Selecting the Right Buyer for Your Business

By Tim Murch and Andrew Rust

4M Building Solutions, a leading commercial cleaning provider established in 1978, has completed 38 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 the factors to consider when selecting a buyer for the business. 

For owners of commercial cleaning and janitorial services companies, deciding to sell is one of the most consequential decisions in their careers. Yet the most critical — and often most overlooked — part of that process is selecting the right buyer. Choosing who will take over the business determines not only the financial terms of the deal but also the future of employees, client relationships, and the company’s legacy. 

Drawing on insights from the perspective of both an experienced seller and an active acquirer, this article focuses exclusively on how business owners in the commercial cleaning industry can select the best possible buyer for their company. 

Understanding What “Right” Really Means 

The “right” buyer isn’t always the one offering the highest price. Rather, the ideal buyer is the one best aligned with the seller’s goals across multiple dimensions: operational integrity; cultural values; employee growth, development and retention; customer retention; and long-term business vision. 

Good buyers understand that, when evaluating an acquisition, price is important, but not as important as cultural fit and strategic alignment. “Right” buyers look for companies where they can enhance what's already working, not overhaul it. For sellers, this means adopting a holistic approach to evaluating buyers. 

Buyer Profiles: Know Who You’re Dealing With 

Before selecting a buyer, it’s essential to understand the different types of buyers that exist in the commercial cleaning industry. Each brings its own set of motivations and expectations. 

Strategic Buyers: These are other commercial cleaning companies or facility services firms looking to grow through acquisition. Their interest often lies in geographic expansion, client diversification, or workforce enhancement. Sellers should do their due diligence to ensure that strategic buyers have the financial means to complete an acquisition. Some strategic buyers are owned in whole or in part by private equity firms (“quasi-strategic buyers’), which is a good indication that they have the financial resources to execute acquisitions. 

Financial Buyers: These include private equity firms, search funds, and high-net-worth individuals. Their focus is typically on return on investment, and they may expect higher levels of financial reporting or plan to resell the business after it has grown. 

Internal Buyers: Sometimes, key employees or management teams express interest in purchasing the business. While appealing in terms of continuity, they may lack the capital or experience to scale the business independently. 

Family Buyers: In family-run businesses, children or relatives may be candidates. However, emotional dynamics and conflicting visions can complicate these transitions. In this situation, a family business consultant can guide succession planning, manage conflicts, and align the family’s goals with the company’s future. This support is valuable, whether the transition stays within the family or involves an outside sale. If selling to an external buyer, it can help ensure the family is aligned and confident that the buyer is the right fit, particularly if some members plan to continue in the business under the new ownership. 

Understanding each buyer type helps owners identify which profiles align with their post-sale business intentions. 

Alignment on Core Values and Culture 

Cultural compatibility is often the single most important — and underestimated — factor in a successful transaction. The commercial cleaning industry is a people-first business. The buyer must understand and respect the culture that drives the organization’s day-to-day operations. 

Thoughtful buyers carefully vet sellers for shared values, especially in areas such as people development and client service. Sellers should seek buyers that look for companies where people matter and who want to ensure employees will thrive post-acquisition. 

Sellers should ask pointed questions to assess cultural fit: 

• What is the buyer’s philosophy on employee retention and advancement? 
• How do they handle customer relationships and service standards? 
• What are their core values? 

If the answers reflect the seller’s own approach, there is likely to be strong alignment. 

Operational Synergy and Industry Expertise 

In a highly service-oriented field like janitorial services, the buyer’s ability to integrate seamlessly with existing operations is crucial. Buyers with industry experience are more likely to understand the complexities of scheduling, compliance issues, customer preferences, and workforce management. 

Sellers should favor buyers with proven experience in the commercial cleaning space. Look for: 

• A track record of successfully acquiring and integrating similar companies 
• Leadership with direct facility services or janitorial management experience 
• Operational systems that are compatible or complementary 

A buyer without sector-specific knowledge may struggle to retain staff or clients during the transition, putting the business’s future at risk. 

Approach to Employees 

Employee treatment during and after the sale is a vital measure of buyer quality. A strong buyer will have a clear plan for retaining key team members, honoring existing benefits, and ensuring continuity in leadership and supervision. 

Questions to ask buyers include: 

• Will employees be retained at their current compensation and benefit levels? 
• How will the buyer onboard staff and communicate the transition? 
• Are there plans for workforce reduction or restructuring? 

Employee retention and development should be core pillars of a buyer’s acquisition philosophy. A prospective buyer should show genuine interest in welcoming the seller’s team into their team and be able to demonstrate the necessary strategies and plans for a smooth transition. Sellers should expect no less. 

Customer Relationship Continuity 

In the janitorial industry, long-standing client relationships are a significant portion of a company’s value. A strong buyer will understand this and seek to preserve those relationships through careful communication, smooth transitions, and service continuity. 

Sellers should examine the buyer’s approach to: 

• Client retention and onboarding strategies 
• Handling service disruptions or scope changes during the transition 
• Protecting pricing structures and service levels post-sale 

Buyers who demonstrate an appreciation for client satisfaction — and who have the operational infrastructure to maintain it — are far better positioned to carry the business forward successfully. 

Financial Stability and Certainty to Close 

A buyer may appear promising on paper but fail to close due to financing issues or poor execution. Sellers should thoroughly assess a buyer’s financial position and transaction track record. 

Look for: 

• Verified proof of funds, lending commitments, or private equity or other financial backing 
• A history of completed acquisitions, ideally in the same industry 
• References from other sellers or intermediaries 

Sellers should prioritize buyers who offer transparency and certainty. A key aspect of such an approach is a commitment not to “retrade” offers, meaning they will not revise terms after an initial agreement has been reached.  

Long-Term Intentions and Exit Strategy 

It’s important to understand the buyer’s long-term vision for the business. Will they operate it as a standalone entity? Integrate it into a larger platform? Expand it into new markets? Is there a plan to sell the consolidated business in the future? 

For example, some buyers may intend to consolidate operations, rebrand, merge teams, and introduce best practices and technology platforms, unlocking both synergies and greater growth potential. Alternatively, other buyers may maintain the seller’s brand and continue to operate the business as a separate, standalone entity, with operations remaining generally unchanged. Sellers should consider which option aligns with their hopes for the company’s future. 

Sellers should inquire about a buyer’s plans for a future sale, as this could have ramifications for both a seller’s earnout or a rollover investment in the buyer’s equity, as well as their employees, customers, and legacy. Understanding a buyer’s longer-term vision is critical to selecting the right buyer who will deliver on the seller’s stated future goals and objectives for their business. 

The Buyer Interview: Questions Every Seller Should Ask 

To properly assess fit, sellers should treat the buyer selection process like an executive interview. Key questions include:
Why do you want to acquire our business?
What is your vision for the next 3–5 years?
How do you plan to handle employees and clients post-sale?
What is your acquisition experience in this industry?
Can you provide references from prior transactions? 

A serious buyer will answer confidently, provide relevant examples, and demonstrate a thoughtful transition plan. 

It's More Than a Sale — It's a Succession 

Selling a commercial cleaning business isn’t just a financial transaction; it’s a succession plan. The right buyer will carry forward the founder’s legacy, take care of the people who built the company, and preserve the service standards that clients have come to rely on. 

Sellers are ultimately looking for the buyer that will lead their company into the future in a way that honors their employees, their clients, and their legacy. As such, the right buyer will see and deeply value what a seller has built, not just what they can extract from it. 

By evaluating buyers across operational, cultural, financial, and strategic dimensions, sellers can confidently choose a partner who will honor the past and build on it, ensuring their business remains strong and successful long after the ink is dry. 

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 38 acquisitions. 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.