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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 any business can vary based on a wide variety of factors.