Is buying a housekeeping placement agency different from buying a cleaning company?
Yes. A housekeeping placement agency matches private housekeepers with households and earns from the match, while a cleaning company sends crews on its own payroll and earns from each visit. Revenue, equipment, records and staff questions differ, so confirm which model a listing describes before you ask for numbers.
Housekeeping businesses share a vocabulary, which hides how different they are. One introduces a housekeeper to a household. The other sends a team with supplies to do the work. A buyer who treats them alike will ask the wrong questions and may miss what the business actually depends on.
How each one earns
A placement agency usually earns when it makes a match, so it needs a steady supply of households and candidates. A cleaning company earns on visits and contracts, so routes, schedules and repeat customers matter most. Ask the seller to show a typical month of income for the model they run, and ask what portion came from customers who were already on the books.
Equipment and staff
A cleaning company owns vehicles, supplies and equipment, and it manages crews directly. A placement agency owns little equipment; ask the seller which assets, such as candidate files and the screening process, come with it. The staff questions also differ. For a cleaning company, ask about crew turnover and training. For a placement agency, ask how candidates are found and checked. How workers are classified is for your lawyer.
What the records show
Cleaning company records revolve around schedules, customer accounts and job costs. Placement records revolve around candidate files, household requests, placements and any guarantee given. If you are comparing models, read how residential and commercial cleaning companies differ and notice how little of it applies to a placement agency.
- Who the household pays, and for what
- Who the housekeeper works for day to day
- What would leave the business if the owner left
Related reading
15 pages on the same subject, grouped by topic.
Buying
- Expert answerIs buying a residential cleaning company different from buying a commercial one?
- GuideHow to buy a cleaning business in Canada
- Expert answerWill caregivers stay after I buy a home care agency?
- Expert answerWhat does the owner of a cleaning company do day to day?
- Expert answerWhat insurance should a cleaning company carry when I buy it?
- Expert answerCan I buy a cleaning company with no cleaning experience?
- Expert answerHow do I check a recruitment firm’s fill rate for different types of roles?
Due diligence
- Expert answerWhat should I check in a staffing agency’s bill and pay rates before buying?
- GuideHome care agency due diligence
- Expert answerHow do I check a business for unpaid taxes?
- Expert answerWhat legal tasks should I finish in the first 90 days after buying a business?
- Expert answerWhat should I ask about a boutique inn’s housekeeping staff?
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 the steps to buying a business?
- 03Canada Revenue AgencyGovernmentBuying a business
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