BUSINESS VALUATION REPORT Business: Crestwood Landscape & Design Industry: Landscaping & Outdoor Services Purpose: Sale Currency: United States Dollar (USD) Valuation Date: June 03, 2026 Basis: Debt-Free Cash-Free unless stated otherwise Note: This valuation reflects the financial position as of the date above and is subject to change based on market conditions and business performance. CONFIDENTIAL — This report is intended solely for the named business and authorised recipients only. ════════════════════════════════════ ───────────────────────────────────────────────────── KEY FIGURES SNAPSHOT ───────────────────────────────────────────────────── Annual Revenue ..................... $1,240,000.00 Net Profit before Tax & Interest ... $186,000.00 Net Profit Margin .................. 15.00% EBITDA ............................. $238,500.00 Total Assets ....................... $430,000.00 Total Liabilities .................. $148,000.00 Net Asset Value .................... $282,000.00 ───────────────────────────────────────────────────── VALUATION SUMMARY ───────────────────────────────────────────────────── Method 1 — Asset-Based Value ....... $282,000.00 Method 2 — Revenue Multiple Value .. $1,116,000.00 Method 3 — EBITDA Multiple Value ... $1,073,250.00 ───────────────────────────────────────────────────── Weighted Valuation ................. $1,007,475.00 Conservative Estimate .............. $800,000.00 Optimistic Estimate ................ $1,250,000.00 Midpoint Valuation ................. $1,025,000.00 ───────────────────────────────────────────────────── EXECUTIVE SUMMARY ───────────────────────────────────────────────────── Based on three standard valuation methods, Crestwood Landscape & Design is estimated to be worth between $800,000.00 and $1,250,000.00, with a weighted valuation of approximately $1,007,475.00 and a recommended midpoint asking price of $1,025,000.00. The Revenue Multiple method produced the highest individual valuation at $1,116,000.00, while the Asset-Based method produced the lowest at $282,000.00, a figure that significantly understates the true business value as it does not capture the brand strength, recurring contracts, and intangible goodwill that represent the most commercially valuable elements of this enterprise. As this valuation is prepared for the purpose of a sale, these figures should be used to establish the asking price range in sale negotiations, with the weighted and midpoint figures providing the most defensible position against buyer due diligence. ───────────────────────────────────────────────────── 2. BUSINESS OVERVIEW ───────────────────────────────────────────────────── Crestwood Landscape & Design is an established landscaping and outdoor services company operating for eleven years in the greater Denver metropolitan area, employing 14 full-time staff and 6 seasonal workers with annual revenue of $1,240,000.00. The business holds a differentiated competitive position through a certified landscape architecture team and a proprietary irrigation efficiency system, supported by a stable client base where 60% of revenue is derived from recurring commercial contracts with office parks, homeowner associations, and municipal clients. ───────────────────────────────────────────────────── 3. MARKET CONTEXT ───────────────────────────────────────────────────── The landscaping and outdoor services sector in the United States has experienced consistent demand growth over the past several years, driven by commercial property maintenance requirements, municipal green space investment, and sustained residential construction activity across Sun Belt and high-growth metro areas including Denver. Labour cost pressures, fuel inflation, and equipment cost increases have compressed margins across the sector, which has resulted in increased consolidation activity as larger regional operators and private equity-backed platforms acquire established independent operators to achieve economies of scale. Environmental and water efficiency services, precisely the area where Crestwood holds a licensed competitive advantage, are among the fastest-growing subsectors and command premium valuations from strategic acquirers. Industry Valuation Range: Landscaping and outdoor services businesses of this size and profile typically sell for 0.7x to 1.2x annual revenue or 4x to 5.5x EBITDA, with the upper end of both ranges reserved for businesses with strong recurring revenue bases and documented growth trajectories. Market Conditions: Neutral to seller-favourable. The combination of consolidation-driven demand from strategic acquirers and the scarcity of well-run independent operators with recurring commercial contract bases creates a moderately seller-favourable environment, though buyer scrutiny of labour dependency and margin sustainability is elevated. ───────────────────────────────────────────────────── 4. METHOD 1 — ASSET-BASED VALUATION ───────────────────────────────────────────────────── Total Assets: $430,000.00 Total Liabilities: $148,000.00 Formula: Total Assets - Total Liabilities Net Asset Value: $430,000.00 - $148,000.00 = $282,000.00 Goodwill Estimate: Formula: Higher Multiple Value - Net Asset Value Higher Multiple Value: $1,116,000.00 (Revenue Multiple) Goodwill: $1,116,000.00 - $282,000.00 = $834,000.00 Goodwill Note: This $834,000.00 goodwill figure represents the premium value attributable to Crestwood's eleven-year regional brand presence, its 60% recurring commercial contract base, its certified architecture team, and the proprietary irrigation efficiency system that collectively generate earnings well above what the physical assets alone could produce. Adjustment Note: The asset-based value of $282,000.00 materially understates the true business value for a services-led operation of this type, as the majority of commercial worth resides in customer relationships, brand equity, and recurring revenue streams that are not reflected on the balance sheet. ───────────────────────────────────────────────────── 5. METHOD 2 — REVENUE MULTIPLE VALUATION ───────────────────────────────────────────────────── Annual Revenue: $1,240,000.00 Industry Revenue Multiple Range: 0.7x to 1.2x annual revenue Selected Multiple: 0.90x Selection Justification: A multiple of 0.90x is selected above the mid-point of the range to reflect the business's consistent 9% annual revenue growth over four years, its well-diversified commercial and residential client base, and the above-average revenue predictability provided by recurring commercial contracts, while remaining below the ceiling given the identified labour availability and input cost risks. Formula: $1,240,000.00 x 0.90 Revenue Multiple Value: $1,116,000.00 ───────────────────────────────────────────────────── 6. METHOD 3 — EBITDA MULTIPLE VALUATION ───────────────────────────────────────────────────── Net Profit before Tax and Interest: $186,000.00 Add back Depreciation & Amortisation: $34,000.00 Add back Interest: $18,500.00 Formula: Net Profit + Depreciation + Amortisation + Interest EBITDA: $186,000.00 + $34,000.00 + $18,500.00 = $238,500.00 Industry EBITDA Multiple Range: 4.0x to 5.5x EBITDA Selected Multiple: 4.5x Selection Justification: A multiple of 4.5x is selected within the lower-to-mid range to reflect the strong EBITDA base and recurring revenue stability while applying a modest discount for the identified peak-season labour dependency and the potential margin pressure from rising fuel and equipment costs that represent the business's primary financial risk. Formula: $238,500.00 x 4.5 EBITDA Multiple Value: $1,073,250.00 ───────────────────────────────────────────────────── 7. TRIANGULATED VALUATION RANGE ───────────────────────────────────────────────────── For a sale purpose, the EBITDA Multiple method carries the greatest weight as it most directly reflects the earnings capacity a buyer is acquiring. The Revenue Multiple provides secondary support, and the Asset-Based method carries the least weight as it understates intangible value for a services business. Weighting Applied: Method 1 — Asset-Based ............. 10% Method 2 — Revenue Multiple ........ 30% Method 3 — EBITDA Multiple ......... 60% Weighted Valuation Formula: ($282,000 x 0.10) + ($1,116,000 x 0.30) + ($1,073,250 x 0.60) = Weighted Value $28,200 + $334,800 + $643,950 = $1,006,950.00 Weighted Valuation: $1,006,950.00 (rounded to $1,007,000.00 for reporting) Conservative Estimate: $800,000.00 Optimistic Estimate: $1,250,000.00 Recommended Asking Price: $1,100,000.00. An asking price of $1,100,000.00 is recommended as it sits above the weighted valuation and near the upper bound of the EBITDA multiple range, reflecting the business's recurring commercial contract base and brand equity while leaving negotiating room down to the weighted midpoint figure without conceding below fair market value. ───────────────────────────────────────────────────── 8. SENSITIVITY TABLE ───────────────────────────────────────────────────── EBITDA MULTIPLE SENSITIVITY ───────────────────────────────────────────────────── Scenario ......... Multiple .. Valuation ...... vs Base ───────────────────────────────────────────────────── Conservative ..... 3.5x ....... $834,750.00 .. -$238,500 Base Case ........ 4.5x ..... $1,073,250.00 .. Base Optimistic ....... 5.5x ..... $1,311,750.00 .. +$238,500 ───────────────────────────────────────────────────── Revenue Sensitivity: A 10% increase in annual revenue from $1,240,000.00 to $1,364,000.00, applied at the selected 0.90x revenue multiple, would increase the Revenue Multiple valuation from $1,116,000.00 to $1,227,600.00, an uplift of $111,600.00, and would also improve the EBITDA figure if margin is maintained, further strengthening the EBITDA-based valuation in subsequent periods. ───────────────────────────────────────────────────── 9. KEY VALUE DRIVERS ───────────────────────────────────────────────────── Recurring commercial contract base representing 60% of $1,240,000.00 in annual revenue from office parks, HOAs, and municipal clients provides the revenue predictability and client retention profile that commercial buyers and acquirers pay a significant premium to acquire, as it materially reduces post-acquisition revenue risk. Eleven years of continuous operation in the greater Denver metro area combined with a certified landscape architecture team on staff creates a reputational and credential barrier to entry that a competitor or new market entrant cannot replicate quickly, supporting the goodwill estimate of $834,000.00 identified in Section 4. Consistent annual revenue growth of 9% over four years demonstrates a business with genuine market momentum, and at a $1,240,000.00 current revenue base this growth rate projects to over $1,350,000.00 in the next twelve months, increasing the forward earnings argument a seller can make to justify pricing at or above the recommended asking price. ───────────────────────────────────────────────────── 10. KEY VALUE RISKS ───────────────────────────────────────────────────── Peak-season labour availability risk involving 6 seasonal workers is a documented operational constraint that a buyer will scrutinise during due diligence, as any failure to staff peak periods directly limits the business's capacity to fulfil commercial contract obligations and could result in client attrition or service penalties that impair the recurring revenue base. Rising fuel and equipment costs are identified as a primary margin pressure, and with direct production costs already embedded in a net profit margin of 15.00%, any sustained cost inflation without a corresponding price increase mechanism in commercial contracts would compress EBITDA below the $238,500.00 figure used in the valuation, reducing the EBITDA multiple value by approximately $45,000.00 to $70,000.00 per percentage point of margin erosion. Revenue growth of 9% annually falls marginally below the 10% threshold used in the Buyer Attractiveness Score, and a buyer conducting due diligence will note this gap alongside the absence of detailed client contract term information, raising questions about whether the growth rate is sustainable or whether the commercial contract base is approaching saturation within the current geographic footprint. ───────────────────────────────────────────────────── 11. BUYER ATTRACTIVENESS SCORE ───────────────────────────────────────────────────── Profitability above 15% net margin: Net margin is exactly 15.00%, which meets the threshold. 2.0 points awarded. Revenue growth above 10% annually: Growth rate is 9%, marginally below the 10% threshold. 0.5 points awarded. Business operating above 5 years: 11 years in operation, comfortably exceeds threshold. 1.5 points awarded. Diversified customer base: 60% commercial and 40% residential across multiple client categories. 1.5 points awarded. Liability ratio: $148,000 / $430,000 x 100 = 34.42%, below the 40% threshold. 1.5 points awarded. Strong competitive advantage: Certified architecture team and proprietary irrigation system explicitly documented. 1.5 points awarded. BUYER ATTRACTIVENESS SCORE: 8.5 / 10, reported as 8 / 10 Score Breakdown: Profitability above 15% ............ 2.0 / 2.0 Revenue growth above 10% ........... 0.5 / 2.0 Operating above 5 years ............ 1.5 / 1.5 Diversified customer base .......... 1.5 / 1.5 Liability ratio below 40% .......... 1.5 / 1.5 Strong competitive advantage ........ 1.5 / 1.5 ───────────────────────────────────────────────────── TOTAL SCORE ........................ 8 / 10 ───────────────────────────────────────────────────── Score Explanation: Crestwood Landscape & Design is a highly attractive acquisition target with strong fundamentals across five of the six scored criteria, and a buyer is most likely to focus their interest on the recurring commercial contract base, the certified architecture capability, and the proprietary irrigation system as the core sources of durable competitive advantage. The single factor that prevents a top-tier score is the revenue growth rate of 9%, which falls just below the 10% benchmark, and a buyer or their advisors will probe during due diligence whether this trajectory can be maintained or accelerated through geographic expansion or commercial contract additions. ───────────────────────────────────────────────────── 12. VALUE ENHANCEMENT ROADMAP ───────────────────────────────────────────────────── Action 1 — Accelerate Revenue Growth Past 10% Annually Current situation: Revenue growth is averaging 9% annually over four years, just below the 10% threshold that would activate the full 2.0 Buyer Attractiveness points and support a higher revenue multiple selection. Recommended action: Identify and pursue three to five new commercial HOA or municipal maintenance contracts in the Denver metro area within the next six months, targeting incremental annual revenue of $125,000.00 or more to push the trailing growth rate convincingly above 10%. Estimated valuation impact: Crossing the 10% growth threshold and increasing annual revenue toward $1,365,000.00 would support moving the revenue multiple from 0.90x toward 1.0x, increasing the Revenue Multiple valuation by approximately $124,000.00 and strengthening the weighted valuation by approximately $37,000.00. Action 2 — Formalise and Document Recurring Contract Terms Current situation: While 60% of revenue is described as recurring commercial contracts, the report does not specify average contract length or formal renewal terms, which is a gap a buyer's due diligence process will identify and use to discount the recurring revenue premium. Recommended action: Convert all informal or rolling commercial agreements into documented fixed-term service contracts of two to three years with auto-renewal clauses, completed and executed at least six months before going to market, so the contract documentation can be presented as part of the sale information memorandum. Estimated valuation impact: Documented multi-year recurring contracts directly support an EBITDA multiple expansion from 4.5x toward 5.0x, which on the $238,500.00 EBITDA base would increase the EBITDA Multiple valuation by approximately $119,250.00 and lift the weighted valuation by approximately $71,550.00. Action 3 — Implement a Seasonal Labour Risk Mitigation Plan Current situation: Labour availability during peak spring and summer months is identified as the primary operational risk, and buyers in the landscaping sector consistently apply valuation discounts for businesses that have no documented response to seasonal staffing dependency. Recommended action: Establish a formal seasonal staffing programme with a documented recruitment pipeline including at least two pre-identified staffing agency relationships and an incentivised returner programme for the existing 6 seasonal workers, producing a written operational continuity plan that demonstrates the risk is managed rather than uncontrolled. Estimated valuation impact: Removing the seasonal labour risk flag from buyer due diligence supports maintaining the full EBITDA multiple selection and reduces the probability of a post-due-diligence price reduction, protecting an estimated $75,000.00 to $120,000.00 in negotiated valuation concessions that buyers typically use documented operational risks to justify. ───────────────────────────────────────────────────── 13. EXIT STRATEGY RECOMMENDER ───────────────────────────────────────────────────── Recommended Exit Strategy: Trade Sale Why this fits: Crestwood Landscape & Design's eleven-year operating history, established commercial contract base, proprietary irrigation system, and certified architecture team make it an immediately accretive acquisition target for a larger regional landscaping operator, facilities management company, or private equity-backed platform seeking to expand its Denver metro footprint, which is precisely the buyer profile most active in the landscaping consolidation market. A trade sale to a strategic acquirer is the most direct path to realising the full goodwill value of $834,000.00 estimated in this report, as a strategic buyer will pay a premium for the capability and client base rather than simply the financial returns, making the recommended asking price of $1,100,000.00 achievable without requiring the business to demonstrate further growth before going to market. 12-Month Preparation Steps: Engage a commercial business broker or M&A advisor with specific experience in the landscaping or facilities services sector to prepare a formal information memorandum and identify a shortlist of ten to fifteen strategic acquirers in the Denver and wider Colorado market, completing this within the first 90 days to allow adequate time for outreach and indicative offer collection. Complete the three Value Enhancement Roadmap actions above, specifically contract formalisation and labour risk documentation, within six months of the valuation date to ensure the business is presented to buyers in its strongest possible documented condition and that due diligence does not reveal material gaps that would justify price reductions below the weighted valuation. Engage a qualified accountant to prepare three years of clean, reviewed financial statements in a format suitable for buyer due diligence, and ensure that all owner-related expenses, discretionary costs, and add-backs are clearly documented and normalised so that the EBITDA figure of $238,500.00 is fully verifiable and defensible throughout the sale process. ───────────────────────────────────────────────────── DISCLAIMER This report is based on figures and information provided by the user and is intended for planning and reference purposes only. It does not constitute a certified or audited business valuation. Industry multiples used are standard estimates and may vary based on market conditions and specific circumstances. Consult a qualified business valuator or accountant for a formal appraisal and any legal or financial transactions. ───────────────────────────────────────────────────── Prepared for: Crestwood Landscape & Design Purpose: Sale Valuation Date: June 03, 2026 Currency: United States Dollar (USD) ════════════════════════════════════