Tim Murch, CBSE, and Andrew Rust 

4M Building Solutions, a leading commercial cleaning provider established in 1978, has completed 39 successful acquisitions in the cleaning industry. Drawing from extensive experience, 4M presents this article series to guide business owners through the process of selling their commercial cleaning business. This installment focuses on best practices that potential sellers should follow to ensure a smooth and efficient sale when the time comes.  

Selling a commercial cleaning or janitorial company is often one of the most important decisions an owner will make. Whether the goal is retirement, a new career path, or realizing the value built over decades, the sale process can be both rewarding and daunting. Without proper preparation, it can easily become overwhelming; however, with the right strategies, an owner can ensure a smooth, efficient, and successful transaction. 

Owners should think of selling as a process, not a one-time event. This article outlines the best practices commercial cleaning company owners can adopt to streamline the sale process, build buyer confidence, and preserve their legacy. 

Start Preparations Early 

A successful sale doesn’t happen by accident. The best-prepared owners begin well in advance — sometimes years before they intend to sell. Starting today, owners should focus on getting their “house in order.” This involves resolving any legal disputes, ensuring customer contracts are in place and up to date, and filling key management roles so that the business is not overly dependent on the owner. 

A buyer will place a premium on companies with organized, well-documented operations. Owners who wait until an offer is on the table to clean up records or address issues often face delays, renegotiations, or lower valuations. 

Maintain Accurate Financial Records 

One of the first things a prospective buyer will request is a clear financial picture of the business. Owners should provide at least three to five years of clean, analyzable financial data. This includes: 

  • Profit and loss statements (“P&L”), balance sheets, and cash flow statements 
  • Job-level P&Ls and budgets 
  • Explanations for trends and variances 

Engaging a CPA to close the books monthly and maintain accurate and professional financial records can be invaluable. Importantly, owners should also document and track in an organized way any personal or non-business-related expenses that are incurred through the business, as these impact reported profitability. 

Organize Key Documents 

Disorganized records create friction in the sales process. A buyer will request customer contracts, employment agreements, leases, insurance policies, and process documentation. Having these ready in digital format demonstrates professionalism and preparedness. Organized documents not only speed up diligence but also reduce the likelihood of misunderstandings or deal fatigue.  

Delegate to a Trusted Team 

Selling a company is often described as a “second job” that can last several months. Owners shouldn’t go it alone. Instead, they should build a trusted team to delegate to, which may include:  

  • Internal managers who can provide operational data and insights 
  • A CPA with experience in M&A and/or the company CFO or bookkeeper 
  • A lawyer specializing in mergers and acquisitions
  • Insurance and benefits brokers and/or HR advisors who can address compliance and team-related issues 

While attorneys are essential, owners should manage them carefully. Utilizing attorneys who don’t specialize in M&A, or allowing attorneys to freely negotiate unchecked by the owner, can create friction and slow the process. Direct communication with the buyer is often the most effective way to resolve issues rather than relying solely or more heavily on attorneys. 

Be Open, Honest, and Transparent 

Trust is the foundation of any successful transaction. Concealing issues, even small ones, almost always backfires. A buyer appreciates honesty and is more likely to work through challenges when they are disclosed upfront. Surprises discovered late in diligence, on the other hand, can derail deals entirely. 

A clear, upfront understanding of the owner’s needs, from financial expectations to cultural fit and post-close involvement, also avoids misalignment. Transparency and mutual respect contribute to a smoother transaction for both parties. 

Resolve “Value Killers” Beforehand 

Certain issues can significantly reduce a company’s value or derail a deal altogether. Owners should proactively address:

  • Declining revenue or profits 
  • Reliance on a small number of customers (high customer concentration) 
  • Difficulty retaining customers over time (poor customer retention) 
  • Ongoing or potential legal or regulatory issues 
  • Limited management depth or no clear succession plan 

By identifying and fixing these issues before pursuing a sale, owners protect the value they’ve built and increase buyer confidence. 

Focus on Value Drivers 

While avoiding pitfalls is essential, maximizing strengths is equally critical. A buyer will pay a premium for companies that demonstrate: 

  • Strong culture and team member retention
  • Consistent revenue and profit growth
  • High customer retention rates
  • Documented systems and processes rather than “tribal knowledge,” those informal unwritten rules and understandings that live in people’s heads, which is common in fast-growing, entrepreneurial companies
  • Technological sophistication and innovation in service delivery 

For janitorial service companies, showcasing low employee turnover and strong customer satisfaction is especially powerful. A buyer values assurance that the workforce and client base will remain stable after the transition. 

Respond Promptly to Buyer Requests 

Responsiveness is often underestimated. When sellers delay in providing requested information or submit incomplete data, a buyer may interpret it as disorganization — or worse, concealment. By providing timely, thorough responses, owners reinforce confidence and keep momentum on their side. 

Choose the Right Buyer 

Not all buyers are created equal. A smooth sale depends on more than just the numbers; it also requires alignment in culture, mission, and values. The ideal buyer respects the company’s legacy, prioritizes keeping customers and team members, and seeks a mutually beneficial outcome. Sellers should be cautious of a buyer who requires limited diligence, avoids transparency, or lacks committed capital. 

Selecting a buyer who understands the industry, respects the seller’s legacy, and has a defined, credible process increases the likelihood of both a smooth sale and long-term success for the business post-close. 

Keep Perspective.

Owners should remember that selling a business is an emotional journey as much as a financial one. By approaching it as a structured process, with preparation and the right mindset, they can reduce stress and ensure their financial, personal, and cultural priorities— are met. 

Conclusion 

For owners of commercial cleaning and janitorial services companies, selling a business marks both an ending and a new beginning. Achieving the best results takes careful planning and clear organization. Owners who start early, keep their finances in order, build a trusted team, and choose a buyer who respects their legacy and team are far more likely to enjoy a smooth, efficient sale that captures the full value of their business. Seasoned M&A professionals will tell you that “time kills deals.” The antidote is readiness, honesty, and responsiveness. With these best practices in place, owners can confidently navigate the sale process, celebrate the close, and see their business thrive in its next chapter. 

Check out more in this series: 

Tim M. Murch, CBSE, is CEO and Managing Partner of 4M Building Solutions, a 46-year-old janitorial services company with sales just under $250 million, operating in 27 states with 7,000 team members. Tim and 4M have successfully completed 35 acquisitions (as of press time). 4M partnered with O2 Investment Partners at the end of 2022 with 4M being the platform company leading acquisitions and further organic growth. 

Andrew Rust is Head of Corporate Development and M&A for 4M Building Solutions. Andrew has over a decade of experience in finance, operations, corporate strategy, and mergers and acquisitions. Having closed more than 35 transactions representing over $700 million in transaction value, Andrew is an expert in acquiring and partnering with founder-owned and operated businesses. 


posted on 10/3/2025