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66/100· Good Demo Listing

Commercial Cleaning & Janitorial Company

Phoenix, Arizona, USA Commercial Cleaning Established 2013 26 employees

Business VerifiedRevenue Verified

Asking price

$690,000

WhatBiz estimated range $688,000 – $1,016,000

Analyze this deal

Business overview

Nearly all revenue is contracted monthly service with 12-month agreements and automatic renewal terms. Supervisors manage nightly crews and the owner focuses on sales and client relationships.

Asking price
$690,000
Revenue (TTM)
$1,450,000
SDE
$245,000
EBITDA
$210,000
SDE multiple
2.82x
Cash-on-cash (unlevered)
35.5%
Recurring revenue
88.0%
Largest customer
17.0%

WhatBiz Score™ breakdown

Overall 66/100 — Good. Each dimension is scored independently and weighted.

Profitability50

Seller's discretionary earnings are 16.9% of revenue.

Valuation62

Asking price is 2.82× SDE compared with a common small-business range of roughly 2×–4×.

Financial Health58

13 years of operating history with a 14.5% earnings margin.

Growth Potential49

Reported revenue trend of +7% year over year.

Market Outlook78

Category-level demand outlook based on WhatBiz industry model (sample data).

Owner Independence76

Business is described as semi absentee with 26 employees.

Customer Concentration Risk70

Largest customer represents about 17% of revenue.

Financing Potential100

Seller indicates financing is available (about 25% seller-carried).

Scalability76

88% of revenue is recurring or contracted.

AI / Technology Disruption Risk85

Estimated exposure to automation and AI substitution in this category.

Valuation context

Comparable SDE multiples of 2.79x – 4.05x for Commercial Cleaning produce an estimated range of $688,000 – $1,016,000.

  • Recurring revenue: 88% of revenue is recurring or contracted, which buyers pay a premium for.
  • Management in place: A business that runs without daily owner labour is worth more to most buyers.
  • Operating history: 13 years of history reduces perceived risk.
What's included
  • Equipment and floor machines
  • Service contracts
  • 2 supply vans
  • Scheduling and timekeeping systems
Growth opportunities
  • Add floor care and window cleaning as higher-margin add-ons
  • Target medical facilities requiring specialized protocols
  • Systematize outbound sales — currently referral driven
Reason for sale
Owner wants to focus on a separate facilities-supply business.
Competition
Many small operators; differentiated by contract retention and supervision.

What a buyer should check here

Specific questions to raise with the seller for this listing, based on its reported figures.

  1. Confirm the $245,000 in owner earnings

    Ask for three years of tax returns and the add-back schedule line by line. Owner salary and genuine one-off costs are fair add-backs; ongoing vehicle, phone, insurance or family payroll usually are not.

  2. Price is inside the estimated range (2.82x SDE)

    WhatBiz estimates $688,000 – $1,016,000 for a commercial cleaning business with these figures. Ask the seller which comparable sales support their asking price.

  3. Verify the customer mix is as diversified as reported

    The largest customer is reported at 17.0% of revenue. Ask for a revenue-by-customer report for the last 24 months to confirm it.

  4. Test the 88.0% of recurring revenue

    Ask for the contract or subscription list with start dates, renewal terms, churn over the last two years, and whether agreements are assignable.

  5. Plan for the owner's day-to-day role

    The owner is reported as semi-absentee. Price a replacement salary for the hours they work, and check whether any licence, certification or key relationship is held personally.

  6. Check the 26-person team and payroll

    Request tenure, wages against local market rates, and any certification or licence held by individual staff. Agree stay bonuses for key people before closing, not after.

  7. Structure the 25% seller note

    Seller financing keeps the previous owner invested in a clean handover. Negotiate the term, interest rate and any performance offset in the same conversation as the price.

  8. Review the leased premises and the lease

    Check remaining term, renewal options, rent escalations, and whether the landlord will assign the lease to you. A short lease on a location-dependent business is a real risk.

This is demo data provided for product demonstration. Figures are illustrative, are not verified, and are not an offer to sell a business. WhatBiz analysis is educational and is not financial, legal, tax or investment advice.

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