16 Year Old Mostly Commercial Cleaning Company-Denver Metro Area but can be Located Anywhere
The first 6 months of revenues for 2020 were 153K with earnings of 77K. 2019’s revenues were 375K with 127K in earnings. 2020’s earnings are trending 25% higher than the same period for 2019. 2018 showed an uncharacteristic and one time slow down while she was listed with a different Broker who indicated this would sell quickly and she took her foot off of the gas because of this and the fact that she was increasingly sick. In early, 2019, she got back to running the company as she always had again and the numbers are all growing again because of this.
This cleaning business was started in 2003 by her. The company specializes in construction site cleaning both during and after construction. They clean virtually all types of construction sites and also offer debris removal. They clean the entire site including but not limited to vacuuming, debris removal, windows, rough clean, ventilation, walls/floors/ceilings, fixtures, appliances, etc. There is a lot of cleaning that takes place on construction sites from the original demolition/ground breaking to the “final clean” which is often a year or longer after their Construction clean. They also provide services for regular office cleaning including medical offices, window cleaning, move in/move out, various floor maintenance/cleaning, and apartment/commercial buildings. The sales price has been set 220K which is less than 1 ¾ times the 2019 earnings. She has had a very good start to 2020 which is tracking ahead of 2019 through March. They are still cleaning as an “essential service” for the construction industry.
COVID 19 has not hurt her business which is considered an essential business because they are helping to keep things clean and mostly work for the construction industry that is mostly still working also. They don’t have the training or equipment for official COVID 19 cleaning for medical facilities but a new owner could get it and start a medical side/commercial/residential COVID 19 cleaning service. If one person at work or a family member at home thinks they have it or test positive, this may become very popular not just now but in the future if this comes around again.
Most of their cleaning takes place Monday through Friday 6AM to 5PM. They will help their clients in a crunch after hours including evening and weekends. Their employees are independent contractors which is common for cleaning companies. It is also common that the “subs” provide their own supplies and equipment. The company is run from the home of the owner and the only assets are a work van and some cleaning supplies. The individual “subs” have been and will stay loyal to the company because of the consistent work flow and long term relationship. The Seller is willing to consider a split some type of retention bonus for their subs if a Buyer is nervous about their loyalty.
The business has a customer base of approximately 6 customers which create a strong base of revenues. Jobs are both bid and negotiated and priced by the square foot and/or custom bids for known customers. Many commercial builders offer the opportunity for cleaning companies to “bid” their services directly on the builders websites. This business is a great buy based on the 80 percent recurring revenues, their A+ Better Business Bureau reputation, and great referrals from customers.
Location: Can be located anywhere. The Buyer set it up anywhere they would like to. They service the entire Denver Metro Area / Boulder/ Fort Collins / Mt Area / Co Spring /
Sales Price: The sales price is 220K and INCLUDES everything. This means the business is priced at less than 1 3/4 times her 2019 earnings.