Business for Sale, Would I Buy It? | Commercial Cleaning Company

Video Transcript:

Alright in this episode of “Would I Buy This Business”, we have a commercial cleaning and janitorial business. The stats, the asking price is 1.2 million. Gross revenue of 1.361 million. Cash flow 424K. That’s a pretty good cash flow for this kind of business. Generally, once you get to a certain size and volume they do pretty well. It’s recurring revenue, right? People are signing up for ongoing contracts. And they don’t always last that long. People are constantly trying to take contracts from you. It’s a very cutthroat kind of business. So that does keep somewhat of a lid on margins and growth. There’s a lot of you know churn or can be. Or buildings get sold, a new property manager comes in, and they use a different contract for cleaning. But I mean in general these can be good businesses. Steady cash flow. The, you know, need for cleaning will never go away. It’s probably not gonna be replaced by robots anytime soon. Or Amazon is not gonna take over the janitorial cleaning business. So I think it’s a good long-term simple-to-run business. And the biggest challenges with it are getting in keeping contracts and then staffing, right? Finding workers who can come in and do a decent job, and not steal stuff, and not cause damage, and not flake on you. That’s the single biggest challenge with this. But the price is right. It’s a little under 3 x multiple. So that’s pretty reasonable for this kind of business. And says it was established in 2012 so it’s got a good 12-year history. So that’s solid. You know, definitely one if I was in this space, I would certainly be interested in checking this out. And I think my plan would be buy it, learn it, grow it, and then continue to add more through acquisitions to accelerate the growth. But yeah this could be a very solid business for somebody.

More about this series, CapForge’s owner and founder gives us a little behind-the-scenes on what a good or bad business would be. CapForge helps tons of clients either buy or sell business and Matt was a business broker before starting CapForge. Let’s look at some of these businesses up for sale and see if Matt would be interested in buying them.