How do I check a cleaning company’s pricing against its workload before buying?
Take each contract and work out the crew hours, travel and supplies it actually uses, then compare that with what the client pays. Ask for scheduled hours per site alongside invoices. Contracts that look busy but pay thinly will not show up in total revenue.
Revenue alone hides a lot in cleaning. Ask for a list of every site with the contract rate, the hours scheduled each visit, the crew size and the visit frequency. Then set that against payroll records for the same sites. Where the seller cannot produce hours by site, treat the margin on that site as unknown.
Look at what is bundled into the price. Floor care, window work, supplies, extra visits and after-hours calls are often absorbed quietly. Ask which clients ask for extras that are never invoiced, and whether the seller has been holding old rates to keep a friendly account.
Travel time deserves its own look. A distant site with a small contract can use more of a crew’s day than it earns. Ask how crews move between sites and who pays for vehicles and fuel. Finally, ask whether any rates were set by the seller personally with long-standing clients. A new owner may find those hard to raise without losing the account. Your accountant can help you rebuild a true margin per contract before you make an offer. Compare the pricing with what the market will bear, too. Ask when each rate last changed, whether clients have pushed back, and what the seller would raise first. A margin that rests on stale rates may look weaker once wages and supplies catch up.
Key takeaways
- Match contract rates to scheduled hours, site by site.
- Ask what extras the crews do without charging for them.
- Treat any site without hours records as an unknown margin.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are financial statements?
- 03Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
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