How to Sell Your Cleaning Business: The Complete Guide

Most cleaning businesses sell for 1.5 to 3 times their yearly profit. A business earning $100,000 per year in profit typically sells for $150,000 to $300,000. This guide covers valuation, finding buyers, preparing documents, and every step of the sale process.

How Much Is Your Cleaning Business Worth?

Your cleaning business is worth a multiple of its yearly profit. The exact multiple depends on several things. Size, client base, and how the business runs all affect the price.

Most cleaning businesses sell for 1.5 to 3 times yearly profit. Some sell for more if they have strong contracts.

The Basic Valuation Formula

Start with your total revenue. Then subtract all expenses. The number left is your owner benefit, or what the owner takes home.

Multiply that number by 1.5 to 3. The result is your estimated sale price.

A Simple Example

Say your business earns $300,000 per year in revenue. Your total expenses are $180,000. That leaves $120,000 in owner benefit.

At a 2 times multiple, the business is worth $240,000. At a 3 times multiple, it is worth $360,000.

What Factors Affect Cleaning Business Valuation?

Not all cleaning businesses sell for the same multiple. Several things push your price up or down.

Factors That Increase Value

• Recurring revenue — clients on weekly or monthly schedules are worth more
• Signed contracts — commercial contracts give buyers certainty
• Trained staff — a team that works without the owner is very valuable
• Clean financial records — clear books make buyers feel safe
• Strong online reviews — a good reputation transfers to the new owner
• Systems in place — scheduling software, checklists, and standard procedures add value

Factors That Decrease Value

• Owner does the cleaning — buyers want a business, not a job
• No written contracts — clients can leave at any time
• Messy books — cash payments without records lower trust
• High staff turnover — constant hiring is a red flag
• One big client — losing that client would hurt the business

Valuation Multiples by Business Type

How Do You Prepare Your Cleaning Business for Sale?

Preparation is the most important step. A well-prepared business sells faster and for more money.

Start preparing at least 12 months before you want to sell.

Clean Up Your Finances

Separate personal and business expenses completely. Move all payments through your business bank account. Stop running personal expenses through the business.

Buyers look at your last three years of financial records. Make sure every dollar is tracked. Learn more about clean record-keeping in our taxes and deductions guide.

Build Systems That Run Without You

Write down every process your business uses. Create step-by-step guides for cleaning, scheduling, and billing. Train your team to follow these guides.

A business that runs without the owner is worth much more. This is the single biggest thing you can do.

Lock In Contracts

Move clients from handshake deals to signed agreements. Even simple one-page contracts help. Contracts show the buyer that revenue will continue.

Reduce Client Concentration

No single client should be more than 15 percent of revenue. If one client makes up too much, grow your other accounts first.

Preparation Checklist

When Is the Best Time to Sell a Cleaning Business?

Timing affects your sale price. Sell when the business is growing, not shrinking.

Sell When Revenue Is Climbing

Buyers pay more for a business with rising revenue. Two or three years of steady growth is ideal. A flat or declining business sells for less.

Sell When the Economy Is Strong

More buyers look for businesses when the economy is good. Lending is easier, too. Buyers can get loans to pay you.

Sell When You Are Ready, Not Burned Out

Owners who wait too long often let the business slide. Sell while you still have energy to prepare well. A tired owner often accepts a lower price.

Seasonal Timing

Spring and early summer are the best times to list. Business activity is high during these months. Buyers can see the business at its peak.

How Do You Find Buyers for Your Cleaning Business?

Finding the right buyer takes time. You want someone who can pay and will take care of the business.

Hire a Business Broker

A broker finds buyers, screens them, and handles talks. They charge 8 to 12 percent of the sale price. Good brokers often get a higher price than owners selling alone.

List on Business-for-Sale Websites

Websites like BizBuySell and BusinessBroker.net attract active buyers. Create a listing that highlights your revenue, profit, and client count. Do not share your business name in the listing.

Ask People in Your Network

Other cleaning business owners may want to grow by buying your company. Suppliers and industry contacts may know interested buyers too.

Consider Your Employees

A trusted manager may want to buy the business. They already know the clients and the work. You can offer a payment plan to make it easier for them.

Types of Buyers

• Individual buyers — people looking to own their first business
• Competitor companies — they buy to grow their client base
• Current employees — they know the work and clients already
• Investment groups — they buy businesses that run on their own

What Documents Do Buyers Want to See?

Buyers will review your entire business before they buy. Have these documents ready to go.

Financial Documents

• Profit and loss statements — last three years minimum
• Tax returns — last three years of business tax returns
• Bank statements — last 12 months at minimum
• List of all monthly expenses — rent, supplies, insurance, payroll
• Revenue by client — shows how spread out your income is

Business Documents

• Client contracts and agreements — all signed deals
• Employee list with pay rates — every worker and what they earn
• Equipment and vehicle list — what the buyer will receive
• Insurance policies — current coverage details
• Business licenses and permits — proof everything is legal
• Lease agreements — for your office, storage, or warehouse

Operations Documents

• Written cleaning procedures — step-by-step guides for every service
• Employee training materials — how you train new hires
• Client schedule — who gets cleaned and when
• Vendor and supplier contacts — where you buy supplies

How Does the Sale Process Work Step by Step?

Selling a business follows a clear process. Here is what to expect from start to finish.

Sale Timeline

Step 1: Prepare Your Business

Clean your finances and create standard procedures. Gather every document a buyer will want. This is the most important step.

Step 2: Set Your Asking Price

Use the valuation methods above. You can also hire a professional appraiser. A fair asking price attracts more serious buyers.

Step 3: Find and Screen Buyers

List the business or hire a broker. Ask every buyer to sign a non-disclosure agreement before sharing details. This protects your business while it is still for sale.

Step 4: Negotiate the Deal

Agree on the total price and how the buyer will pay. Many deals include a down payment plus monthly payments over time. Some buyers pay all cash.

Step 5: Due Diligence

The buyer reviews your records to verify everything. Be honest and provide every document they request. Surprises during this step can kill the deal.

Step 6: Close and Transition

A lawyer drafts the final sale agreement. Both sides sign at closing. Then you train the new owner for the agreed transition period.

What Are Common Mistakes When Selling a Cleaning Business?

Many owners lose money by making these mistakes. Avoid them to get the best price.

Mistake 1: Not Preparing Early Enough

Rushing the sale leads to a lower price. Start preparing 12 months before you list. Clean books and good systems take time to build.

Mistake 2: Overpricing the Business

An inflated price scares away serious buyers. Price your business based on real profit numbers. Emotional attachment is not a valid reason to charge more.

Mistake 3: Telling Employees Too Early

Workers may leave if they hear the business is for sale. Wait until the buyer signs a letter of intent. Then share the news with a clear transition plan.

Mistake 4: Ignoring Tax Planning

The way you structure the sale affects your tax bill. Talk to an accountant before you agree to terms. An asset sale and a stock sale have different tax results.

Mistake 5: Skipping the Non-Disclosure Agreement

Without a signed agreement, buyers can share your secrets. They could even use your client list to compete with you. Always require a signed agreement before sharing any details.

Mistake 6: Not Getting Professional Help

Selling a business is not like selling a house. You need a business broker, a lawyer, and an accountant. Their fees pay for themselves in a higher sale price.