How to Sell A Cleaning Business?

Sell A Cleaning Business

Cleaning businesses are generally sold in one of two ways, either to an individual wanting to enter the marketplace, or, a competitor wishing to expand their existing portfolio so that they can leverage their resources. Your business is only saleable if you can show a history of continual profits, your clients are happy with the service you provide, and you are charging market rates.

Maximising Profit Before Sale Process

1. Ensure all clients are profitable.
2. Raise prices of underperforming accounts.
3. Your business will be worth more if you are the organiser, not the worker!
4. Fully systemise your business.
5. Try to increase sales 10-20% in the year preceding the sale.
6. Keep up to date with lead generation
7. Increase Client base.
8. Find ways to differentiate yourself from competitors.
9. Don’t allow labour costs to get out of hand.
10. Only take on jobs that you know will give you a good profit.
11. Review all contracts and make sure they are up to date. Diversity is the key here.
12. Drive new sales.
13. Have a favourable location.
14. Evaluate your market position.

The Sale

1. In the majority of cases, a purchaser will require a non-compete clause in the contract.
2. The value of the business increases if the website and telephone numbers are included in the purchase price.
3. Supply tax figures for the past 2-5 years.
4. Have all systems up to date and well documented
5. List all physical assets
6. List all tangible assets