Listing ID: 82172
This reputable commercial janitorial services business has been providing high-quality cleaning services to commercial, industrial, and healthcare clients in one of Eastern Iowa’s largest metro areas for more than 30 years. The business has built a solid reputation based on a top-quality workforce known for their reliability and ensuring customer expectations are always met. Employees are fully insured and bonded, and the business utilizes environmentally friendly products. Nearly all customers are on long-term/recurring contracts which provides reliable revenue for the business.
- Asking Price: $798,500
- Cash Flow: $165,592
- Gross Revenue: $861,199
- EBITDA: N/A
- FF&E: $1,301,988
- Inventory: $34,500
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:20
- Furniture, Fixtures and Equipment:N/A
The business is based in a modern, easy-to-access facility with ample parking. The facility is approx. 14,200 sq. ft. including finished office space and a warehouse/indoor vehicle parking.
Since all employees are fully insured and bonded the business is able to secure accounts with law firms, medical facilities, and local city, state, and federal government agencies to include police/fire stations, licensing offices, and other government service providers.
Due to the strong reputation the business has built, it is well postured to add clients as more workforces return to the office increasing the need for cleaning services. A dedicated salesperson could increase the presence the business has established in the commercial/industrial and healthcare markets. Additionally, the business has the skilled managerial staff needed to offer new services such as kitchen hood cleaning or fire/mold remediation services.
The transaction will include inventory valued at $34,500, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people resolve to sell operating businesses. However, the true factor and the one they tell you might be 2 absolutely different things. As an example, they may say "I have too many other commitments" or "I am retiring". For lots of sellers, these factors stand. However, for some, these may simply be excuses to attempt to hide the reality of altering demographics, increased competitors, current decrease in revenues, or a variety of other factors. This is why it is really essential that you not rely completely on a seller's word, yet instead, make use of the seller's answer together with your overall due diligence. This will paint a more sensible picture of the business's current scenario.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Many operating businesses finance loans with the purpose of covering things like stock, payroll, accounts payable, etc. Bear in mind that occasionally this can suggest that earnings margins are too tight. Lots of organisations come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that should be met or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area attract brand-new clients? Many times, operating businesses have repeat clients, which develop the core of their everyday profits. Specific factors such as new competitors growing up around the location, roadway building and construction, and personnel turn over can influence repeat clients as well as negatively impact future profits. One crucial thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business on a regular basis, the better the possibility to construct a returning consumer base. A last idea is the general area demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? Just how might the neighborhood typical family income influence future income potential?