rejigg’s data room keeps everything organized with permissions so only NDA-signed buyers see sensitive files.

Typical add-backs include owner pay above market, a personal vehicle or phone, one-time legal or accounting bills, and truly non-recurring repairs. Buyers and SBA lenders usually push back on costs that show up every season, like regular overtime, ongoing vehicle repairs, and routine parts shrink. Clean add-backs tend to speed up financing and reduce retrades late in diligence. Rejigg’s checklists in prepare to sell help you list each add-back and attach support.

Many owners go to market in late summer or early fall, after the spring rush proves demand and before winter slows down. Others choose late winter so a buyer can plan the spring ramp with you still available for training and introductions. The right timing depends on your backlog, how predictable your startup schedule is, and whether cash gets tight in shoulder seasons. If you can support a buyer through one spring, that often reduces perceived risk and helps protect price. Rejigg lets you time outreach and diligence around your season.

Many irrigation deals close in about 3–7 months, but it depends on how ready your financials are and how quickly you can answer buyer questions about callbacks, route density, agreements, and seasonality. SBA deals often take longer because lenders need clean documentation and time for underwriting. The fastest processes usually have a clear backlog story and a clear plan for replacing the owner for dispatch and troubleshooting. Rejigg helps by handling vetting, NDAs, a data room, and deal tracking. See due diligence and closing.

Working capital is the cash and near-cash you need to run day to day, such as accounts receivable from property managers, stocked parts, and normal payables to suppliers. It matters in irrigation because spring can be payroll-heavy while payments lag, especially on HOA and commercial terms. Many deals set a working-capital target at closing so the buyer can operate immediately and the seller doesn’t accidentally “leave cash behind.” Rejigg’s deal tools help you compare offers side by side, including working-capital targets and true net proceeds.

In many smaller irrigation transactions, equipment value is reflected in the earnings multiple unless the fleet is unusually valuable or badly deferred. Buyers still scrutinize condition because a truck down in April can choke capacity and create missed startups and angry HOAs. Have a list with make, model, year, miles or hours, and notes on condition and near-term replacements. Photos and maintenance records help a lot. Rejigg’s data room makes it easy to share an organized equipment schedule without chasing email attachments.

Most main-street irrigation deals are asset sales. The buyer purchases equipment, inventory, phone number, website, customer relationships, and goodwill, and the seller keeps most unknown liabilities. Stock sales happen sometimes, usually when there are contracts, permits, or licenses that are hard to transfer, but they take more legal and tax work. Your CPA should review tax impact, and your attorney should handle assignments or novations for HOA and municipal agreements. Rejigg’s negotiation guide covers common tradeoffs.

Buyers often ask for a non-compete, commonly 3–5 years, plus a non-solicit of customers and employees. In irrigation, routes are local and relationships with HOAs and property managers matter, so buyers want protection against the seller restarting down the street. What’s enforceable varies a lot by state, so it’s worth getting legal advice early. Rejigg helps on the confidentiality side by using pre-vetted buyers and digital NDAs before you share customer-sensitive materials.

They show up sometimes, especially when revenue is seasonal and a buyer worries about renewals, HOA rebids, or spring volume after the owner steps back. If you consider an earnout, the details matter: pick metrics that are hard to game, like revenue from a defined customer list or billed startups and winterizations, and require clear reporting and dispute rules. Earnouts can work, but they add ongoing friction and risk. Rejigg’s offer tools help you compare earnouts against more cash at close, seller notes, and timing risk.

Many buyers ask for 30–90 days, but transitions often go longer in irrigation because spring is when scheduling pressure and troubleshooting spike. If you can support one spring ramp, buyers usually feel better about retention and quality control. Spell out the work: introductions to property managers and HOA boards, training on controller standards, dispatch rules, and how you’ll handle escalations. Define a taper so you’re not “on call forever.” Rejigg’s transition planning guide helps you put it in writing.

This varies by state and by customer mix, so buyers mainly want clarity and proof. Expect questions about what license is required to perform irrigation work, whether the license is tied to a person, and what happens if that person leaves. HOAs and municipalities often have specific insurance requirements, such as GL (General Liability) and auto limits and additional insured wording. If you do backflow-related work, there may be extra certifications and reporting. Keep copies of licenses and COIs (Certificates of Insurance) in Rejigg’s data room so diligence doesn’t stall.

Customer lists, HOA contracts, and technician rosters are sensitive, and leaks can cause real damage. A staged approach is usually safest: share a high-level overview first, then release customer names, contracts, and route details only after a buyer is vetted and signs an NDA. You can also hold back exact community names until later rounds and share concentration by percentage early on. Rejigg supports staged disclosure with pre-vetted buyers, digital NDAs, and document permissions so sensitive files aren’t floating around email inboxes.

Tax outcomes depend on your entity type (S-corp, LLC, C-corp), the deal structure (asset vs. stock), and how the price is allocated across equipment, inventory, and goodwill. Irrigation companies often have meaningful depreciated assets, like trucks and specialty equipment, so depreciation recapture can change the math. It’s worth involving a CPA early so you know what allocations help or hurt you before you negotiate. Rejigg’s deal tracking helps you compare offers with different allocations by net proceeds, not just headline price.

Many irrigation businesses run out of an owner-owned yard or shop, and buyers are often fine leasing it. Some even prefer leasing so they don’t have to finance real estate along with the business. The key is continuity: secure parking for trucks and trailers, parts storage, and a workable dispatch setup during peak season. If you sell the real estate too, expect a longer timeline and different financing. Rejigg lets you present both options and compare offers that include a lease versus a purchase.

Start with 3 years of financials and tax returns, a TTM P&L, and monthly revenue so buyers can see spring and fall spikes. Add a customer mix breakdown (HOA vs. residential), service plan templates and renewal history if you have them, insurance and licensing docs, and an equipment list with condition notes. Buyers also like operational proof: your callback definition, checklists for programming and wiring standards, a simple org chart, and a seasonality and dispatch playbook. Rejigg includes a built-in data room and a checklist in prepare to sell your business.