Who Tends to Buy
- Larger facility services firmAdds your buildings and crews to routes it already covers.
- Regional cleaning companyWants density in new parts of the metroplex.
- Operator moving up from a smaller firmBuys a steady book of accounts to grow from.
Contracts and their terms
Buyers want written agreements with clear terms, notice periods and pricing. Many cleaning accounts renew quietly, and a buyer likes to see how long each has stayed.
List accounts by monthly revenue, start date and contract end date.
Account mix
A company with dozens of mid sized accounts looks steadier than one tied to a few large buildings. If one property manager controls many of your accounts, the buyer will ask what happens if that person moves.
See the customer concentration note for steps that help.
Supervisors and labor turnover
Labor is the main cost and the main risk. Buyers look at turnover, pay rates and how you cover absences. Supervisors who hold the client relationships are worth keeping, so expect retention terms.
Pricing and margins
Know your margin by account. Underpriced accounts can drag results, and a buyer who finds that after closing may ask for a lower price during diligence.
Supplies, equipment and insurance should be tracked cleanly. Workers' compensation coverage gets a close look.
What to gather before you list
Gather your account list with monthly price, start date and contract end date, plus labor hours by account. Add your insurance certificates, your supply costs and your list of equipment.
Buyers will want to see how you handle quality checks, since client complaints drive cancellations. A simple log of inspections and fixes shows you manage it.
Because many of your clients are other businesses, a buyer may call a few of them near closing. Plan with your broker when that is allowed.
Signs of a strong company
- Accounts that have stayed for years
- A supervisor team that runs routes without the owner
- Documented pricing and margin by account
- Tax returns that match the books
To see a likely range, request a private price range. If you also lease a warehouse, read about lease assignment.