Resources
Everything you need to know about buying and selling commercial cleaning businesses.
📰Latest Insights
This Week's Deal: Why the Utah Janitorial Company is Hot
A deep-dive analysis of a 7-year-old commercial janitorial company generating $2.5M in revenue and $600K in cash flow. We break down the valuation, financing, risks, and why this Class A property cleaner is one of the best deals we've seen this quarter.
For Buyers
What to Look For
When evaluating a cleaning business acquisition, focus on:
- • Contract diversity - Multiple clients reduce risk
- • Recurring revenue - Long-term contracts are gold
- • Employee retention - Low turnover indicates stability
- • Equipment condition - Old equipment = hidden costs
- • Geographic concentration - Tighter routes = higher margins
Typical Valuation Multiples
Commercial cleaning businesses typically sell for:
- • 2.0-3.5x SDE for businesses under $1M revenue
- • 3.0-4.5x SDE for businesses $1M-$3M revenue
- • 4.0-6.0x EBITDA for businesses over $3M revenue
*Multiples vary based on contract quality, growth, and geographic market
Financing Your Purchase
Most buyers finance 70-90% of the purchase price through:
- • SBA 7(a) loans - Up to 90% LTV, 10-year terms
- • Seller financing - Often 10-20% of purchase price
- • Equipment financing - For vehicles and machinery
Need financing? We work with SBA lenders who specialize in cleaning business acquisitions. Contact us for an intro.
Due Diligence Checklist
Before you buy, verify:
- • Client contracts (length, terms, renewal history)
- • Financial statements (3 years minimum)
- • Employee agreements and turnover rates
- • Insurance policies and claims history
- • Equipment condition and maintenance records
- • Outstanding liabilities or legal issues
- • Customer concentration (top 3 clients = what % of revenue?)
For Sellers
Preparing Your Business for Sale
Maximize your sale price by:
- • Clean financials - Get 3 years of statements reviewed by a CPA
- • Document everything - SOPs, contracts, client lists
- • Reduce owner dependency - Buyers want turnkey operations
- • Lock in contracts - Long-term contracts increase value
- • Address maintenance - Fix deferred maintenance on equipment
When to Sell
The best time to sell is when:
- • Revenue is growing (buyers pay premiums for growth)
- • You have strong client retention (shows stability)
- • Equipment is in good condition (reduces buyer risk)
- • Market conditions are favorable (low interest rates help buyers)
Want to sell your cleaning business? Learn more →
Market Insights
Industry Trends
- • Consolidation wave - Larger players are acquiring smaller operators
- • Labor challenges - Finding and retaining quality employees remains difficult
- • Technology adoption - Software for scheduling, billing, and quality control is becoming standard
- • Specialization premium - Niche services (medical, industrial) command higher multiples
What Buyers Want Most
- • Businesses with $500k-$5M in revenue
- • Strong contract base with Fortune 500 or government clients
- • Owner willing to stay on for 90-180 day transition
- • Clean financials with verifiable cash flow
- • Established employee base with low turnover
Have Questions?
Whether you're buying or selling, we're here to help. Get our weekly insights and the Top 10 deals every Monday.