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Cleaning business for sale and commercial cleaning companies for sale

A cleaning business for sale is priced on the contracts it already holds, not on the vans and vacuums. Most small residential and commercial cleaning companies trade at roughly 1.5 to 3 times seller's discretionary earnings (SDE), and firms with signed recurring janitorial contracts, a crew lead who runs the work and no single customer above 15 percent of revenue move toward the top of that range. On CompanyBrokers every cleaning company listing shows revenue, SDE, asking price, the implied multiple and the recurring share of revenue, while customer names and contract copies stay in a data room you open after an NDA and a proof of funds step.

Value my company
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Industry
Cleaning and janitorial company
State
Florida
Asking price
$80K to $1.5M
SDE
$120,000+
  • NDA signed
  • Proof of funds
  • Data room
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How much is a cleaning business worth

Buyers start from SDE, which is net profit plus the owner's pay and perks, and then adjust for how safe that profit is. A commercial firm where most revenue comes from monthly contracts is worth more than a residential company that depends on one off deep cleans and move out jobs, because contract revenue repeats without new selling. Larger companies with managers and a payroll above a few hundred thousand dollars are valued on adjusted EBITDA instead.

Business profileAnnual revenueRevenue mixTypical multipleIndicative price
Owner operated residential cleaning, 3 crews $350,000 Mostly one off and biweekly homes 1.5x to 2x SDE $90K to $130K
Commercial janitorial, evening crews $800,000 80% monthly contracts 2.5x to 3.5x SDE $400K to $600K
Medical and office cleaning with a manager $1,500,000 90% multi year contracts 3x to 4x SDE $900K to $1.4M
Specialty cleaning such as carpet or pressure washing $450,000 Mixed repeat and project 1.8x to 2.5x SDE $130K to $200K

These rows are worked examples to show the math, not listings. Put your own numbers into the business valuation calculator to see a range for a specific company, and read the full method in the business valuation formula guide.

What buyers check before buying a janitorial company

  • Revenue and gross margin by customer for the last three years, and which accounts are on written contracts
  • Contract terms, renewal dates and termination clauses, since many commercial contracts can be cancelled with 30 days notice
  • Customer concentration, especially one building owner or property manager above 15 percent of revenue
  • Owner dependence, meaning who handles the walk throughs, the complaints and the sales
  • Crew turnover, wage rates and whether workers are correctly classified as employees or contractors
  • Insurance, bonding and any claims for damage, theft or injury
  • Equipment, vehicles and supplies that transfer with the sale, and any leases
  • Licenses required by the state or city, and special certifications for medical or government work

Contract quality sets the multiple

Two cleaning companies with the same profit can sell for very different prices. The one with written contracts of one to three years, automatic renewals and customers spread across many buildings is financed easily and sells at a higher multiple. The one that runs on handshake agreements and a few large accounts is priced like a job. If you plan to sell in the next year, moving verbal customers onto simple written agreements is the cheapest way to raise the price.

Financing a cleaning business purchase

Cleaning companies with documented recurring revenue are regular candidates for an SBA loan to buy a business. Buyers commonly put 10 percent or more down, and sellers often carry a note for part of the price, which keeps them involved in introducing the new owner to the biggest accounts. Lenders look at three years of returns, contract lists, payroll records and the buyer's own experience managing crews.

Selling your cleaning company

Owners who want the top of the range spend six to twelve months before listing putting contracts on paper, promoting a crew lead to supervisor and cleaning up payroll records. Prepare three years of returns, a revenue report by customer without names for the first round, a crew list with tenure and wages, and the insurance certificates, then decide whether to list it yourself on the Owner Listing plan or work with a broker. The step by step version is in sell my cleaning business.

How much does a cleaning business sell for

Most small cleaning businesses sell for roughly 1.5 to 3 times seller's discretionary earnings (SDE), and firms with signed recurring commercial contracts and managers in place can reach 3 to 4 times. A company with $150,000 SDE would usually be priced between $225,000 and $450,000, often with part paid over time.

Is a commercial cleaning business a good business to buy

It can be, because janitorial contracts repeat monthly and customers rarely switch for small price gaps. The risks are thin margins, labor turnover and contracts that end when the building owner changes vendors. Buyers do best with firms that have multi year contracts, a working crew lead and diverse accounts.

How do I value a cleaning company

Add up net profit, the owner's pay and perks, interest and one time costs to get SDE, then apply a multiple based on contract quality, customer concentration and owner dependence. Recurring commercial contracts earn higher multiples than one off residential or move out jobs.

Can I get an SBA loan to buy a cleaning business

Yes. SBA 7(a) loans are common for cleaning company purchases when the seller can document three years of returns, contract lists and customer retention. Lenders typically want a down payment of 10 percent or more and a seller note or a clear transition plan.

What do buyers check before buying a janitorial company

They check contracts by customer with start dates and renewal terms, revenue and gross margin by account, labor classification and payroll taxes, insurance and bonding, crew turnover, and whether the biggest accounts talk only to the owner. Anything that suggests revenue leaves with the owner lowers the offer.