What a buyer weighs in a cleaning company
- Contracts
- Length, notice terms and renewal history on every account, and whether they assign to a new owner.
- Account mix
- Offices, medical, industrial, retail and government, and how much the largest account carries.
- Crew and supervisors
- Turnover, how crews are paid and whether supervisors run nights without you.
- Margins
- Profit by account after labor and supplies, so a buyer can spot the ones that lose money.
- Bidding
- How new accounts come in and how well you hold price on renewals.
Contracts Carry the Price
A cleaning company's revenue repeats every month, which is exactly what buyers want. What they test is how secure it is.
Many cleaning contracts can be cancelled on 30 days notice. That is normal, but it means your track record of renewals carries as much weight as the contracts themselves.
Pull together how long each account has been with you and whether any contracts need the client's consent to assign. Your attorney will want to see those clauses early.
Large Accounts and Concentration
Winning a big property manager or a school district can double a cleaning company. It can also leave one client with too much of your revenue.
When a few accounts carry more than about 15 to 20% each, buyers lower their offer or tie part of the price to keeping them.
Labor Is the Biggest Cost
Most of your cost is people. Buyers will look at wage rates, overtime, turnover and how you staff nights across the metro. A layer of supervisors or area managers who run the routes without you is one of the most valuable things you can build before selling.
Payroll this size also means your Georgia unemployment account will matter to the buyer. Read the unemployment rate transfer guide.
Equipment, Supplies and Insurance
Floor machines, vehicles and supply inventory are usually part of the sale. A list with age and condition saves time. Buyers will also ask for your general liability and workers compensation history, plus any bonding a client requires.
Specialty services such as floor care, window work or medical cleaning often carry better margins than routine janitorial work. If they make up a good share of your profit, break them out so the buyer sees them.
Who Buys Cleaning Companies
Regional cleaning firms buy competitors to add routes and density. Facilities groups add janitorial to their services.
Operators with management backgrounds buy with SBA loans. Each looks at your accounts a little differently, so a broker who knows the buyer pool can matter.
Clean Books Sell Faster
Owners in this industry sometimes run personal expenses through the company or pay some help off the books. Both hurt at sale time.
Unreported costs leave a buyer guessing, and income you didn't report can't be counted. Our page on business valuation before you sell explains what can be added back.
See the selling process for how a confidential sale runs, then send the form or call (404) 555-0139 for a private estimate.