Business Overview

This outstanding business has been serving its community and surrounding areas for over 40 years and has grown into a highly diversified business offering a broad range of commercial and residential cleaning services. The overall success of the business was key in the business being recognized as the top business in their region.

Services are managed and delivered by staff that are among the best trained, and most experienced and knowledgeable in the industry. The average length of employment for a full time employee is over 10 years.

The business’s broad range of services cover janitorial services, floor cleaning, and disaster restoration services. Over the past three years almost 3,000 customers have been served, and Google reviews are rarely less than 5 Stars. 65% of services revenue is recurring.

The current owners have grown the business to record levels of revenue and profitability and have greatly enhanced operations by implementing technology to the point that operations have become mostly paperless. Even though the business has grown significantly in size and service offerings, there are several possibilities for a new owner to grow the business by expanding the geographic market covered and adding new services.

Financial

  • Asking Price: N/A
  • Cash Flow: $512,181
  • Gross Revenue: $2,734,280
  • EBITDA: N/A
  • FF&E: $612,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1978

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:24
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business operates from a modern leased 10,500 square foot building that is a combination of office space and high-ceiling warehouse. The existing facilities could accommodate up to 50% growth in the business.

Is Support & Training Included:

Will train for 4 weeks @ $0 cost. The new owner should have management experience in a customer service environment to know how to respond to residential customers and commercial property managers. The business can be learned through classes, employee support, and hands-on experience. Operations are mostly paperless and mostly run by different apps, so computer and technology skills is necessary. The strong experience and knowledge of the staff will serve to make the training/transition process smooth for the new owner. The owners will provide four(4) weeks of training and transition assistance at no cost for the new owner. They are open to staying engaged in the business for a longer period if necessary.

Purpose For Selling:

Business is in great shape in all aspects and ready to sell to the right buyer.

Pros and Cons:

Competition consists of the national franchises in restoration services and carpet cleaning. The business distinguishes itself from the national players with their business practices and continuing efforts to build trust and strong relationships in the local community. The owners have trained their staff to continuously study cleaning methods and products, and the result is that services are delivered by professionals who are knowledgeable and work to ensure the job is done right. Competitive disadvantages include that the business is not the lowest bidder most of the time because more time is invested in staff training and staff are paid better than what is typical of competitors in their region of the state. The business does not have the large marketing budget of a national franchise and therefore focusing on relationships and targeted marketing has been one of the keys to their success.

Opportunities and Growth:

The new owner could grow the business by upselling, increasing prices, expanding the geographic area served, adding new service lines and gaining more of the market share in insurance related restoration services. New service line possibilities include: Residential maid service, expanding duct cleaning services into cleaning wall units at hotels/motels, floor mat service for companies with branded floor mats(the business often receives requests for this service), vehicle detailing(this service is currently provided on a small scale), asbestos or lead paint remediation, light building maintenance such as lightbulb and air filter changing(a logical addition to current janitorial services), and trauma scene cleanup A more aggressive marketing and sales effort directed at insurance companies and contractors could win more business in insurance related restoration services.

Additional Info

The company was founded in 1978, making the business 44 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals choose to sell operating businesses. However, the genuine factor vs the one they tell you may be 2 completely different things. As an example, they might say "I have a lot of various obligations" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may simply be reasons to attempt to hide the reality of altering demographics, increased competition, recent reduction in earnings, or a range of other factors. This is why it is extremely vital that you not depend completely on a seller's word, however instead, make use of the vendor's response together with your overall due diligence. This will paint an extra sensible image of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Many companies borrow money in order to cover items such as stock, payroll, accounts payable, and so on. Remember that occasionally this can indicate that revenue margins are too tight. Lots of businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that should be fulfilled or might lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area draw in new customers? Many times, operating businesses have repeat clients, which create the core of their everyday revenues. Certain factors such as new competition sprouting up around the location, road building, and also employee turnover can influence repeat clients and also adversely influence future profits. One important point to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business regularly, the higher the opportunity to construct a returning customer base. A final idea is the general area demographics. Is the business located in a largely inhabited city, or is it located on the edge of town? Exactly how might the neighborhood median home earnings effect future income prospects?