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Cleaning Service Business Valuation Formula: |
Cleaning Businesses: This is a general business valuation formula or pricing method for residential or home cleaning 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 established small cleaning business for sale. |
Cleaning (residential/homes) Services: Approximately 40% of annual gross sales |
Broker Comments: My experience with valuing and selling established residential or home cleaning businesses in Arizona is they generally support the 40% annual revenue or sales formula fairly well. It’s been my experience also that independent (non-franchised) cleaning services are easier to sell and support higher valuations and asking prices than franchises. Another issue that sometimes affects cleaning business sales (for tax & immigration reasons) in our market is whether the cleaning crews are employees or independent contractors. |
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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 and local conditions. |