Business Overview

Continuous Growth – Commercial and Residential Cleaning Company for 25 years with a stellar reputation in high income neighborhoods. Commercial contracts with schools, churches, office/condo buildings, warehouses, medical offices, and retail stores. Additionally, they offer residential cleaning, construction cleaning, laundry services, window washing, power washing, move-in and move-out cleaning, carpet cleaning. High growth opportunity with 35 dedicated employees. 2 vans included.

2021 Revenues were $1.9M, 823k SDE. As of March 2022, they added additional contracts worth 325k in gross revenues with another large contract of 550k pending they are currently aware of.

This is a family-owned, turn-key business operated out of their home-office and ready for its new owner. Seller is looking to retire.

Financial

  • Asking Price: $2,650,000
  • Cash Flow: $823,000
  • Gross Revenue: $1,900,000
  • EBITDA: $823,000
  • FF&E: $50,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1997

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:35
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Home Based

Is Support & Training Included:

Will provide

Purpose For Selling:

Retirement

Opportunities and Growth:

Continuous growth year after year. More contracts signed as of 2022!

Home Based:

This Business Is Home Based

Additional Info

The venture was started in 1997, making the business 25 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals decide to sell companies. However, the real factor vs the one they say to you may be 2 completely different things. As an example, they may state "I have way too many various responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might simply be excuses to try to conceal the reality of transforming demographics, increased competitors, current decrease in earnings, or a range of various other reasons. This is why it is really important that you not rely absolutely on a seller's word, but instead, make use of the vendor's response along with your total due diligence. This will repaint an extra realistic image of the business's existing scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Lots of businesses borrow money with the purpose of covering points like inventory, payroll, accounts payable, etc. Bear in mind that in some cases this can mean that earnings margins are too thin. Lots of companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that should be satisfied or may lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location attract new customers? Many times, businesses have repeat consumers, which create the core of their day-to-day revenues. Particular aspects such as new competitors sprouting up around the area, roadway building, and staff turn over can affect repeat clients and also adversely influence future revenues. One important point to think about is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the better the chance to build a returning consumer base. A last thought is the general location demographics. Is the business situated in a densely inhabited city, or is it located on the edge of town? Exactly how might the local mean family earnings influence future earnings potential?