A cleaning business typically sells for 1.8 to 2.8 times the owner's true annual earnings. On revenue alone, most cleaning companies trade between 0.5 and 0.9 times yearly sales. Those are some of the strongest multiples on main street, and recurring contracts are the reason.
Most cleaning business sales land at 1.8 to 2.8 times what the owner really makes in a year. See where you land.
Your tax returns almost always prove a higher number. Get it proven.
| Business type | Revenue multiple | Owner-earnings (SDE) multiple |
|---|---|---|
| Hair salon / Barbershop | 0.35 to 0.65 times yearly revenue | 1.5 to 2.5 times owner earnings |
| Cleaning service | 0.5 to 0.9 times yearly revenue | 1.8 to 2.8 times owner earnings |
| Landscaping / Lawn care | 0.45 to 0.85 times yearly revenue | 1.8 to 2.8 times owner earnings |
| Restaurant / Cafe | 0.25 to 0.45 times yearly revenue | 1.3 to 2.2 times owner earnings |
| Auto repair / Detailing | 0.4 to 0.75 times yearly revenue | 1.7 to 2.6 times owner earnings |
| Retail shop | 0.3 to 0.6 times yearly revenue | 1.5 to 2.3 times owner earnings |
| Other service business | 0.35 to 0.7 times yearly revenue | 1.5 to 2.5 times owner earnings |
Buyers pay more for money that shows up on a schedule. A cleaning company with weekly and monthly accounts has exactly that. The buyer can see next month's income before they even own the business. That certainty is what pushes cleaning multiples above most other service trades.
The earnings math works the same here as everywhere. True owner earnings means salary, plus profit, plus the personal costs the business covers. Count every add-back before you multiply. Most owners skip this step, and most owners guess low because of it.
Three years of business tax returns come first. SBA lenders require three years of business tax returns to finance a buyer. Then a client list with start dates and cleaning frequency, your payroll records, and proof of insurance and bonding. Buyers of cleaning companies almost always ask about insurance early, so have it ready.
If you have route sheets or job checklists, include them. They prove the business runs on a system, not on your memory. Systems are what a buyer is really paying for.
A salon owner in central Pennsylvania guessed her business was worth $35,000. Her own tax returns supported $95,000. Different trade, same lesson: the proven number beats the guess. See what goes in the package.
Most main-street businesses sell for 1.5 to 2.5 times the owner's true yearly earnings, or their replacement value, whichever is higher and can be proven. True earnings means salary plus profit plus the personal things the business pays for. Most owners forget those add-backs count, so most owners guess low.
If your business will sell for more than about $500,000, a broker probably makes sense. Below that, most brokers say no, or their minimums eat the deal. Business brokers typically charge 8 to 12% commission with $10,000 to $25,000 minimum fees. We charge one flat fee and you keep 100% of your sale.
Tax returns, a profit and loss statement, your lease, payroll records, and an equipment list. Start with the returns. We tell you what is missing and why each piece adds dollars to your price.
No. Most small business sales use seller financing or an SBA loan. Your package includes the payment math, so you can show your buyer exactly what they would pay each month.