The last 3 years of revenues averaged 239K with an average of 128K in earnings with the only “add back” being interest expense. 2019’s first half had 121K in revenue with 50K in earnings and the 2nd half of each year is typically stronger than the first half. In other words, they are tracking perfectly with their average. 2018 showed an uncharacteristic and temporary slow down while she was fighting a long term illness.
This cleaning business was started in 2003 by her. The company specializes in construction site cleaning both during and after the 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.
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 crews have been and will stay loyal to the company because of the consistent work flow and long term relationship. The Seller is willing to split some type of retention bonus for their crews if a Buyer is nervous about their loyalty. Seller knows this is unnecessary but understands why a Buyer would want some type of “insurance” of 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 2 times both their 3 year average earnings and their 2019 projected earnings.