Specialized Commercial Cleaning, 20-Year Albuquerque B2B Contractor

$1.7M

Revenue

$622K

SDE

4.4x

Multiple

Subscribe Free

Read the full deal writeup

Get Free Access

Already a member? Sign in

Full Editorial Writeup

This is a roughly two-decade-old commercial cleaning company operating in the Albuquerque, New Mexico metro. It delivers specialized B2B cleaning services that hundreds of commercial accounts schedule on recurring cycles, which means the majority of revenue repeats year after year rather than being re-won through one-time project work. On approximately $1.68 million of 2026 pro forma revenue it generates about $622,000 in SDE, a 37% margin that has climbed from 23% three years ago through price discipline and operating efficiency.

The operating model is unusually clean for a services business. Working team leads each run a company service vehicle and own their customer schedule end to end, with scheduling, dispatch, and customer service coordinated through a single field service software platform. The owner works about 25 hours per week in an oversight capacity, which signals real management depth beneath the seller and lowers key-person risk relative to a typical hands-on cleaning operation.

The asking price of $2.75 million implies a 4.42x multiple on SDE, which is at the higher end for a cleaning services business. What justifies a premium look is the recurring account base, the expanding margin, the debt-free multi-vehicle fleet worth roughly $150,000 transferring at close, and the fact the business already runs on a distributed team rather than the owner personally cleaning accounts.

Why we like it

Earnings quality is strong and improving: SDE margin expanded from 23% to 37% over three years on price discipline and operating efficiency, not a one-time revenue spike. A 37% margin on cleaning services is well above the norm, and the trajectory suggests pricing power with existing accounts rather than discounting to hold volume.
Durability comes from recurring contracts across hundreds of active commercial accounts, where most revenue repeats year after year from established relationships. This is route-density economics, not project work, so revenue does not have to be re-won each month and customer concentration risk is spread across a broad base.
Commercial cleaning is genuinely recession-resistant because facilities still need to be cleaned in a downturn, and specialized B2B work tends to be stickier than generic janitorial. The 20-year operating history through multiple cycles supports the claim that these accounts renew by default.
The operator advantage is that the business already runs on a distributed team of working team leads with their own vehicles and schedules, coordinated by field service software, while the owner works only 25 hours a week. A buyer inherits infrastructure and delegation rather than a job, which is rare at this size in cleaning.

How to improve it

Audit pricing across the full account base within the first 90 days and roll structured annual escalators into every contract at renewal. Margins already improved on price discipline, and codifying CPI-linked increases turns that into a durable, repeatable lever rather than a one-time gain.
Layer in adjacent recurring services the existing team leads can sell into current accounts, such as floor care, disinfection, or specialty surface work. Selling more to hundreds of trusting accounts is far cheaper than acquiring new logos and raises revenue per route.
Formalize a referral and account-review program with the team leads who already own customer relationships end to end. Their direct customer contact is an underused sales channel, and small incentives can convert satisfied accounts into new-account referrals.
Tighten route density and scheduling using the field service software data to cut drive time and windshield hours per team lead. Better routing directly improves the labor and fuel line, which is the largest cost in a vehicle-based cleaning operation.
Build a simple digital acquisition funnel targeting commercial property managers and facility managers in the metro. The business appears to have grown largely on reputation, so even a modest paid and outbound motion could accelerate account growth from the current base.
Document standard operating procedures and cross-train team leads to reduce dependence on any single field employee. With the owner only part-time, the human capital sits with the leads, so retention and redundancy planning protect the recurring revenue you are paying for.

Diligence notes

Confirm whether the $1.68 million revenue and $622,000 SDE are pro forma or actual trailing figures, since the description explicitly calls them 2026 pro forma. Reconcile against tax returns and bank statements for the last three years to verify the margin expansion story is real and not projected.
Stress-test the recurring revenue claim by pulling contract terms, renewal rates, and account tenure. Verify how much revenue is under written agreement versus at-will, and check customer concentration to ensure no single account or handful of accounts drives outsized dependence.
Scrutinize the labor model, because the whole business rests on working team leads who own customer relationships and vehicles. Assess wage rates, turnover, whether leads are employees or contractors, and how much revenue would walk if a key lead left with an account.
Verify the owner truly works only 25 hours in oversight and map exactly what those hours cover, including sales, hiring, and customer escalations. Understating owner involvement is the most common way cleaning SDE gets inflated, and any hidden operating load changes the SDE and the multiple.
Inspect the fleet and equipment supporting the $150,000 free-and-clear value, including vehicle age, maintenance records, and near-term replacement capex. A distributed vehicle model means fleet condition directly affects future cash flow and should be reflected in your model.

Source

Originally listed on BusinessBroker.net. View original listing →