The owner is willing to carry 25% of the note for this commercial cleaning company! Because there is no physical location for this business, the overhead is extremely low. Currently, two storage units are being used to store the equipment, which employees are able to access as needed. The units run about $280/month and could be moved if needed as well. The business has low turnover with clients, which is not the norm for this industry. They have one client who has been with them for 15+ years, and the majority of the others have been there for several years.
With 25-30 employees at any given time, there is no shortage of hands available to take on jobs. There is a manager on staff, who has been with the company for 5 years. She handles the majority of the daily operations and would be able to take on the owner’s responsibilities with a bit of training as well. The current owner spends less than 10 hours/week, which largely consists of running payroll, tax work, and hiring when needed.
Everything needed to run the business is included in the asking price. Totaling about $41,000, the assets include a van, 3 carpet extractors, 1 automatic floor scrubber, 2 golf carts, 7 floor burnishers, along with general cleaning supplies and vacuums. These are all low-maintenance items, keeping the CapEx to a minimum each year. The company currently focuses strictly on general commercial cleaning, with some carpet cleaning, stripping, and floor waxing. Growth has not been the focus, as the seller is looking at retirement, but he feels that there is unlimited growth potential. Work has been turned away, and it would be an easy addition to get into smoke/fire/water restoration as a new service.
At a purchase price of $1,190,000, a 15% down payment of $178,500 returns $183,182 in the first year! This business is perfectly positioned for transitioning to a new owner to continue the legacy.
