Business Overview

SBA approved with 20% down payment

Janitorial Cleaning Service with a great history and reputation.

Approximately 25% of the clients are commercial (offices) and 75% are residential. Most of the clients are repeat and word of mouth.

Established for 17 years the business is still growing. It has one employee/manager and about 40 contracted workers who work on a percentage of the sales.

The owner is almost absentee and looking forward to retire and focus on other passive investments.

There is minimum office supplies or inventory. Business is run out of an office and the lease is lower than the market rate. The new owner can take over the lease or run the business out of their home.

Adjusted net profits to the owner have been increasing 25% year over year and 2022 has started strong and anticipated to keep the trend.

This is a perfect business for a first time business owner who has little experience. Why wait 17 years to get to the point of building a business to this size when you can start by earning $500k plus with part time involvement?

Financial

  • Asking Price: $1,875,000
  • Cash Flow: $489,561
  • Gross Revenue: $1,708,462
  • EBITDA: $592,000
  • FF&E: $5,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2005

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:850
  • Lot Size:N/A
  • Total Number of Employees:40
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Excellent lease, Buyer may take over the lease or relocate.

Is Support & Training Included:

Negotiable

Purpose For Selling:

Retirement/Other investments

Pros and Cons:

Great reputation and word of mouth business.

Opportunities and Growth:

Minimum advertising. 25% of the business is commercial and can be increased by owner efforts.

Additional Info

The company was founded in 2005, making the business 17 years old.

The business has 40 employees and resides in a building with estimated square footage of 850 sq ft.
The property is leased by the business for $1,910 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people resolve to sell companies. Nevertheless, the true reason vs the one they say to you may be 2 completely different things. For instance, they might state "I have a lot of other obligations" or "I am retiring". For numerous sellers, these factors stand. But, for some, these might simply be excuses to attempt to hide the reality of transforming demographics, increased competition, current reduction in incomes, or a variety of other reasons. This is why it is really important that you not rely entirely on a vendor's word, yet instead, make use of the seller's answer along with your general due diligence. This will repaint a more practical picture of the business's present situation.

Existing Debts and Future Obligations

If the current company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies finance loans with the purpose of covering things like inventory, payroll, accounts payable, so on and so forth. Remember that in some cases this can suggest that earnings margins are too tight. Many organisations fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that should be satisfied or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location draw in new consumers? Many times, operating businesses have repeat consumers, which develop the core of their day-to-day profits. Specific variables such as brand-new competition sprouting up around the area, road building, as well as staff turn over can affect repeat clients as well as negatively influence future earnings. One vital thing to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business often, the higher the chance to develop a returning customer base. A last idea is the general area demographics. Is the business situated in a largely inhabited city, or is it located on the outside border of town? Just how might the regional median family earnings influence future revenue potential?