Cleaning and janitorial companies sell on recurring contracts, not equipment. Here is how to value one and exit confidentially.
A cleaning company, residential maid service or commercial janitorial, is valued almost entirely on its recurring contracts and customer retention. Because the business is light on hard assets, the value is the book of repeat clients and how long they stay.
Contract terms, customer concentration, and staffing are the swing factors. Commercial janitorial contracts with solid terms are valuable but can hinge on client consent to assign, and heavy reliance on one or two big accounts is a risk. Reliable, retained staff and low churn support the price.
Most buyers value a cleaning company on a multiple of Seller's Discretionary Earnings (SDE), your profit plus the owner's salary and the personal expenses run through the business.
Cleaning and janitorial companies are typically valued at about 2 to 3.5 times SDE, with recurring commercial contracts, low customer concentration, and low churn at the higher end. I rebuild SDE with proper add-backs and present your contract base and retention so the recurring revenue drives the number.
A broker's job is to rebuild your SDE with the right add-backs so your true earning power, not just the tax-return bottom line, sets the price. Get a free, confidential valuation →
Selling a cleaning company works best when no one finds out until the right moment. Employees, competitors, customers, and suppliers learning early is the number-one fear owners have, and for good reason, it can cost you staff and revenue mid-sale. I market every business with a blind profile: a teaser that describes the opportunity, the numbers, and the area only in general terms, and never names your business. Every buyer is screened and signs a non-disclosure agreement before they learn which business is for sale. Your team keeps working, your customers keep coming, and your sale stays private until it closes.
Get a free, confidential valuation, built on your real numbers, with no obligation.
Request My ValuationRecurring contracts, diversified customers, and low churn. A book spread across many stable, contracted clients is worth more than one concentrated in a few accounts. We present your contracts and retention to show durable revenue.
Many do, but some include change-of-ownership or assignment clauses requiring client consent. We review your contracts early and address any consent needs so nothing surprises the deal.
Yes. We market with a blind profile and NDAs so clients and staff are not disturbed, protecting your contracts through the process.
Martin Navarro is a California business broker, DRE #02372118, and a U.S. Marine Corps veteran. He is bilingual in English and Spanish and a member of the California Association of Business Brokers (CABB), the International Business Brokers Association (IBBA), ACG Los Angeles (Association for Corporate Growth), and the Santa Clarita Valley Chamber of Commerce. Gas stations, car washes, self-storage, and other businesses with real estate are a specialty within his full-service brokerage practice. Martin serves business owners across Los Angeles, the Inland Empire, Ventura, and Orange County, and throughout Southern California.
Tell me about your cleaning company. Every inquiry is confidential and there is no obligation.