How To Sell a Cleaning Business

how to sell a cleaning business

Are you thinking of selling your cleaning business, or do you want to retire and get out while you still can? Your business may have experienced a downturn, and you’re thinking about selling it. Perhaps you’d like to change your life and career.


Irrespective of your position, there are some things you need to consider and answer questions before you proceed.

Our Guide on how to sell a cleaning business.




Things such as accounting books, overhead costs, and employee records should be listed. Often, pending or existing contracts must be concluded. This includes a history of service contracts or longevity contracts.


All properties, such as equipment, cleaning equipment, vehicles, and office supplies, should also be listed. List the different types of contracts you’re working on. You want two kinds of contract inventories: small contract inventories and extensive contract inventories.


Usually, people who buy or invest in a cleaning company want to see a few smaller contracts rather than just a few big ones. They want to know the loyalty of the consumer. Besides telling them whether current workers should stay, you can also list the sales team. How many, if so, then?


Business Appraisal

Sellers often look for a transparent market pricing model. It’s not that easy, regrettably. First-time sellers often discover that their business isn’t worth what they claim. Automatic multipliers are common starting points, like three times a month’s volume, but rarely based on the actual price. It’s because the income statement at the end of the year doesn’t reflect what you’re selling. Other factors affect the price too. You can have a partnership and pay two owners’ salaries, but the buyer will pay only one manager’s salary. Maybe you’ve got two vehicles in your fleet that won’t be part of the deal.


A broker will give you a good evaluation in this area .They will review your annual statement, remove redundancies from employees or equipment. They repackage the business to show different customers what they should expect in specific circumstances.


However, it would help if you made your company more attractive. Working to increase the life of the account and the volume of sales per account helps prove the payback to the prospective owner.


It’s also essential that you brace yourself for payment. Sellers will never collect the entire purchase price with a single check. In fact, because of the tax implications, your tax accountant can advise against this.


In general, buyers pay 30-40 percent of the total selling price and pay the remainder over time. Alternatively, they can make a down payment on a fixed date and then make a final payment one year later.


Eventually, keep track of red flags throughout the sale process. Be prepared to reject a bad deal. It’s a crucial decision, and you should be 100 % confident. Take time to find a client who doesn’t rush or push your BS meter, reliable, and who you feel is going to run the company successfully.


Risk assessment

Risk assessment is unnecessary, and the prospective purchaser might want to carry out his risk assessment analysis. However, if you do it for them and thus speed up negotiating, the potential buyer would be satisfied.


You’re not going to figure out a lot with a small cleaning service. You will need to identify internal and external risks. Internal risks include the productivity of workers and waste resources, as well as energy. Any operational or technological issues will also be part of the ongoing risk assessment.


External risks are usually data-driven. They depend on market competition and economic status or the business environment.


Figure out the exit strategy


The exit plan is how you’re going to transfer your business to a third party. It’s how investors get their return on the money they’ve invested in the business. Popular exit strategies include the acquisition by another corporation, the sale of equity, or the management or staff’s purchase.


Finding a Buyer

You’ll first look within when you want to identify a buyer. Perhaps one or more of your employees can take over the company. Maybe a member of the family would like to take over? But if you hand over the business to a family member, you need to take future issues into account.


A clean break from the company will be in everyone’s best interest in this situation. However, studies have shown some unexpected advantages in working with relatives. You can take some time for a couple of months to groom them, and let them shadow you. This ensures a smooth transition and makes your future owner successful.


Maybe the company would still mean a lot to you after you leave. If so, you may remain a consultant. If you’re selling a cleaning company to workers, you should make a long-term purchase package. They’re going to take an interest in the business for sale and try to make things better because they will have a share in the company.


Take into account an ESOP (employee share ownership plan). An ESOP is a shareholding strategy for the company that allows workers to take over the business.


ESOPs are also an outstanding recruiting tool. They work great with small- and medium-sized businesses, and you can give up 1 to 100% when you are ready. You can also sell the cleaning business to the workers as a direct purchase.


Final Thoughts

We’ve mentioned a few ways to do this; however, you might not keep it in your family or sell it to your staff. The best way to do it is to use a business broker. If not, there are many websites available, including our own business for sale marketplace where you can sell your business.


Another step you can take is to place an ad in the industry publications. Selling a cleaning company isn’t too hard; it just needs a little talent. You are now armed and prepared to sell successfully. Just follow the steps above, and you’re going to feel fine selling your cleaning business.

There are many types of cleaning companies in the UK. One which is growing at a remarkable rate is gutter cleaning, the need to have your gutters cleaned on a regular basis is becoming more and more popular. Of course its very important that you protect your biggest investment against water damage.


Compare listings