Niche Janitorial Service in Boston Metro Area For Sale
Boston Metro Area, Massachusetts
Listing Number: 1640
Asking Price: $595,000
Gross Revenues: $944,000
Cash Flow: $182,500 (to an individual buyer)
Cash Flow: $246,000 (to an industry buyer)
A subscription business, where customers pay for a service on a regular basis, is a great business. That’s what this business has. Their average customer has been with them for over 6 years, getting cleaning services on a regular basis. They are billed monthly for the month ahead and the business has virtually no accounts receivable. This business is NOT a franchise.
Due to its excellent customer service, communication, and relationships, the business has grown every year since it was started. Projected revenues for 2020 are over $1,000,000 With about 90% coming from the regular monthly billings, that’s an income you can count on. The company has about 60 accounts with no customer providing over 6% of revenues. The cash flow to an industry buyer, combining this business with their business, would be about $246,000.
Most commercial cleaning companies work at night and on weekends when offices and retail stores are closed. Not this business. It has focused on a niche where it does the cleaning during the week and during the day. This niche is one that is growing much faster than the national economy, offering many opportunities for growth to a buyer.
The owner of the business owns the real estate and wants to repurpose it making this a good acquisition for an industry buyer that doesn’t need the location. Many of the cleaners have been with the business for several years. The owner focuses on sales and overall management of the business and has a field supervisor to manage the cleaners. The primary assets of the business are the 9 vehicles used in the business. These, including the rolling stock of cleaning supplies, are included in the sale.
Growth & Expansion: The business has grown organically with little advertising. This business has tapped only a small percentage of the market. A buyer that wanted faster growth could focus on doing more marketing, expanding the market served geographically, or adding additional services.
Financing: SBA financing with a 10% to 20% down payment should be available to qualified buyers.
Support & Training: The seller will provide training and support to ensure a smooth transition.
Reason Selling: Life style change