Pros and Cons of M&As for Professional Cleaning Companies

Key Takeaways:
• Mergers and acquisitions are reshaping the commercial cleaning industry as building service contractors pursue growth, scale, and succession planning.
• Successful acquisitions depend on more than financial performance—they require strong operational fit and cultural alignment.
• Industry consolidation is creating new opportunities for commercial cleaning, jan/san, and facility management organizations.

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Trends in the commercial cleaning industry often mirror those pervasive across all forms of business. Mergers and acquisitions (M&A) are no exception.

The value of M&A deals in the United States between February and April 2026 was up 27 percent compared to the year prior, according to EY Parthenon, Ernst & Young’s global strategy and consulting arm. The volume of these deals rose at a less exciting clip during this span—11 percent—which makes sense. Megadeals, according to EY Parthenon, account for most of the money generated.

Commercial cleaning gurus across North America see things happening similarly within their beloved industry. M&As have been on the rise in the industry for years, for various reasons. George Boutsalis, President of Impact Cleaning Services, has been providing janitorial solutions for 21 years—all with his family’s business. In his opinion, M&As have been prevalent in the industry during his tenure because they present opportunities for recurring revenue, economies of scale, and earnings before interest, taxes, depreciation, and amortization (EBIDTA) arbitrage. Then, during the COVID-19 pandemic, Boutsalis thinks that many business owners chose to take advantage of a time when capital was cheap and EBIDTA multiples were skyrocketing.

Although some of what has driven consolidation in contract cleaning over the years persists, there is more at play in 2026, specifically a building service contractor’s (BSC) ability to plan. As Managing Partner and Co-Founder of Knowledgworx, LLC, Jim Peduto works with CEOs in the commercial cleaning industry on how to win market share and improve performance. He also tracks M&As at various levels. From what he sees, retiring building service contractors BSCs examining succession planning is one reason for the increase in M&A activity.

“[Succession planning] is hard work, and when it gets put off, there is no family member or internal executive ready, willing, or capable of taking over the business. That forces a practical decision: professionalize the company quickly, bring in outside leadership, sell to a larger platform, or risk losing value over time,” Peduto explains. “For many owners, a sale becomes the cleanest way to protect their legacy, provide continuity for employees and customers, and convert decades of work into liquidity.”

Another reason for the current M&A boom in commercial cleaning could be the increasing popularity of artificial intelligence (AI). But maybe not in the way one might think. Despite the growth of technology in cleaning tasks, contract cleaning as a business might actually be protected from the threat of AI, making it more appealing to both outsiders and those who want more share in the industry.

“Cleaning is a ‘boring’ business. Not in a negative sense, but rather it is currently fairly insulated from the AI disruption wave,” says Boutsalis. “Capital coming in doesn't have to worry about Anthropic obliterating the business model with their latest feature release.”

Another factor for the rise of M&As is valuation. Owners of commercial cleaning companies spend years building their business to greater heights. But like a weightlifter or a person who sheds many pounds, cleaning companies can almost plateau after a certain amount of success. Eventually, the only way for that organization to reach its full value is through a sale—which, of course, is one reason there are less family-owned commercial cleaning companies.

“The next generation, whether family members or key managers, may not have the financial capacity to buy the business at fair market value. As a result, the owner faces a difficult choice: Discount the business for an internal transition, carry significant seller financing risk, or sell to an outside buyer that can pay the value the business has earned,” shares Peduto. “In many cases, a strategic sale becomes the most viable way to fairly monetize decades of work.”

What to Look For

4M Building Solutions has over 6,900 team members—the company doesn’t like to use the term “employee”—cleaning 215-million-square-feet of space across 27 states. This wouldn’t be possible had the company not been growing through acquisitions since the 1980s. While 4M Building Solutions has wheeled and dealed for decades, 15 of its 41 acquisitions have occurred since December 31, 2022, when the investor group O2 acquired and partnered with the contract cleaning company.

The numbers don’t lie—4M Building Solutions is in full “buy now” mode. The status makes sense because the company is not only stable, but also prospering. It is in a position where it can—and probably should—expand outwards to take advantage of good times. The company wants to increase its global market share within the markets it currently serves. Acquisitions get 4M Building Solutions further into those current markets, and new ones, too.

“That is [all] a function of acquisitions,” says Andrew Rust, Head of Corporate Development and M&A at 4M Building Solutions. “And the end markets you serve ultimately have an impact on the value of your business because certain end markets are stickier or higher margin, harder to break into, and have higher barriers to entry. Others are less sticky, more competitive, low margin, etc.”

Rust affirms Peduto’s point that many owners of commercial cleaning companies are nearing retirement age and seeking a clean break. He and his team want those owners looking for an exit strategy to make 4M Building Solutions their first choice when taking the off-ramp, whether that be into a full-on partnership or onto a one-way straightaway into the sunset.

Make no mistake, 4M Building Solutions isn’t courting just any operation looking to sell. In fact, it’s just the opposite. The company is selective of which businesses it will explore an acquisition with, whether it’s that company reaching out to 4M Building Solutions or vice versa. In some cases, a janitorial services company will engage an investment banker or broker to market their business broadly, which 4M Building Solutions has done. Another method is for a company to deploy what Rust calls “finders” to identify an acquisition target.

Like an NFL team surveying what prospect to select with its first-round pick, a commercial cleaning company seeking to acquire another could look for one with both a high floor (one that is a safer choice with little risk of failure), a high ceiling (a company with serious potential to grow even further), or both. Because of the tools at its disposal, 4M Building Solutions is currently partial to acquiring high ceiling companies.

“We bring the resources, the know-how, the scale, and the geographic presence to maximize the growth opportunity for that business and for those team members that might not be available as a standalone business,” Rust says.

There are a variety of other factors a commercial cleaning company looks for in a M&A prospect—some companies that do M&As often have a whole pre-Letter of Intent playbook. However, some companies will refuse to go that far in the process unless they see a very important detail from the start: the right culture.

“The No. 1 reason acquisitions or mergers fail is a lack of cultural cohesion,” says Rust. “No two cultures are the same, but in my view, if there is a shared set of core values that are sufficiently aligned, that’s a great place to start. To me, in the janitorial and building services space, the character, ethics, and values of the owner are what permeate the organization. Taking the time to know that person gives you good insights into whether their organization is going to fit with ours.”

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Why M&A Deals Fail in Commercial Cleaning