I am selling our janitorial company; however we only have contracts with the largest company we service. Currently we are turning approximately $90,000 per year with the following:
•Legally formed Limited Liability Corp
•No debit
•Two Telephone books carry current ads
•Storefront on main arterial -has potential for retail sales too
•Low overhead rent, electric & telephone
•Professional website with on domain name
•Professional email using domain name as extension
•Professional office setup
•All office equipment: Computer, Desk, Fax/copier, telephone & laser printer
•Growing accounts list
•Formidable reputation /well established
•Company logos, signs, brochures and mailers
•Turnkey management
•Account base in both Idaho & Washington
•Telephone numbers in both states 208 & 509 area codes
•No bad or slow paying accounts
•Daily, weekly cleaning accounts
•Semi-annual & Annual floor care accounts
•Online ordering of paper goods –accounts are setup
•Not a home based bu
Comments
How many employees? Employee turnovers? Unions? Vehicles and equipment? Percent of owner profit on gross? Owner participation in business? Reason for selling?
Businesses are valued on their cash flow and assets. Since it sounds like you don’t have any substantial assets (i.e. expensive equipment, own the location you operate out of, any account receivables, etc.) the value of your cash flows is the better way to assess the value of your business.
If you’ve been growing your profits at 15% a year and expect that trend to continue your business would be worth 300-400k.
I could give you a better estimate for the value of your business with more information. You can send me the details at