How do I prepare a janitorial company for sale?

Buyers of janitorial companies look for work that continues after the owner leaves. That depends on what is written down and who holds the relationships. You can improve both well before you list. Start early, because contracts, people and records take months to change, and a buyer will notice anything that was fixed at the last minute.

Put handshake accounts in writing

List every site you clean and mark which ones have a signed agreement. For the rest, ask the client for a simple written agreement covering scope, schedule, price and notice. Some clients will agree easily; others will not. Know which is which before a buyer asks. Your lawyer can check that each agreement says what you think it says.

Renew or extend contracts before listing

A contract near its end looks like a client who may leave. Where it makes sense, talk to clients about renewing or extending before you go to market. Do not promise anything you cannot deliver, and do not hide the sale from a client who asks. Many owners find it helps to decide with their lawyer when and how clients will be told.

Build site files and a supervisor layer

Write a file for each site: tasks, schedule, access, supplies, special instructions and the client contact. Then make sure a supervisor, not you, is the person clients call. A buyer can step into a business where the knowledge is in the files and the relationships are shared with trusted staff.

Tidy the books by site

Be ready to show revenue, labour and supplies for each site, not only for the company. Separate your own pay from the cost of running the crews, and keep personal expenses out of the books. How do I clean up my financial records explains what an accountant will want to see.