How to Sell a Cleaning Company: Owner's Exit Guide
Introduction: Why Selling Strategy Matters When Exiting Your Cleaning Company
Let us guess—your email inbox is full of unsolicited offers to buy your cleaning company?
You're not alone. Commercial cleaning and janitorial businesses have become highly attractive to buyers—especially private equity groups and regional consolidators looking to roll up recurring revenue service models.
Whether you're preparing for retirement, looking for a new opportunity, or just curious about your company’s value, this guide walks you through how to sell a cleaning company the right way.
Navigate Your Exit with Confidence 🚀
Introducing the Exit Navigator
Whether you're 12 months or 12 weeks from exit, our Exit Navigator gives you a step-by-step roadmap to prepare, position, and sell your tech company at maximum value. Built for founders in the $2M–$20M revenue range, this free download includes:
A deal-readiness checklist
Tips for reducing diligence friction
Red-flag risk items buyers spot quickly
Valuation drivers by business model
A 6-phase roadmap from prep to post-close
Make your exit a strategy—not a scramble.
Book your free assessment call HERE or download our Million Dollar Exit Guide for free below 👇
Why Buyers Want Cleaning Companies
Buyers love cleaning companies for one major reason: predictable revenue.
Most established cleaning companies have:
Long-term janitorial contracts with commercial clients
Recurring night/weekend service schedules
Low customer acquisition costs through referrals
High retention rates if the team delivers consistently
These traits make cleaning businesses more predictable than many other home services or B2B businesses—especially when paired with professional management and reliable financials.
But to maximize value, you’ll need to prepare beyond just solid revenues.
Step 1: Know What Your Cleaning Company Is Worth
Cleaning companies are typically valued using a multiple of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
Buyers evaluate:
Clean, CPA-prepared financial records
Recurring service contracts (vs one-off jobs)
Low customer concentration (no single client over 15%)
Systems and staff in place to run daily ops
For companies with $500K+ in EBITDA, valuations typically fall in the 3x to 5x range. Higher multiples (6x+) are possible if the business shows strong growth, clean books, and minimal owner involvement.
Valuation Rules of Thumb
Want to know the Gold Standards buyers are looking for? Download our Business Exit Guide HERE.
Step 2: Prepare Financials and Contracts
Many cleaning businesses suffer from messy or inconsistent bookkeeping—which kills deals fast.
Before going to market:
Get your books reviewed or compiled by a CPA
Ensure 3+ years of clean financials with consistent margins
Align internal financials with filed tax returns
In addition, your customer contracts should be:
Written and current
Renewable or long-term (not just month-to-month)
Clear on pricing, scope of work, and cancellation terms
Long-term commercial contracts are a major driver of valuation.
Step 3: Reduce Owner Dependence
If you’re still the one quoting new clients, scheduling crews, and answering complaints… you’re the business. And that’s risky for a buyer.
To maximize value, start delegating now:
Assign client relationships to account managers
Delegate scheduling and ops to crew leads or dispatchers
Shift quoting to a sales team or estimators
Move payroll, billing, and collections off your plate
The more your business runs without you, the more attractive it becomes.
Step 4: Work with an M&A Advisor Who Knows the Industry
Selling a business is complex. It’s not just about finding a buyer—it’s about positioning your company, negotiating deal terms, protecting confidentiality, and driving the deal across the finish line.
The right M&A advisor will:
Create a professional package that highlights your strengths
Run a confidential process that doesn’t spook employees or clients
Bring in multiple buyers to create competitive tension
Negotiate not just price, but structure (earnouts, holdbacks, training periods)
Manage due diligence and coordinate attorneys, CPAs, and buyers
Breakwater M&A specializes in cleaning and service businesses doing $2M–$20M in revenue with $350K+ EBITDA. Our seller-first approach has helped dozens of owners walk away with better deals and smoother transitions.
Step 5: Plan for a Smooth Transition
Buyers will want your help post-close. Whether that’s 30 days or 12 months depends on how prepared your company is.
To shorten the timeline and protect your earnout:
Create SOPs for all key processes
Lock in key team members with bonuses or contracts
Set expectations for your training and hand-off period
Buyers want consistency. The more you plan for that now, the smoother (and more valuable) your exit will be.
Quick Takeaways
Cleaning companies with $500K+ EBITDA and recurring revenue are highly attractive
Clean financials and long-term client contracts are essential
Reducing owner involvement increases valuation and buyer interest
Working with a qualified M&A advisor creates competitive offers and protects your downside
A well-planned transition period protects your deal and reputation
Final Thoughts: Own Your Exit
Selling your cleaning company could be the most important financial event of your life. Whether you're ready now or preparing for the future, Breakwater can help you do it right.
👉 Let’s talk about your business and how to prepare for a high-impact exit.
Schedule a confidential call with our team HERE.
FAQs About Selling With Breakwater
How Do M&A Fees Work?
At Breakwater M&A, success fees typically range from 3% to 10%, depending on the size of your business—the larger the business, the lower the percentage. We also charge a modest upfront or monthly fee, which is credited against the success fee when the deal closes. This upfront investment ensures mutual commitment, as we dedicate hundreds of hours to each engagement.
How Is a Business Valued?
Business valuations are typically based on a multiple of the company’s profit. However, calculating that profit goes beyond simple taxable income. We use financial adjustments and industry benchmarks to ensure you understand your true valuation—even if you're not ready to sell today.
What Is EBITDA and Why Is It Important?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It’s a standard metric used to measure a business’s profitability and forms the foundation of most M&A valuations. Accurate EBITDA calculation is crucial when planning an exit or attracting buyers.
What Is the Typical Timeline to Sell a Business?
The process of selling a business generally takes 6 to 8 months, though more complex deals can stretch beyond 12 months. Timing can vary based on industry, deal size, buyer pool, and how prepared your business is at the outset.
Why Should I Hire an M&A Advisor Instead of Selling on My Own?
While it’s possible to sell your business independently, M&A advisors bring structure, buyer access, negotiation leverage, and experience that often results in higher valuations and smoother deals. Even if buyers are approaching you directly, professional representation ensures you don’t leave value on the table.
How Do I Prepare My Business for Sale?
Strong preparation is the foundation of a successful exit. This includes having clean financials, updated contracts, and reducing any operational dependency on the owner. A well-prepared business is not only more attractive to buyers but also commands higher value.
What Industries Does Breakwater M&A Specialize In?
While industry-agnostic, we specialize in helping service-based and software businesses with $1M–$20M in revenue and strong profitability. These are typically founder-led businesses with clean operations and growth potential.
Can You Provide Detailed Case Studies of Similar Businesses?
Yes, we have a library of both public and private case studies. These highlight real-world examples of how we’ve helped businesses navigate successful exits. We’re happy to share examples tailored to your industry or deal size.
What Is Your Experience and Professional Background in M&A?
Since 2019, Breakwater has closed over 50 transactions representing more than $150 million in total deal value. Our team brings a mix of entrepreneurial and investment banking experience, giving us insight from both sides of the table.
How Do You Determine Business Valuation?
Valuation is primarily based on cash flow and profitability, with industry trends and business model playing important roles. Every business is different, and our team customizes valuation models to reflect your specific situation.
How Do You Identify and Approach Potential Buyers?
We use a proprietary buyer database along with advanced tools to identify and vet strategic, financial, and institutional buyers. We also research your competitive landscape to uncover high-value buyers who may not be actively in the market—but are a perfect fit.
What Is a Business Exit Strategy?
An exit strategy is a structured plan for transitioning ownership while maximizing value. We work with business owners to develop a strategy that aligns with personal and financial goals—whether that's retirement, a new venture, or something else.
What Are Common Mistakes When Selling a Business?
Common missteps include inadequate preparation, emotional decision-making, poor valuation assumptions, and revealing too much too soon to buyers. Our process is designed to avoid these pitfalls and keep deals on track.
How Do I Know If It's the Right Time to Sell My Business?
The “right time” is different for every founder. It’s often driven by personal readiness—retirement, burnout, or a shift in priorities—as well as market timing. We help you weigh those factors objectively and make an informed decision.
Does Breakwater M&A Provide Resources for First-Time Sellers?
Yes, we specialize in working with first-time sellers. We provide educational resources, step-by-step guidance, and a clear roadmap so you’re never in the dark throughout the M&A journey.
Related Reads:
How to Find the Right M&A Advisor
A step-by-step guide to choosing the right advisor to maximize value, reduce stress, and avoid costly mistakes.
How to Sell a Business with $500K in EBITDA or More
Learn how buyers assess profitability—and how to position your $5M+ revenue business for premium valuation.
The Million Dollar Exit Guide - Part 1
In this 6 part series, learn how to build your own million dollar exit with actionable steps you can take in planning the exit of your business (it’s never too early to exit plan).
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