Busy Denver Mostly Commercial Cleaning Service, Can be Located Anywhere
ServiceFor Sale in CO
Financial & Assets Details
About the Business
16 Year Old Mostly Commercial Cleaning Service
Expandable model and 80 percent recurring revenue
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.
The company cleans commercial properties specializing in apartments and construction cleans. Apartments are great customers because the common areas need to maintain a clean appearance because units turn over on average every 2 years and they need to be able to constantly attract new renters. The units themselves often need a deep cleaning in transition.
This company has several crews of Independent contracted cleaners. The Independently contracted cleaners use their own equipment and cleaning materials and meet all requirements to be contractors. The owner does this for many reasons but the main ones are that the cleaners make more money and by owning their own vacuums and equipment, they take better care of them while saving the company money. The cleaners are bonded and insured. The owner sets up each cleaner each day with their schedule for that day with codes, keys, and customer details/special requests, etc. The new owner does not need any industry experience and needs no special licenses or permits. She believes they will work for the new owner and like their work.
The company has a focus on customer service and is very responsive to customers’ needs. They offer a satisfaction guarantee, returning to fix or finish the job if need be. They also have an A + Better Business Bureau rating and a great reputation. This is a great base for the new owners ability to grow the company. The company follows Builder Safety Requirements with mirrors OSHA .
Marketing and Advertising: She has done very little marketing with virtually zero in advertising on the PL’s and no website. The company does not have a Facebook, Instagram, or LinkedIn page but they do have a Yellow Pages presence. The first thing that I recommend is a website and optimization so customers can find this company during searches for the services they provide.
Growth Potential: This is a company that needs a hands on owner until they get bigger. The owner believes the best opportunity is to call on builders and apartment property managers who often have more than one building under their control. It would be easy to grow this into a much more valuable operation by increasing its size. The company has no dedicated sales people whom can be added to work their list of all current and older customers. Most growth comes from customer referrals. The owner also has an advantage by not having to pay franchise fees like some of the more expensive national companies franchisees have. They can also grow by starting to clean residential homes and specialize in homes that require cleaning at least one time a month as a maid service. They can also offer window cleaning and carpet cleaning.
Location: The location is in the owners house and can be anywhere in Denver Metro since the cleaners and customers don’t come to an office.
Other Considerations: She uses a CPA who uses QuickBooks which are in order and up to date. There is a van and some supplies that will be included in the sale. The manager will help ensure a smooth transition of the business. The owner believes that the business will grow by just being more engaged.
The seller is willing to carry a small portion of the sales price and will offer full warranties and further states there are not any legal or other issues of any kind that they are aware of that are pending. This is a turnkey profitable business. The model is just waiting for a new owner to step into it. He is selling because he realizes this business has suffered from having an absentee owner.
Plus, Colorado is the best State in the country to own a business based on Denver’s consistent growth and increasing wealth of its population.
Jeff Chapman Eisnaugle
This is prepared by Business Broker Colorado LLC with Company Broker Group LLC being the managing broker with information provided by the Seller. It was not created by the seller and neither the Broker or the Seller are responsible for its accuracy. Buyers are responsible for their own due diligence. Neither the Broker or the Seller will indemnify or guarantee any forward looking statements or projections.
Different Brokerage relationships are available which include Seller agency, buyer agency, or transaction – brokerage.
Brokerage disclosure to Buyer or Tenant of Property. Definition of working relationships.
Seller's Agent: a seller's agent works solely on behalf of the seller to promote the interests of the seller with the utmost good faith, loyalty, and fidelity. The agent negotiates on behalf of and ask as an advocate for the seller. The seller's agent must disclose to potential buyers all adverse material facts actually known by the seller's agent about the business/property. A separate written listing agreement is required which sets forth the duties and obligations of the broker and the seller.
Buyer’s Agent: a buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of an accident advocate for the buyer. The buyer’s agent must disclose to all potential sellers all adverse material facts actually known by the buyer’s agent, including the buyer’s financial ability to perform the terms of the transaction. A separate written by a Buyer agreement is required which sets forth the duties and obligations of the broker and the buyer.
Transaction broker: the transaction broker assist the buyer or seller or both throughout a real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers and assisting parties with any contracts, including the closing of the transaction, without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care and the performance of any oral or written agreement, and must make the same disclosures as agents about all adverse material facts actually known by the transaction – broker concerning the property or a buyer's financial ability to perform the terms of a transaction and whether the buyer intends to occupy the property. No written agreement is required.
Business Broker Colorado LLC and Company Broker Group, LLC, and Jeff Chapman Eisnaugle will be operating solely as a “Seller Agent” in all transactions.
Growth & Expansion
: This is a company that needs a hands on owner until they get bigger. The owner believes the best opportunity is to call on builders and apartment property managers who often have more than one building under their control. It would be easy to grow this into a much more valuable operation by increasing its size. The company has no dedicated sales people whom can be added to work their list of all current and older customers. Most growth comes from customer referrals. The owner also has an advantage by not having to pay franchise fees like some of the more expensive national companies franchisees have. They can also grow by starting to clean residential homes and specialize in homes that require cleaning at least one time a month as a maid service. They can also offer window cleaning and carpet cleaning.
The company has a focus on customer service and is very responsive to customers’ needs. They offer a satisfaction guarantee, returning to fix or finish the job if need be. They also have an A + Better Business Bureau rating and a great reputation. This is a great base for the new owners ability to grow the company.
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 /
Support & Training
Will stay as long as needed
Reason for Selling: