By Tim Murch and Andrew Rust

When an owner of a commercial cleaning business thinks about selling the business, many questions will cross his or her mind. How do I get the word out that I want to sell? Will anyone be interested? What should my asking price be? 

Each is a valuable question and the answers will arrive as the process gets underway. But another consideration is equally important:  What is a buyer looking for when they want to make an acquisition? 

Understanding a buyer’s mindset is a game-changer for any owner considering a sale. It helps them to strategically position the business when the time comes, and gives them the insight to make key adjustments—or gather critical data—well before stepping into the acquisition arena.  

Let’s dive into what buyers are truly after. Their goals typically center around the following: 

  • A low-risk investment 

  • Minimizing the risk of inheriting problems/issues 

  • A high likelihood of a smooth process of purchase and transition 

  • Continued growth of both the top and bottom lines post-closing 

Next, we’ll drill down to look deeper at the factors a buyer considers before making an offer. 

Attributes a Buyer Looks for in a Cleaning Business 

When evaluating a cleaning company for acquisition, an astute buyer considers a lengthy list of “must haves.” The list is long for good reason: it’s a significant purchase, and the buyer is wise to leave no stone unturned. They will gather as much information as possible to avoid making a bad decision. They’re focused on protecting their own business, so they're not willing to take unnecessary risks.  

Here are the top attributes a typical buyer looks for in a potential acquisition. 

Consistent revenue growth and profitability. A buyer is particularly concerned about how the business has performed over the last three to five years. Significant dips in sales or profits are red flags that could give the buyer pause. A business owner in this situation should be able to explain what led to a downturn and the steps the company is taking to right the ship.  

Serving high-growth end markets. Data centers, distribution centers, and medical clientele are particularly appealing to a buyer.  

Low customer concentration. Diversification of customers across industries provides more stability for the company should one sector experience a downturn. General diversity of customers, even if in the same sector (think private high schools vs. public universities), is a positive sign as well.   

High customer retention. According to industry estimates from ISSA, BSCAI, and market research firm IBISWorld, customer retention rates in commercial cleaning typically range from 60-80 percent, with high-performing companies achieving 85 percent or more annually.  

Those figures represent industry averages, but a serious buyer will typically expect to see at least 85 percent — and ideally something stronger, such as 90-95 percent or higher — in order to maximize the seller’s valuation. This marker gauges how well a company is retaining its customers and driving new sales from its established clients. 

Healthy employee retention rate. The industry average for custodial employees to remain on the job for one year or more is 22 percent. Companies that track and achieve strong 6-month and 1-year retention rates are viewed favorably and are advised to promote this advantage on company websites, social media, or other channels. For one year-retention rates, strive for two to three times the industry average as a benchmark, with a focus on continuous year-over-year improvement.  

Long-tenured employees.  Alongside employee retention rates, business owners can publicize the number or percentage of employees who have remained for 5 years, 10 years, 25 years, or longer. These milestone numbers powerfully highlight a cleaning company’s strength in retaining talent — no small feat in an industry known for its high turnover.  

Positive company culture. Turnover and retention rates hint to culture, but sellers should be prepared to share examples of this, such as servant leadership, frequent recognition of employee accomplishments or work performance, meritocracy, and incentive-based compensation. 

Similar core values. Are the seller’s values closely aligned with the buyers?  Sellers should share their practices related to integrity, innovation, teamwork, and superior customer care. 

Reinvesting in the business. A buyer will be impressed to see a history of investment in the business, particularly with essentials such as continuing education for employees, software upgrades, equipment upgrades, and market expansion.  

Strong safety focus. An excellent safety record is a sign to a buyer that the owner prioritizes employee and customer/occupant safety. Publicizing the safety record, along with any awards or recognition, builds credibility and positions the company as a leader in safety.  

Knowledge is Power 

Awareness of what a buyer looks for in a cleaning business is an important first step in preparing for the acquisition process. 

With this knowledge, the business owner can now take these next steps:  

  1. Gather the data mentioned above. 

  1. For above-industry-average performance in any area, applaud it, share it, and make it easy to find this information online.  

  1. Be forthright and accurate in describing the company culture for the best fit with a buyer. 

Armed with awareness of what buyers want to see, owners can be more confident knowing they are providing the data and background that will attract a buyer and lead to a collaborative, successful sale.  

Check out more in this series:

The Ultimate Checklist: Prepping to Sell

How to Sell Your Business Quickly and Confidently

Key Points for a Successful Company Sale Process

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 5/29/2025