Janitorial Franchise Service Company

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April 10, 2023

by a searcher from University at Buffalo, State University of New York - School of Management in Buffalo, NY, USA

Has anyone purchased or started a Janitorial Franchise Company? The company customer base is primarily commercial medical facilities and has $2M. Company has been in business 30+ years. Does anyone have thoughts on valuation for janitorial franchise businesses? Things to look for during DD?

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Reply by a searcher
from Vanderbilt University in New York, NY, USA
Very familiar with this industry. Feel free to email @ brian -at- sunbirdcap.com

Assuming you're saying $2M some profit/cash flow metric, the punch line is this business is most likely worth high single digit - low teens millions. Key variables will be degree of recurring vs. demand work and customer retention.
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Reply by a searcher
from Western Illinois University in St. Louis, MO, USA
be sure to look at pre-covid #'s. When Covid hit, all my plants bumped service up from 3x week to 5x week and added some extras. and one-off deep cleans. it takes time to get sites back down to pre-covid service levels, but it is in the works.
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