Commercial Window Cleaning & Building Maintenance
With a 27% profit margin and over 1,000 clients!
With a 27% profit margin and over 1,000 clients, this specialty exterior window cleaning and building maintenance company is in a prime position for growth! Services for this Central Iowa business include window cleaning, high-rise window cleaning, custom holiday lighting design, hanging & takedown, graffiti removal, pressure washing, brick sealant, commercial garage floor cleaning and line striping, caulking, light bulb changing, hard water removal from glass & brick, and brass & stainless polishing/cleaning. Holiday lighting services were added 10 years ago and continues to bring in well over $100k per year in revenue; 50 new clients were added in 2020 alone. They have a strong recurring client base, with 75% of their projects comprised of maintenance or repetitive work. Their highly skilled and long-tenured workforce includes full-time and part-time W2 employees, all flexible and capable of performing any job request. Part-time seasonal employees are hired during the busy seasons (spring & fall), as those months tend to add 20% more to the normal workload, and part-time employees are also hired in the winter to assist with holiday lighting services.
The company uses a small warehouse space (a building owned by the business owner) for equipment; the owner leases the building to the company. However, this space is much larger than what is needed for the company to run successfully; the workspace needed for a new owner is very flexible. The team would need enough parking for themselves and work vehicles (with costs around $50 for each spot per month), and a relatively small space would be needed to store equipment.
Priced at $795,000, a 10% down payment of $79,500 returns $131,399 in the first year after debt payments – a 165% return on investment! With a strong recurring client base already established and the capability of working at height, there is ample opportunity for growth. Expanding the service area to include a more regional customer base, taking on more projects in the residential market, add additional building maintenance services, and increasing the marketing efforts for certain services such as tuckpointing & caulking sealant, would be great opportunities to boost revenue.
Year Established: 1984; under current ownership since 2004
Location: Central Iowa
Service Area: 90% local, 10% regional
Services Window cleaning, high-rise window cleaning, holiday lighting hanging & takedown, graffiti removal, pressure washing, brick sealant, commercial garage floor cleaning and line striping, caulking, light bulb changing, hard water removal from glass & brick, brass & stainless polishing/cleaning
Clients: Corporations, Property Owners, Property Managers; 90% commercial, 10% residential
Number of Clients: 1,000+
Lease: Small warehouse space is rented for $4,000/month; however, this business could be run from a home office
Reason for Selling: Relocating; approaching retirement
Personnel: FT & PT W2 employees + seasonal employees as needed
Seller Training Period: 3-6 months
Growth Opportunities: Expand the service area, expand more into residential market, add additional building maintenance services, increase tuckpointing & caulking services
Current Owners’ Responsibilities: Owner 1: Manages crews & customers, bookkeeping/admin; Owner 2: Not active in the business
- List Price: $795,000
Cash Flow Analysis
|Description of Financial Statement||P&L Statement||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$117,298||$102,299||$-61,784|
|Compensation to Owner||$46,981||$45,000||$45,000||Owner|
|Other unrelated Salaries||$46,981||$45,000||$45,000||Owner's Spouse|
|11% Tax on total W2 Salaries||$10,336||$9,900||$9,900|
|Home Office Expense||$3,000||$3,000||$3,000||$3,000/year|
|Training||$2,785||$0||$0||EO Retreat for Owner|
|Owner's Auto Insurance||$2,760||$2,760||$2,760||$229.78/month|
|Owner's Auto Fuel||$3,000||$3,000||$3,000||$250/month|
|Seller's Cash Flow = Total Addbacks + Net Income||$233,915||$296,006||$145,962|
|Profit Margin||27.27 %||31.49 %||20.12 %|
Offer Price: $
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2020 Cash Flow
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Buyer's Return on Investment (ROI)
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