A commercial cleaning or janitorial company 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 janitorial contracts are the reason.
Your tax returns almost always prove a higher number.
Upload three years of tax returns, about 15 minutes of your time. A real person reads every page and your package is delivered within 48 hours. Full refund any time before we start reviewing your documents, and after delivery, if the numbers don't hold up, we fix them or refund you.
Not ready yet? Get the checklist of every document a buyer will ask you for, free.
| 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 | 1.9 to 3.1 times owner earnings |
| Retail shop | 0.3 to 0.6 times yearly revenue | 1.8 to 3 times owner earnings |
| Other service business | 0.35 to 0.7 times yearly revenue | 1.5 to 2.5 times owner earnings |
The word on your truck matters less than who signs your checks. A janitorial company cleaning offices, medical suites, or schools on a written contract sells at the top of the 1.8 to 2.8 range. A residential maid service doing houses one at a time usually lands at the bottom, even at the same revenue. The reason is simple: a commercial account renews on a schedule, and a homeowner cancels when money gets tight.
If you run both, separate them before you sell. Show the commercial contracts on their own page with the client name, the start date, the monthly value, and the renewal terms. Buyers and their lenders price that revenue differently, and blending it into one number costs you money. One made-up janitorial company shows how a commercial cleaning business valuation works, line by line.
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. One made-up owner shows how a buyer reads that list in this janitorial company valuation, account by account.
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. One made-up store owner works through all four numbers behind what is my business worth, from the floor to the take-home.
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. If a broker will hand those papers to buyers, read what business broker fees cover before you sign the listing agreement.
See cleaning businesses for sale, with the monthly payment math for buying one, or list your cleaning business for a flat monthly fee, no commission.
Worked example: an owner sees $50,000 of profit and guesses $40,000. Add back $20,000 of owner pay and personal costs, use the market multiple of about 2 times, and the same business is worth about $140,000. The counted 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 monthly fee and take no commission.
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.
Until your next tax return is filed, which is usually about a year. Your package is built from your real returns, so it stays accurate as long as those are your most recent ones. A buyer's lender will ask for current financials anyway, so a package built on last year's returns is exactly what they expect to see. Two things age it early: a new tax year, and a material change like losing a large client, buying major equipment, or signing a new lease. If either happens before you sell, we rebuild your package from the new numbers for $99. Most sellers never need it.