Common seller tricks in tree service
The write-up may call the business a ‘crew’ when it is really one climber, and may treat a storm or utility contract as ordinary residential work.
- The owner as the only climber or the only crane operator, with ‘absentee’ language in the listing.
- A storm, ice, or hurricane year used as the baseline for SDE.
- A utility or municipal contract that is out to bid, or not clearly assignable.
- Insurance history that does not match the work (crane, near conductors, large removals).
- A chipper or crane with a tired engine and a long lead time to replace.
Which numbers to verify
Split residential, commercial, and storm or utility work. Compare a storm year with the years beside it. Reconcile deposits. Look at payroll versus 1099 climbers and at workers’ comp history. Recast the owner’s climbing, sales, and crane days. Disposal or chip-dump fees should be complete.
Licensing and key-person risk
ISA credentials, state contractor licenses, and — for work near power lines — utility qualifications can be the gate. Insurance limits and the loss run are as important as the license. A policy that lapses or a claim that resets the experience modifier can wipe out the profit you thought you bought.
Equipment and condition
Cranes, bucket trucks, chippers, and grinders are the company. Get hours, inspection certificates, and a mechanic’s view, not just photos. A crane that is out of certification is not an asset. Ask about upcoming mandated inspections and the dump site for chips.
Seasonality and the calendar
Leaf-on and leaf-off, nesting seasons, and municipal restrictions change the work mix. Storms are a bonus and a trap. A quiet year after a hurricane is not a failure of the crew; it is the cycle. Plan cash accordingly, especially if you close just after a storm boom.
Customer concentration
A utility contract, a city, or a large campus can be a huge share of revenue and of risk. Those contracts rebid and often require qualifications a new owner has to prove again. Residential work is more scattered but follows reviews and the person who walks the job — often the seller.
Questions to ask before you make an offer
- Please split revenue into residential, commercial, utility, and storm work for five years, including the last major weather event.
- Who climbs, who runs the crane, and what happens if the owner or that person leaves?
- May I see insurance limits, loss runs, and the current workers’ comp modifier?
- Which municipal or utility contracts are in place, when do they rebid, and are they assignable?
- May I inspect the crane, chippers, and bucket trucks, including certifications and hours?
- How is debris disposed of, and at what cost?
- What share of labor is W-2 versus 1099, and have there been injuries or claims?
- How many estimates does the owner still walk in a typical week?
- Are there unfinished jobs or property-damage disputes?
- After an LOI, may I speak with your accountant and a lead climber or operator?