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Janitorial Service Business Valuation Formula:

This is a general business valuation formula or method for established commercial Janitorial services or businesses based on a percentage of annual gross revenues that can be used to help determine an approximate value and asking price to market an existing small janitorial business.

Janitorial Service Business Valuation Formula: Approximately 40 to 50% of annual gross sales.

Broker Comments: Another quick valuation formula for existing commercial janitorial services that I have found has held up fairly well is using a multiple of 2 times the owners annual adjusted net income including equipment.

Note: The biggest negative issue I have found when marketing independent janitorial businesses for sale is customer concentration. Many buyers are reluctant to move forward if one large account represents more than 30% of the businesses annual sales

Need a business valuation or appraisal report for legal, personal, or selling purposes? Request a free & confidential preliminary business valuation consultation about your established janitorial business here.
Note: Always contact and consult with a Business Broker, Business Appraiser, or financial adviser who is familiar with the dynamics of your local market and economy because conditions for establishing an asking price for a coffee house business can vary based on a wide variety of factors and local conditions.