Sell Your Janitorial Company in Ohio
We help owners sell janitorial companies in Central and Eastern Ohio. We work with established companies where the owner wants a planned sale, a clear valuation, and a controlled process.
You decide who learns about the sale and when. We do not publish the company name. Buyers sign a non-disclosure agreement and show that they can fund a purchase before they receive identifying information.
The work starts before marketing. We review earnings, customers, contracts, employees, equipment, licenses, and the revenue expected after closing. That preparation gives buyers fewer reasons to reduce the price during diligence.
Ohio sales also raise licensing, registration and successor liability questions. Commercial janitorial service is taxable under ORC 5739.01(B)(3)(j) once sales exceed $5,000 a year. The Ohio Supreme Court in Great Lakes Bar Control v. Testa (2018) limited that to ordinary cleaning, so unremitted tax is a seller liability found in diligence. Ohio is a monopolistic workers' compensation state. Under Ohio BWC successorship rules a buyer of all or part of a business inherits the seller's experience rating, unpaid premiums and claim costs, even in an asset deal. Both parties sign BWC form AC-4 so the buyer can see payroll, experience modifier and claims history. Labor-heavy janitorial firms are the classic case where this moves price.
How Janitorial Companies Are Valued
Small owner-operated companies are usually valued on Seller's Discretionary Earnings, or SDE. SDE starts with net income. It adds the owner's compensation, interest, depreciation, amortization, supported personal expenses, and costs that will not continue after closing.
Larger companies are usually valued on EBITDA. EBITDA means earnings before interest, taxes, depreciation, and amortization. It leaves the cost of management in the business because the buyer expects to pay someone to replace the owner's work.
The correct measure depends on the company and the likely buyer. Buyers then apply a multiple based on the quality and durability of those earnings. Clean records, a team that stays, repeat revenue, diverse customers, and low owner dependence can support the upper end of a range. Weak reporting, concentration, thin forward revenue, compliance gaps, and deferred equipment needs can push value down.
We use private company transaction data from BVR DealStats. The median is the middle transaction in the data set.
| Metric | 25th percentile | Median | 75th percentile |
|---|---|---|---|
| SDE multiple | 2.2x | 2.6x | 3.1x |
| EBITDA multiple | 3.1x | 3.8x | 4.7x |
| Revenue multiple | Not reported | 0.66x | Not reported |
BVR DealStats, pulled November 1, 2026, NAICS 561720 with keyword "janitorial", n=83.
Filters: sale date November 1, 2016 or later, deal price (MVIC) $250,000 to $10,000,000. The median SDE multiple is 2.6x. The median EBITDA multiple is 3.8x. The EBITDA figure rests on fewer deals (n=39).
A valuation also tests what the buyer receives at closing. Debt, working capital, equipment ownership, leases, and related-party arrangements affect the final structure. The headline multiple does not show what the owner keeps.
What Buyers Look For
Multi-year contracts. Buyers prefer contracts of about three years with extensions over month-to-month work, with no 30 to 90 day cancellation clauses. Review your terms.
No dominant customer. Buyers want no customer above 12 to 20 percent of revenue. Show revenue by account.
Supervisor depth and stable staff. Buyers look for low turnover and employees rather than temps. Document your supervisors and tenure.
Preferred account types. Medical, life sciences, education and owner-occupied accounts draw interest. Report revenue by account type.
Adjusted EBITDA in the 10 to 12 percent range. Modest add-backs make that figure believable. Keep add-backs supported.
Insurance, workers' comp and OSHA records. Buyers review all three. Organize them before marketing.
Buyers do not accept a claim because it appears in a sales package. They trace it to tax returns, contracts, bank statements, service records, employee files, and operating reports. Organized records support the price and shorten diligence.
They also ask who will run the business after closing. An office manager, scheduler or team lead who can stay may matter as much as a piece of equipment. Written procedures make that team easier to transfer.
Common Problems That Kill Deals
Unverifiable financials and excessive add-backs. Add-backs a buyer cannot support get thrown out. Document each one.
One or two dominant contracts. Losing one would cut earnings. Spread the base.
Short or easily cancelled contracts. Revenue can leave quickly. Extend terms.
High turnover, temp labor or misclassified contractors. These raise cost and risk. Stabilize the workforce.
An owner handling all customer relations and invoicing. Customers may follow the owner. Delegate.
Contract assignment not addressed in an asset sale. A contract that cannot be assigned may not transfer. Check each contract.
Most problems do not end a sale when they are found early and disclosed. They become dangerous when a buyer discovers them after signing a letter of intent. The buyer may reduce the price, demand escrow, or leave the deal.
We identify the issues before marketing. Some can be corrected. Others need a clear explanation, supporting records, and a buyer that understands the risk.
How the Sale Process Works
- Valuation. We review three years of tax returns, profit and loss statements, balance sheets, and payroll records. We build an add-back schedule. We compare the adjusted earnings with relevant transactions. You receive a range and the reasons behind it.
- Preparation. We identify reporting gaps, contract issues, customer concentration, owner dependence, and Ohio compliance items. We address what can be fixed before a buyer sees the company.
- Confidential marketing. We prepare a blind profile that does not name the company. Interested buyers sign a non-disclosure agreement and show that they can fund a purchase before receiving identifying information.
- Letter of intent. We compare the price, cash at closing, financing, working capital, escrow, transition terms, and contingencies. We negotiate the full offer before you grant exclusivity.
- Due diligence. The buyer checks the financials, tax records, contracts, employees, licenses, insurance, equipment, and operations. We manage requests and keep the buyer, lender, CPA, and attorneys moving.
- Closing. The parties finish the purchase agreement, funding, clearances, and transition plan. Six to nine months from market launch to closing is typical for a prepared business.
The company must keep operating through the process. Buyers and lenders use the newest results. A weak quarter during diligence can change the price or financing. We set a schedule, organize requests, and keep management focused on the business.
Frequently Asked Questions
How much is a janitorial company worth?
Value starts with adjusted earnings, not a rule of thumb. Smaller owner-operated companies are usually priced on SDE. Larger companies are usually priced on EBITDA. The published ranges on this page are a starting point. We confirm the current range after reviewing the financials, risks, and comparable transactions.
What records do I need to sell my janitorial company?
Prepare three years of tax returns, profit and loss statements, balance sheets, payroll records, customer and contract lists, equipment records, and support for every add-back. Cleaning companies also need a client list with service frequency, start date and monthly billing.
Will employees and customers know about the sale?
You control who learns about the sale and when. Buyers first receive a blind profile. They sign a non-disclosure agreement and complete a financial review before receiving the company name. Key employees are usually told later in the process under a transition plan.
Do I need to stay after closing?
Most buyers request a transition. The length depends on customer relationships, licenses, management depth, and how much daily work depends on the owner. The transition is negotiated before closing.
What Ohio issues matter in a janitorial company sale?
Commercial janitorial service needs an Ohio vendor's license and collects sales tax. Ohio BWC successorship can pass the seller's experience rating and claim costs to the buyer. A buyer should get its own vendor's license and review BWC form AC-4.
How long does it take to sell a janitorial company?
Six to nine months from going to market to closing is typical for a prepared company. Financial cleanup, licensing gaps, lease issues, tax clearances, or buyer financing can extend the schedule.