Valuation · Commercial & janitorial
What is a commercial cleaning or janitorial business worth?
Commercial cleaning and janitorial companies are valued on the contracts behind the revenue. Here is where listed commercial businesses are priced, and what moves a buyer up or down the range.
Median asking multiple
2.88×
42 active listings with SDE
Middle half
2.40×–3.28×
lower to upper quartile
Median asking price
$380K
median SDE $151K
Your range as a commercial cleaning business
Enter seller’s discretionary earnings: net profit plus your salary, personal expenses run through the business, interest, depreciation and one-time costs.
Commercial and janitorial are one market here
Brokers use “commercial cleaning” and “janitorial” for the same businesses: recurring contract cleaning for offices, medical facilities, schools and industrial sites. The figures on this page combine them, because splitting them would only split the sample.
Contracts are the asset
A buyer is purchasing contracted monthly revenue. Written agreements with defined scope, pricing and term, and that can be assigned to a new owner, are what the multiple is paid on. Handshake accounts are valued, but at a discount.
Customer concentration is the most common reason a commercial deal reprices. One account above roughly a quarter of revenue makes the business a bet on that customer, and buyers will price it that way.
Contract length and renewal history matter as much as the current list. Accounts that have renewed several times tell a buyer the revenue survives a change in who is doing the work.
What raises a commercial valuation
A spread of accounts across industries and buildings, with no single client dominating.
Supervisors or area managers who handle the accounts day to day, so client relationships do not leave with the seller.
Documented labor: legal classification, stable crews, and wages that leave room for margin if rates rise.
Margins and pricing that can be shown per account, so a buyer can see which contracts carry the business and which lose money.
Compared with other cleaning businesses
| Type | Listings | Median asking multiple | Median asking |
|---|---|---|---|
| Commercial & janitorial | 42 | 2.88× | $380K |
| Residential cleaning | 21 | 3.26× | $200K |
| Restoration | 19 | 2.73× | $525K |
| Pressure washing | 15 | 1.98× | $200K |
| Window cleaning | 15 | 2.24× | $180K |
| Carpet cleaning | 14 | 2.89× | $300K |
| All cleaning businesses | 303 | 2.84× | $280K |
Common questions
Is a commercial cleaning business worth more than a residential one?
Yes. Commercial businesses are usually larger, and buyers pay more per dollar of earnings for revenue that sits under written, assignable contracts than for a residential client list. That is why commercial companies sell for more in total and, in closed deals, at higher multiples.
How are janitorial businesses valued?
As a multiple of seller’s discretionary earnings for owner-operated companies, or of EBITDA for larger ones with management in place. Where a business sits in the range comes down to contract quality, customer concentration and how much the owner still does.
Do commercial cleaning contracts transfer to a buyer?
Only if they allow assignment or the customer agrees. Buyers check every major contract for change-of-control and assignment terms during diligence, so it pays to know the answer before listing.
Why do larger janitorial companies get higher multiples?
Larger companies usually have managers between the owner and the customers, more accounts, and audited or reviewed financials. That lowers the risk a buyer takes on and widens the pool of buyers, including private equity.
Where your business actually lands
A median tells you where comparable businesses ask. Contract quality, owner dependence and how the books present decide where yours sits.
No cost, no listing agreement. Or read how to prepare a cleaning business for sale.