Sell a Commercial Janitorial Business

Measure earnings account by account

A large contract can look attractive until its labor, supervision, supplies and travel are counted. Show the margin behind major accounts and explain changes in staffing or pricing.

Separate recurring cleaning agreements from unusual deep cleans or project work. Avoid presenting a temporary surge as the normal earnings a buyer can expect.

Make contract continuity explicit

List renewal dates, termination rights and assignment requirements. Customers who have stayed for years may still have the right to leave on short notice.

If you personally resolve every service issue, build a transition plan for account management. The buyer must know whether a supervisor can handle that responsibility after closing.

Prepare defensible labor records

Payroll compliance and employment records belong in the diligence review. Do not try to improve apparent earnings by omitting ordinary wages or off book labor.

• Keep current payroll totals tied to the accounts.
• Document supervisor coverage and customer escalation.
• Identify equipment owned outright and obligations that remain with the seller.

Examine the retention terms in an offer

A buyer may propose an earnout linked to keeping accounts. Define the measurement and your access to information with counsel before accepting that risk.

Compare the promised headline amount with cash received at closing. A contingent payment is not equivalent to money already paid.

Keep the sale moving

• Review account concentration
• Understand earnout terms
• Request your confidential seller valuation

Use the valuation form to outline your sale, or call (408) 555-0179.