Profitable, High-End Residential Cleaning Business in W. Michigan – SOLD

Contact: Mike Greengard
Email: [email protected]
Your Reference ID: MG1092919

Description:

The founder-owner-seller of this profitable, high-end residential cleaning business has enjoyed a five year history of double digit year-over-year growth; however, a growing family has now stretched the owner too thin, to the point where selling the business appears to be the most logical decision. The seller’s situation could be your opportunity.

The business operates within an incredibly small footprint of only a two mile radius from its attractive 800 square foot office in West Michigan’s wealthiest community. Rent is only 3.0% of revenues. With a roster of 100 (+) clients, there is no client concentration – the largest client accounts for just 2.4% of the company’s $400,000 of annual revenues.

The company has 13 well-paid and heavily trained employees. Bucking industry standards, the business (a) has all its team members paid as W-2 employees on the company’s payroll; (b) offers its employees access to the company’s health insurance program, including meaningful company contributions for its two management level employees; and (c) has a work force of English as a first language employees. The training and presence of the employees dovetail perfectly with clients’ expectations.

The owner, who (a) only now works 20 hours weekly, and (b) neither cleans nor conducts inspections (which are done by the two management level employees) enjoys an $80,000 SDE (the cash flow available to pay an owner-operator and service debt). Growth opportunities abound: (1) the buyer of this business will inherit a lengthy waiting list of eager potential new clients; and (2) clearly, nominally expanding the narrow geographic scope of the business would seem to be low hanging fruit for a growth minded buyer.

The business is value-priced at $125,000 with the goal of selling quickly. As further encouragement, the seller will carry a note for a qualified buyer of 20% of the purchase price. The listing price includes a current inventory of cleaning supplies, serviceable cleaning equipment, a drop dead terrific website, and of course the goodwill of the business. Also, as part of the purchase price there will be ample transition training to suit buyer needs. There is no A/R as clients are billed on the day of service from credit cards on file. At closing, the seller will retain the cash in the business and retire all liabilities.

This outstanding business opportunity truly redefines the expression “niche business.” To learn more, please contact Mike Greengard (mgreengard@praxisbusinessbrokers.com) or Miles Greengard (616-350-8760 or miles@praxisbusinessbrokers.com).

 

Other Information:
Located in an attractive 800 sf office in West Michigan's wealthiest community

Location(s): Grand Rapids, Michigan

Asking Price: $125,000
Cash Flow: $80,000
Gross: $400,000

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