From determining the value to filling out the paperwork, there’s more than you might think to selling your cleaning business. Make sure you get the most for your money.
For one reason or another, the time for selling your cleaning business has finally come. No matter how many years you’ve put into your company, whether it be a lifetime or a single year, you’ll want to make sure that you get what your company’s worth.
But how do you know what your business is worth? It’s certainly got to do with more than just the equipment you have. (In fact, your equipment is probably the least of your business’ value.) There are dozens of variables to consider, not to mention calculations to make, to maximize the value of selling your cleaning business.
4 Steps to selling your cleaning business
To determine the appropriate selling price for your business, collect some information first, if you don’t already have it handy. Here are some of the things you’ll need to have ready:
- All current and pending contracts, including longevity of contracts and history of service
- Accounting ledgers
- Employee records and overhead costs
- A list of physical assets, such as cleaning equipment, office equipment, supplies, and vehicles
Some things to think about here, particularly if you haven’t fully decided to sell:
- What kinds of contracts do you have? Do you work with many small accounts, or a few large accounts? Typically, investors in cleaning businesses prefer many smaller accounts to the large accounts. That’s not to say you should go out and try to rack up a bunch of new accounts before selling your cleaning business (client longevity matters, too), but it will affect the value if you don’t have that many clients, even if your current clients are big accounts.
- Do you have a sales team (or person) already?
- Is your workforce likely to stay on board after the sale of the company?
Make checklists and track your progress with Janitorial Manager. Schedule a free demo right now to find out more!
2. Determining the value
There is no set formula for determining how much your cleaning business is worth. In theory, you could set any price. However, if you want to maximize your profit while also remaining competitive in the marketplace, do some calculations to find out approximately how much is a reasonable ask. We highly recommend that you contact a qualified business broker who is familiar with the cleaning industry to help you figure out the proper multipliers to use for your valuation. If you want to get a rough idea, take the average of the following:
- 70% of your annual revenues
- 80% of your net sales
- 450% of your net income
- 650% of owner’s equity
Take the final number and add any additional value, such as the cost of equipment and furniture, to get an approximate value for your business.
3. Find a buyer
Finally, you need to find a buyer! Again, the best way to do this is to go through a business broker, but if you’re selling your cleaning business independently, you’ll want to make sure you list it in the right places. BizBuySell.com and BizQuest.com are two online resources that can be helpful, as well as sites like Craigslist. Consider taking out ads in local publications with a similar target audience as yours. And of course, one of the best ways to sell anything—word of mouth. Tell everyone you know what you’re up to, and you might be surprised at the prospects that come your way.
Keep track of all your cleaning jobs with Janitorial Manager. Schedule a free demo right now to find out more!
4. Deciding not to sell
After reading this, you may rethink your decision to sell, which isn’t a bad idea. Even though now is a good time for selling your cleaning business (the Bureau of Labor Statistics projects average growth for the industry through 2024), double-checking with yourself that you’re doing it for the right reasons is just smart business.
If you’re selling because your business isn’t doing as well as you’d like, there are some other checklist items you might look at that can help you build on what you already have, which may be more lucrative in the short term. Have you:
- Tapped all your resources to make your cleaning business a success?
- Invested in new technologies and updated equipment?
- Hired the right people?
- Focused on a niche market?
- Done all you can to reduce turnover and increase customer satisfaction?
If the answer to any of the above questions is no, perhaps it’s not quite time to sell. However, if you answered yes to everything, or if you just know in your heart of hearts that it’s time to move on, you’ll do well to be as thorough as possible. If you can, make one last investment in a good business broker, take the time to gather all of the necessary information to defend your price point to any potential buyers, and don’t settle for less than you’re worth.
I’ll like to know how much my Janitorial business is worth to sell it
Any chance that you are looking to sell your cleaning company and are located in South Florida or New York/Connecticut? If yes, I may have an interest to buy it.
Possibly in Central Florida
I am looking to sell my Residential Cleaning Business.
I’ve been open since early 2017 and have a very good clientele roster, Also,
Our name is very reputable in the southwest Florida area.
I’m looking to sell a client list in NYS. Dba has been doing well yet I’m looking to move south and restart.
Yes South Florida
Palm Beach County
I am looking to sell my commercial cleaning franchise in the Nashville TN area. Consists of cleaning offices. Schedules are Monday through Friday.
I am selling my Vacation Rental Cleaning Company, is located in Southwest Florida.
The only so far in the area that I am.
Hello, I’m looking for a cleaning business to buy in South Florida.
In Broward County wold be my preference.
If you’re interested please contact me at
I am relocating and will be selling off my cleaning business. I am in San Diego County with 30+ clients and 2 realty companies. I am accredited with BBB and have a good reputation with positive reviews. If interested please contact. Looking to sell by June 2022.
Looking for someone interested in 20+ clients in the Portland, OR metro area. Most of them have been customers for about 4 years.
Carlos: I’m interested …..NWFM@comcast.net
I would like to discuss with you your accounts in Portland. Please reach out to me directly. We can complete a transaction quickly.
Please call me
Looking to sell my cleaning business. Have serviced over 850 clients. Serious inquiries only.
Cleaning business in vancovuer wa. Considering selling . Have 58 clients . Very good retention with clients. Been in business just under 3 years and does very well .
Emanuel, have you sold your business? Do you have employees? Would like to find out more information.
Interested in selling my cleaning business in Northern Colorado. Solid business for 18 years, with great employees and clients.
Selling a commercial cleaning business with good clients in Los Angeles if anyone is interested. Staffed and with good equipment.
Looking to sell my cleaning company in Oakland county Michigan.
My business is very successful and my company is very well known.
We continue to grow daily.
Selling a commercial janitorial business in fresno ca
Looking to sell small commercial cleaning biz in north dallas in texas. Any interest please reach out
Hello!!! I am in the Dayton Ohio & Surrounding Areas Region. I have 50 plus clients and I am looking for a reasonable buyer. We are BBB accredited with a 5 star reputation. Please get with me if interested.
I’ve been in business for 25 years with a 5 star rating for the entire time. I have 20 clients, 2 are commercial clients. I am the exclusive cleaning company for a local home builder and have several clients that want to come back on line. I’m willing to help you build the business for 3 months as part of the package deal. Serious people with financing in place only.
Been in business for 5 years Looking to sell my commercial cleaning business based just north of Dallas, Texas. Vehicle and equip for sale including client list. Long ongoing contracts with great rep in the area. Please email me email@example.com