How do I prepare a carpet cleaning business for sale?
Prepare by showing a buyer which customers repeat and which came by referral or restoration work, documenting the truck-mount and van, writing down how you quote and run a job, closing out damage claims and planning how you will hand the business over.
A buyer of a carpet cleaning business wants to know three things: where the work comes from, whether it will keep coming and whether the equipment will keep running. You can answer each with paper instead of promises. Start early, because tidy records take time to build.
Show where the work comes from
Split your jobs into repeat homeowners, referrals, property managers and restoration or insurance work. Each behaves differently. Repeat customers suggest loyalty to the business, while jobs that come through a referrer may depend on you personally. Be honest about which is which. A buyer will find out in due diligence anyway.
Document the equipment
List the truck-mount or portable units, the van, hoses, wands and tools, with age, service records and any financing. Note which pieces you own outright and which are leased. A buyer will inspect the machines, so fix small faults first and keep the maintenance log current.
Write down how you run a job
Put your quoting method, job steps, product choices, scheduling and follow-up on paper. If the business lives in your head, the buyer is buying you, not a system. Writing it down also makes the handover easier and shows the business can run without you in the van.
Close out claims and plan the handover
Resolve outstanding damage complaints where you can, and keep a record of how earlier ones ended. Then decide how long you will stay to introduce customers and train the buyer. The buyer’s checklist for carpet cleaning shows what the other side will ask.
Related reading
15 pages on the same subject, grouped by topic.
Selling
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- Expert answerWhat counts as cleaning up a business before a sale?
- Expert answerHow do I sell a house cleaning business when clients only know me?
- GuideSelling a cleaning business in Canada
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Valuation
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to minimize negotiations when selling your business
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentBusiness valuation: What’s your company worth?
- 04Canadian Federation of Independent BusinessResearch dataSuccession Tsunami: Preparing for a decade of small business transitions
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