Business Overview

The owner is selling their cleaning accounts. The gross profit on these accounts is 50-60%, so around $145,000.

The cleaning accounts are being carved out of a business that includes the cleaning accounts and a lawncare/landscaping business segment. There are two owners. One of the owners oversees the cleaning accounts and wants to retire.

They perform about 35-40 cleanings per week. Some are weekly accounts and some are every other week. Overall, there are about 80 accounts. The buyer will also benefit from one-off cleanings that will be redirected to the buyer.

The accounts include some commercial accounts that are hard to obtain and very desirable.

There are typically two cleaning crews of two people each. Their business is all day-time cleaning, incuding the commercial accounts. They have no evening cleanings.

A crew of two can produce $500-$700 revenue per 6 to 8 hour cleaning shift.

There are two vehicles and supplies included in the asking price. The vehicles are worth approximately $10,000 and there is roughly $5,000 in cleaning supplies.

The sale does not include the cash or accounts receivable of the Seller and the remaining assets will be sold debit-free. The Buyer will have to evaluate its own operating expenses to be incurred in connection with ownership of this business post-acquisition.

At this price, the buyer can get their purchase price back in a year or less.

This company also operates a lawncare and landscaping service. The lawncare and landscaping business segment is available with the cleaning service accounts or separate from the cleaning service accounts. The BizBuySell listing for the lawncare and landscaping business is #1852339.

Financial

  • Asking Price: $100,000
  • Cash Flow: $100,000
  • Gross Revenue: $262,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2011

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:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The cleaning accounts are in the owner's business location, which is primarily used for their other business segment. The cleaning supplies are currently in one office that has an outside access. They can remain there for a negotiated fee or can be relocated as long as the cleaning crews have access to the supplies without having to travel too far from the business' current location.

Is Support & Training Included:

Introductions to accounts and training assistance will be provided during a transition period.

Purpose For Selling:

retirement / personal

Additional Info

The business was founded in 2011, making the business 11 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people resolve to sell operating businesses. Nonetheless, the genuine factor vs the one they tell you may be 2 entirely different things. For instance, they might say "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may simply be excuses to try to conceal the reality of altering demographics, increased competition, current decrease in profits, or a variety of other factors. This is why it is really essential that you not rely entirely on a seller's word, yet instead, use the seller's response together with your overall due diligence. This will repaint a much more reasonable image of the business's current circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses borrow money in order to cover things such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can mean that revenue margins are too thin. Lots of organisations fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that need to be fulfilled or might result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location bring in new clients? Most times, businesses have repeat consumers, which form the core of their everyday revenues. Particular factors such as brand-new competitors growing up around the area, road building and construction, and personnel turnover can influence repeat consumers as well as adversely affect future revenues. One vital thing to think about is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business often, the greater the possibility to build a returning consumer base. A final idea is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? Just how might the neighborhood typical family earnings influence future income prospects?