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Medium Mergers & Acquisitions Growth strategy Market sizing

Luxury Landscaping

#Engineering & Construction #Financial Services
ProHub Comment

This is a structured market sizing case focused on evaluating a geographic expansion opportunity for a luxury landscaping services company. The candidate must calculate the addressable market (55-60K homes) and annual project volume (~2,500-3,000 projects worth ~$750MM) by layering assumptions about property values, single-family homes with yards, and service frequency. The case tests both quantitative rigor and qualitative thinking about market dynamics.

Estimated Time 15 minutes
Difficulty Medium
Source Tuck
50 / 100
Our client, a private equity firm, is considering an investment in a luxury residential landscaping company that focuses on large-scale renovation projects for high-value homes ($2MM+). As part of the development of its growth plan following the acquisition, our client wants to study Los Angeles County to evaluate its appeal as a target for geographic expansion.

Clarifying Information

  1. Additional Service Background: The company does total landscape renovation projects of residential yards (e.g., installing pools, replacing/planting foliage, creating plant beds, building/replacing patios, etc.). Property sales can sometimes be a prompt for undertaking a project, otherwise it is a significant upgrade investment.
  2. Service Pricing / Frequency: Ask the candidate to explain their intuition about what they think price/frequency might be based on the nature of the services. Then, let them know frequency is every ~20 years and the price is typically ~10% of the value of the home.
  3. Demographic Data: Provide the relevant L.A. County data in the exhibit with if requested.
  4. Competitive Landscape: ~100-200 small players on average undertaking <25 projects per year.