The Short Answer
Most cleaning companies sell for roughly 2x to 4x Seller's Discretionary Earnings (SDE). A company earning $250,000 in SDE typically sells for $500,000–$1,000,000. The range is wide because the type of cleaning matters enormously: recurring commercial janitorial contracts command 3x–4.5x, while residential maid-service work — more transactional and higher-churn — typically lands at 2x–3x.
Cleaning companies are attractive to buyers because they are low-asset, cash-flowing, and scalable. The value comes almost entirely from the durability of the customer contracts and the strength of the workforce, not from equipment.
Get a confidential, no-obligation valuation of your cleaning company based on your real numbers — not a generic online estimate.
How Cleaning Companies Are Valued
Cleaning companies are valued on a multiple of SDE, with very little asset value to add — so the multiple itself carries the price. Buyers focus on the contract base: how much revenue is under recurring agreement, how long the contracts run, how concentrated the client base is, and the cancellation terms.
The workforce is the other half of the equation. A company staffed with W-2 employees and supervisors who will stay is far more transferable than one dependent on the owner to sell, schedule, and inspect every account — or one built on misclassified independent contractors, which is a diligence and liability red flag.
Cleaning Company Valuation Multiples by Profile
| Company profile | Typical multiple | Why |
|---|---|---|
| Residential maid service, owner-run | 1.75x–2.5x SDE | Higher churn, owner-dependent |
| Established residential with recurring clients | 2.5x–3x SDE | Repeat customers, supervisors in place |
| Commercial janitorial contracts | 3x–4x SDE | Recurring, contracted B2B revenue |
| Larger, diversified national/regional accounts | 4x–4.5x SDE | Scale, contract strength, management |
What Drives a Cleaning Company's Value Up or Down
What pushes the multiple up
- Recurring commercial contracts with meaningful remaining term
- A diversified client base — no single account dominating revenue
- W-2 employees and supervisors who run accounts without the owner
- Low client churn and long tenure on key accounts
- Systems and software for scheduling, inspections, and billing
What drags the multiple down
- Client concentration — one account at 30%+ of revenue
- Month-to-month, easily cancellable contracts
- The owner personally sells, schedules, and inspects everything
- High employee turnover or reliance on misclassified contractors
- Undocumented cash jobs
Cleaning Company Values in Southern California
Southern California's dense base of offices, medical buildings, retail, and industrial space generates steady demand for commercial janitorial services, supporting strong valuations for contract-based cleaners. California labor compliance is the area buyers scrutinize most: wage-and-hour rules, overtime, meal and rest breaks, and proper W-2 classification. Companies that treat cleaners as independent contractors face real reclassification risk that surfaces in diligence and lowers value. Getting labor practices clean and contracts documented before listing is the highest-return preparation a cleaning-company owner can do.
Example: Commercial Contracts vs. Residential Jobs
Two cleaning companies each earn $250,000 in SDE. Company A runs residential maid service the owner books and manages, with typical residential churn; it sells for about 2.25x — roughly $560,000. Company B holds annual janitorial contracts with a dozen office and medical buildings, staffed by W-2 crews and supervisors; it sells for 3.5x — $875,000. The recurring, contracted commercial revenue is worth far more per dollar of profit.
Frequently Asked Questions
How much is a cleaning company worth?
Most cleaning companies sell for 2x to 4x Seller's Discretionary Earnings (SDE). A company earning $250,000 in SDE typically sells for $500,000 to $1,000,000. Recurring commercial janitorial contracts command the higher multiples, while residential maid service lands lower.
Is a commercial cleaning company worth more than residential?
Generally yes. Recurring commercial janitorial contracts produce durable, contracted B2B revenue that buyers value at 3x to 4.5x SDE, while residential maid service is more transactional and higher-churn, typically 2x to 3x SDE at the same profit level.
What makes a cleaning company more valuable?
Recurring commercial contracts with meaningful remaining term, a diversified client base, W-2 employees and supervisors who run accounts without the owner, low client churn, and systems for scheduling, inspections, and billing.
What lowers the value of a cleaning company?
Client concentration in one large account, month-to-month cancellable contracts, an owner who personally sells and manages everything, high employee turnover or reliance on misclassified independent contractors, and undocumented cash work that cannot survive due diligence.
What Is Your Cleaning Company Worth?
Get a confidential valuation from a broker who understands recurring contracts, client concentration, and California labor compliance. No obligation, just a straight answer.
Request a Confidential Valuation Call or text: 818-633-3254 · 365navarro.martin@gmail.com