How much does a business broker charge?

Business broker commissions range from 5–12% of the final sale price depending on deal size. Smaller businesses (under $1M) typically pay 10–12%, while mid-market businesses ($1M–$5M) pay 6–10%. Some brokers also charge an upfront retainer of $2,500–$15,000 for CIM preparation, which is usually credited back at closing.

How long does it take to sell a business?

Most small to mid-market business sales take 6–12 months from broker engagement to close. The stages include CIM preparation (4–8 weeks), buyer outreach and qualification (4–12 weeks), due diligence (30–90 days), and closing (2–4 weeks). SBA-financed deals add 30–60 days to the timeline.

What is seller's discretionary earnings (SDE)?

Seller's Discretionary Earnings (SDE) is the standard valuation metric for small businesses. It equals net profit plus owner salary, owner benefits, non-recurring expenses, and depreciation/amortization. SDE represents the total economic benefit to a single owner-operator. Most small businesses sell at 2–4× SDE.

Do I need a business broker to sell my business?

While you can technically sell without a broker, data consistently shows brokered transactions close at 15–25% higher prices and at higher completion rates than unrepresented sales. The exception is if you already have an identified buyer at an agreed price. In any other scenario, professional representation pays for itself many times over.

What is an IBBA-certified business broker?

The International Business Brokers Association (IBBA) is the professional body for business brokers. IBBA-certified brokers hold designations like CBI (Certified Business Intermediary) or M&AMI (Merger & Acquisition Master Intermediary), which require transaction history, continuing education, and adherence to a code of ethics. These certifications signal professional commitment and deal experience.

What is the difference between a business broker and an M&A advisor?

Business brokers typically handle Main Street and lower-middle-market transactions — businesses selling for $100K to $10M. M&A advisors operate in the middle market ($10M to $500M+) with larger teams, investment banking capabilities, and institutional buyer relationships. For businesses under $5M, a CBI-certified business broker is usually the right choice.

How to Sell a Cleaning Business

Selling a cleaning business is more straightforward than most owners expect, but the details matter — especially when your revenue is tied to recurring contracts, key employees, or your own labor. Whether you run a residential maid service, a commercial janitorial company, or a specialty cleaning operation, the steps to a successful sale are largely the same. This guide walks you through the entire process so you know what to expect and what to do first.

What Makes a Cleaning Business Valuable to a Buyer

Buyers aren't just purchasing your equipment and client list — they're buying a stream of future income. The more predictable and transferable that income is, the more your business is worth. Recurring contracts with commercial clients (office buildings, schools, medical facilities) are typically valued higher than one-off residential jobs because they represent guaranteed revenue. A cleaning business where the owner does most of the cleaning themselves is harder to sell and usually commands a lower multiple, because the buyer has to immediately replace that labor. Businesses with trained crews, documented cleaning procedures, and a manager or lead cleaner in place are far more attractive. Before you list, think honestly about how much of the business depends on you personally showing up.

›Recurring commercial contracts with signed agreements
›Trained employees or subcontractors who will stay post-sale
›Documented cleaning checklists and operational procedures
›A client base that isn't concentrated in one or two accounts
›Consistent revenue over at least two to three years
›Equipment and supplies that are owned, not leased

How Cleaning Businesses Are Valued

Most cleaning businesses sell based on a multiple of Seller's Discretionary Earnings, or SDE. SDE is your net profit plus your own salary, any personal expenses run through the business, depreciation, and one-time costs. For a cleaning business generating $100,000 in SDE, a typical sale price might fall between $150,000 and $300,000 — that's a 1.5x to 3x multiple. Where you land in that range depends on factors like contract stability, employee retention, how long you've been in business, and whether you're owner-operated. Smaller residential cleaning businesses with under $50,000 in SDE often sell at the lower end of the range, sometimes even below 1.5x, because the buyer is essentially buying a job. Commercial cleaning companies with locked-in contracts and crews in place can push toward 3x or higher. Equipment value is usually added on top of the SDE multiple, or negotiated separately.

›SDE = net profit + owner salary + add-backs (personal expenses, depreciation, one-time costs)
›Typical multiple range: 1.5x to 3x SDE for most cleaning businesses
›Commercial contracts with long terms push valuations higher
›Owner-operated residential businesses often sell at 1x to 1.5x SDE
›Equipment is typically valued at fair market value and added to the purchase price
›Franchise cleaning businesses may follow different valuation rules set by the franchisor

Getting Your Financials Ready Before You List

Buyers and their accountants will scrutinize your numbers, so you want clean, organized records before you start talking to anyone. Pull together your profit and loss statements, tax returns, and bank statements for the last three years. If your bookkeeping has been inconsistent — cash payments not recorded, personal expenses mixed with business expenses — now is the time to clean that up with your accountant. Buyers will ask for a list of all active clients, the revenue each generates monthly, and whether those clients are on signed contracts. For commercial accounts, be ready to share contract expiration dates. For residential clients, document how long each has been with you and their average monthly spend. The more organized your records, the faster the sale moves and the less room buyers have to negotiate your price down.

›Three years of profit and loss statements
›Three years of business tax returns
›Three months of recent bank statements
›Client list with monthly revenue per client and contract status
›Payroll records showing employee hours and wages
›List of equipment with purchase dates and current condition

Should You Use a Business Broker or Sell on Your Own?

Selling a cleaning business on your own is possible, especially if you already know a potential buyer — a competitor, a key employee, or a family member. But most owners who try to sell without help underestimate how much time it takes to find qualified buyers, field inquiries, negotiate terms, and manage due diligence while still running the business. A business broker who has sold cleaning companies before knows where to find buyers, how to price the business competitively, and how to structure a deal that protects you. Brokers typically charge a commission of 8% to 12% of the sale price for smaller businesses, with a minimum fee that often starts around $10,000 to $15,000. For a cleaning business selling for $200,000 or more, that commission is usually worth it. If your business is smaller — say, under $75,000 in asking price — a broker may not take the listing, and selling directly or through a marketplace may make more sense.

›Brokers typically charge 8% to 12% commission on the final sale price
›Most brokers set a minimum fee of $10,000 to $15,000 regardless of sale price
›A broker handles buyer screening, NDAs, and negotiation on your behalf
›Direct sales work best when you already have a buyer in mind
›Online marketplaces like BizBuySell work for smaller listings but require more owner involvement
›BizBrokerMatch.com lets you filter for brokers who list cleaning or service business experience

How to Find the Right Buyer for a Cleaning Business

The most common buyers for cleaning businesses fall into a few categories: individuals looking to buy a job and be their own boss, existing cleaning companies looking to expand their client base, and small private equity groups or search fund operators targeting service businesses. For residential cleaning companies, the buyer is often an individual or couple who wants to run the business themselves. For commercial cleaning operations with crews and contracts, you're more likely to attract a strategic buyer — another cleaning company that wants your accounts and employees without starting from scratch. Your broker will typically market the business confidentially, meaning buyers sign a non-disclosure agreement before seeing your financials or client list. This protects you from employees or clients finding out the business is for sale before a deal is done.

›Individual owner-operators looking to buy their first business
›Existing cleaning companies expanding into your territory or client base
›Search fund operators or small private equity buyers targeting service businesses
›Key employees who want to buy the business from you (management buyout)
›Competitors who want your contracts without the cost of customer acquisition

Deal Structure: Cash, Owner Financing, and Earnouts

Most cleaning business sales don't close as all-cash deals, especially for businesses under $500,000. Buyers often ask for some form of seller financing, where you receive a down payment at closing — typically 50% to 70% of the purchase price — and the buyer pays the remainder over two to five years with interest. Owner financing can actually help you sell faster and at a higher price, because it expands the pool of buyers who can afford to purchase. The risk is that if the buyer runs the business into the ground, collecting those payments becomes difficult. Always use a promissory note and a security agreement that gives you the right to reclaim the business if the buyer defaults. Earnouts — where part of your payment depends on the business hitting future revenue targets — are less common in cleaning businesses but sometimes appear when a buyer is uncertain about client retention after the sale.

›All-cash deals are possible but less common for businesses under $500,000
›Typical down payment with seller financing: 50% to 70% at closing
›Seller financing terms usually run two to five years at 6% to 10% interest
›Always secure seller financing with a promissory note and security agreement
›SBA loans are an option for qualified buyers, which can get you closer to all-cash at closing
›Earnouts tie part of your payment to post-sale revenue — negotiate these carefully

The Transition Period: What Buyers Expect After Closing

Buyers almost always require a transition period where you stay involved after the sale to introduce them to clients, train them on your systems, and help retain employees. For a small residential cleaning business, this might be two to four weeks. For a larger commercial operation, expect 30 to 90 days of transition support, sometimes longer if the buyer is new to the industry. This transition is usually included in the sale price, but if a buyer asks for an extended consulting arrangement beyond what's agreed, that should be compensated separately. Be honest with yourself about how clients will react to new ownership. If you have strong personal relationships with your commercial accounts, plan how you'll introduce the buyer in a way that reassures them. Client retention during the first 90 days after a sale is one of the biggest factors in whether the buyer succeeds — and whether you collect your seller-financed payments.

›Typical transition period: two to four weeks for small residential businesses
›Commercial operations often require 30 to 90 days of transition support
›Transition is usually included in the sale price — get the terms in writing
›Plan a formal introduction strategy for key commercial clients
›Document your cleaning routes, client preferences, and employee schedules before closing
›Extended consulting beyond the agreed period should be paid separately

Common Mistakes That Kill Cleaning Business Sales

The most common reason cleaning business sales fall apart is that the owner waits too long to prepare. If you're thinking about selling in the next one to three years, start cleaning up your financials and reducing owner-dependency now — not the week you decide to list. Other frequent problems include overpricing based on emotion rather than actual SDE multiples, failing to disclose client concentration risk (when one client represents 30% or more of revenue), and not having non-compete agreements in place with key employees. Buyers will discover these issues during due diligence, and when they do, they'll either walk away or renegotiate the price downward. A business broker with cleaning industry experience can help you anticipate these issues before they become deal-killers. You can search for brokers who declare service business or cleaning industry experience at BizBrokerMatch.com.

›Waiting until you're burned out to sell — preparation takes 6 to 12 months
›Overpricing based on revenue instead of actual SDE
›Undisclosed client concentration (one client = 30%+ of revenue)
›No signed contracts with commercial clients
›Key employees with no non-compete or non-solicitation agreements
›Inconsistent or incomplete financial records that raise red flags in due diligence

Frequently Asked Questions

How much can I sell my cleaning business for?

Most cleaning businesses sell for 1.5x to 3x their annual Seller's Discretionary Earnings (SDE). A business generating $80,000 in SDE might sell for $120,000 to $240,000. Owner-operated residential businesses with no employees typically land at the lower end of that range. Commercial cleaning companies with signed contracts and trained crews in place can push toward the higher end. Equipment value is usually added on top of the SDE multiple.

How long does it take to sell a cleaning business?

From the time you list to the time you close, most cleaning business sales take four to nine months. Smaller businesses with straightforward financials can close faster. Larger commercial operations with more complex due diligence often take longer. If you need to clean up your books or reduce owner-dependency before listing, add another six to twelve months of preparation time before you go to market.

Can I sell a cleaning business if I am the only employee?

Yes, but it's harder and you'll typically get a lower multiple. When you're the sole operator, the buyer is essentially buying a client list and a job — they have to immediately replace your labor. To improve your sale price, try to hire and train at least one reliable employee before selling. Even one trained cleaner who knows your clients and routes makes the business significantly more transferable and attractive to buyers.

Do I need a business broker to sell my cleaning business?

Not always, but it helps. If your cleaning business is worth less than $75,000, a broker may not take the listing because the commission won't cover their time. In that case, selling directly to a competitor, employee, or through an online marketplace is reasonable. For businesses worth $100,000 or more, a broker who knows service businesses can find more qualified buyers, negotiate better terms, and help you avoid costly mistakes during due diligence.

Should I accept owner financing when selling my cleaning business?

Owner financing is common in cleaning business sales and can help you sell faster and at a higher price by opening the deal to buyers who can't pay all cash. A typical structure is 50% to 70% down at closing with the balance paid over two to five years. The risk is buyer default — protect yourself with a promissory note and a security agreement that lets you reclaim the business if payments stop. Never agree to seller financing without proper legal documents.

Ready to find your broker?

If you're ready to find a broker who lists experience selling cleaning and service businesses, search BizBrokerMatch.com to compare options and reach out directly.

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How to Sell a Cleaning Business: A Step-by-Step Guide for Owners