What’s My Commercial Janitorial Business Worth?

How Commercial Janitorial Businesses Are Valued

Commercial janitorial businesses are valued on Seller's Discretionary Earnings (SDE), with the contract base quality being the dominant factor. Buyers in this space are buying predictable, contracted revenue — how long your clients have been with you, what their contracts look like, and how much revenue walks out the door each year matters more than total revenue. A janitorial company with 90% retention on multi-year contracts is valued very differently from one with high churn on month-to-month accounts.

SDE = Net Profit + Owner’s Salary + Owner Benefits + Discretionary Expenses

They then multiply your SDE by an industry-specific multiple derived from comparable transactions. For Commercial Janitorial businesses, that multiple currently ranges from 2.2x to 3.8x.

Current Commercial Janitorial Multiples

These ranges reflect recent transaction data for commercial janitorial and facility services businesses in the $1M–$10M revenue range. Businesses with long-tenure commercial clients and low churn consistently trade at the upper end.

Want to understand how these multiples work and what EBITDA vs. SDE means for your business? Read our full guide: How Service Businesses Are Valued.

What Drives Your Number Up (or Down)

Two Commercial Janitorial businesses with the same revenue can be worth very different amounts. Here are the factors that separate high-multiple from low-multiple businesses:

Drives Multiple Up

• High client retention — 90%+ annual retention on commercial contracts
• Multi-year agreements — contracts with 2+ year terms and auto-renewal clauses
• Diversified client base — no single client over 15% of revenue
• Quality control systems — inspection protocols, customer scorecards, and documented SOPs
• Add-on services — floor care, window cleaning, day porter services that increase per-client revenue

Drives Multiple Down

• High employee turnover — constant recruiting and training cycles erode margins
• Client concentration — one or two accounts make up 40%+ of revenue
• Month-to-month contracts — no contractual commitment beyond 30-day notice
• Owner manages all client relationships — no account managers between owner and customers
• Low-margin accounts — competing on price rather than quality creates a race to the bottom

If you’re not sure where you stand on these factors, our Exit Readiness Assessment scores you across all of them in about 3 minutes.

Frequently Asked Questions

What is the average commercial janitorial business worth?

Commercial janitorial businesses typically sell for 2.2x to 3.8x their Seller's Discretionary Earnings (SDE). For a janitorial company with $200K in SDE, that translates to an estimated value of $440K to $760K. Companies with long-tenure commercial clients, low churn, and operations managers in place trade at the higher end.

What SDE multiples do janitorial businesses trade at?

Based on recent transaction data, commercial janitorial businesses trade at SDE multiples of 2.2x to 3.8x. Larger operations valued on EBITDA trade at 3x to 6x. The critical metrics are client retention rate, contract length, and revenue diversification across accounts.

How can I increase the value of my janitorial business before selling?

Focus on contract quality: convert month-to-month accounts to multi-year agreements, reduce client concentration so no single account exceeds 15% of revenue, implement quality control systems with documented inspections, and build an account management layer so client relationships don't depend solely on you.

Get Your Free Commercial Janitorial Valuation Estimate

Our free valuation tool uses real Commercial Janitorial SDE multiples and adjusts for your specific value drivers. It takes about 3 minutes.

Planning your exit? Read our 12-Month Exit Timeline for a step-by-step preparation guide.