Thinking about selling a commercial cleaning business? If you are an owner of a janitorial business and are thinking about selling, you should keep in mind that there are many things to consider before making the decision. Many people underestimate the value of their business and end up underselling it.
One of the first steps to take is to research what comparable businesses have been sold for in your area so you can feel confident when negotiating with buyers. The next thing to consider when selling a commercial cleaning business is the asking price. When determining this number, you should take into consideration how much money the company makes annually and what its value might be worth in today’s market. You will also want to make sure that everything is taken care of on the inside before showing your company to outsiders; this includes having work orders, contracts, insurance certificates, etc., ready for viewing.
The last thing someone looking at buying a commercial cleaning business wants to do is spend hours trying to find out if all their questions can be answered from within the organization, they’re considering purchasing. Read on to discover factors you need to consider to complete a successful sale.
How to Sell Your Commercial Cleaning Business for Maximum Value
To get the best price for your janitorial business, make sure you have everything in order for potential buyers.
- Get your work orders, contracts, and insurance certificates all together in one place.
- Make sure you have a good grasp of the financials of the business. What are gross sales? How much do operating costs come to per month or quarter? Are there any unforeseen expenses coming up that would affect profitability such as replacing equipment in the next year?
- Be aware of what your company’s assets and liabilities are.
- Take good, clear photos of equipment including any unique features or customizations to help potential buyers see how they might use the items in their own businesses.
- Provide detailed descriptions about each piece of equipment for sale so that a buyer can make an informed decision.
How Do You Value a Cleaning Business for Sale?
Many business owners often ask, “how do you value a cleaning business for sale?” The simple answer is that the best way to value a cleaning business is by comparing the company’s financials, equipment list, and other important details with similar businesses in your area.
Once you have a clear understanding of the kind of assets in the business – including items like vehicles, tools, supplies, and office equipment, the best method for obtaining janitorial business values is to consult with a business broker. Professional business brokers assist business owners with selling their commercial business, as well as listing the janitorial company for sale.
When you’re selling a cleaning service or janitorial company, it’s helpful for potential buyers to know how much equipment is included in the list price and what those items are.
Look at your average monthly expenses too – these will vary depending on whether there are multiple buildings being serviced or just one location in an office park. For example, if your clients have been using paper towels instead of reusable cloths because they were cheaper (and more wasteful), then this would be something you could offer them when discussing potential pricing strategies with prospective buyers. It’s also important that you include any other additional charges like insurance, taxes, and licenses so that everything can be fully disclosed for the new owners.
Selling a Commercial Cleaning Business: How much will it cost?
Business brokers, like Sunbelt, will help you figure out the best selling price for your company. They will use a valuation formula developed by industry professionals to determine how much it’s worth and then set up meetings between you, potential buyers, and their clients to gauge interest in purchasing your business. If there is not enough market demand for janitorial cleaning services in your area, they may recommend that you expand your company’s offerings to other cleaning services or change your company name so that it is more memorable. Once there is an offer from a qualified buyer we’ll represent you every step of the way!
Contact Sunbelt Business Brokers to learn more about cost and the process to have broker representation in the sale of your business. We are the leading business brokers in Sarasota, Naples, and Fort Myers. Our team of experts will provide you with a free consultation on how to sell your commercial or janitorial cleaning company for top dollar.