List Price: $742,000
Owner Profit/Cash Flow
Sales Trends: YOY Growth of Gross Sales of over $100,000
Profit Margin: 19%
Multiple: 3.5*Multiples range from 1-5, with the average being 3
Valuation: 2015 CashFlow x Multiple = Price
$212,203 x 3.5 = $742,710
This janitorial and maintenance service provider works to clean and maintain large office complexes. Services provided include Construction Site Cleans, Office Cleaning,Floor Care, Mowing, Snow Removal, and more. The work is evenly split between weekly and quarterly cleanings for commercial complexes. These jobs are located in and across the states of Nebraska, Iowa, and South Dakota.
Included in the sale will be all equipment currently used for jobs at all sites. This includes lawnmowers, floor scrubbers, many vans and trucks, and other miscellaneous equipment. A current Accounts Receivable statement shows current accounts are over $80,000. Even with so much business, there is room to expand and increase marketing and outreach efforts to bring in more business.
After 20 years of existence, this company has a solid reputation among the janitorial industry.The owner is responsible for the accounting side of business as well as occasional management and general business operations. There are 2 Managers who are bilingual, 1 Night Supervisor, and 30-35 Laborers. The typical office hours are 8AM – 5PM, but some jobs require hours anywhere from 5AM – 12AM.
After all debt services are paid, a buyer can expect to receive a net operating income(profit) of $94,086 in the first year. This has the potential to be greater if advertising and marketing are increased even minimally.
Assets Included in Purchase: $252,195
Equipment: $147,645;3 Lawn Mowers, Kawasaki Propane Burnisher, 2 Floor Scrubbers, 2 Swing Machines, Vacuums, Miscellaneous Janitorial and Office Equipment, Snow Plow
Vehicles: $104,550;4 Chevy Express Vans, 2 Chevy Silverados, 2 Dodge Grand Caravans, Chevy Avalanche, GMC Sonoma, Ford Focus, Honda Fit Sport, Ford Freestar, Chevy AstroVan, and Chevy Lumina
Intangible Assets: Well Established Reputation in 3 States
Inventory: Varying Amounts of Cleaning Supplies
*amounts may vary
Location: Eastern, Nebraska
Service Area: Nebraska, Iowa, and South Dakota
Demographics: 50%Weekly Commercial Cleanings, 50% Larger Quarterly Commercial Cleanings
Building: 7,500 sq.ft. Office with 3,000 sq. ft. Shop Area
Reason for Selling: Pursuing Other Interests
Employees: 2Managers, 1 Night Supervisor (Quality Control), 30-35 Laborers
Office Hours: Monday– Friday: 8AM – 5PM
Seller Training Period: 90 Days
Growth Opportunities: Increase Outreach and Marketing to Attract More Jobs
Current Owner’s Responsibilities: Quickbooks Accounting, General Management, and Occasional Supply Delivery, Bidding, and Customer Service
Purchase Price: $742,000
10% Buyer Down Payment: $74,200
10% Seller Financing: $74,200
80% Bank Loan: $593,600
After all debt services are paid a buyer can expect a Net Operating Income (Profit) of $94,086.
For a detailed financial package, please contact Cortney Sells or one of The Firm Business Brokerage’s professionals at 402.998.5288 or email Confidential@TheFirmB2B.com.