Commercial Cleaning / Janitorial multiples?

by a searcher from Columbia University - Columbia Business School

2 months ago

Hello everyone,

I'm looking at a janitorial company in the Northeast. $2 million EBITDA and 10% CAGR revenue growth over the past 4 years. Their clients are schools, offices, hospitals, warehouses, etc.

Does anyone have an idea of what the EBITDA multiple ranges are for this type of business?

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searcher from New York University - Leonard N. Stern School of Business

Hi Nick, I'm curious to know if you pursued this opportunity further. My partner and I are deep into a janitorial services opportunity now as well.

2 weeks ago | like reply | 0 likes

searcher from Bishop's University

That's a nice size platform, good luck on it Nick! Assuming the business has a relatively long operating history, low churn and long duration (history of repeat renewals) cleaning contract track record that business could fetch 5-6x EBITDA, depending on any constraints imposed by your senior lender. Happy to compare notes - my partners and I own a commercial cleaning business in Canada with some overlap in end markets served in reference to the company you're looking at. Drop me a line if you'd like to compare notes.

1 month ago | like reply | 0 likes

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