Regardless of the time or situation, janitorial services are often in high demand in California and elsewhere. In light of the events of 2020, an increasing number of companies are outsourcing their janitorial and cleaning services to professional companies. Now may be one of the best times for selling a janitorial services company in California.
If you are considering valuing and selling your company within six to twelve months, give Andrew Rogerson, a certified business broker based in Sacramento, California, a Call Toll-Free at (844) 414-9700 or email me at support@rogersonbusinessservices.com, who services the whole state of California.
Here are some of the reasons why, as well as some of the things you should be prepared for.
The Demand for Professional Janitorial Services
Cleanliness and sanitation have always been vital to the safety, security, and comfort of both employees and customers; however, their importance has become even more crucial in recent times. Companies that previously had internal departments have also outsourced this critical job.
And like in other industries, the riches are in the niches. While national companies secure some large contracts, smaller companies that specialize in specific regional areas or focus on particular industries tend to excel.
As demand increases, so does opportunity. With that additional opportunity, your business may be worth more than you think.
The Value of Your Business
That’s the first place to start. Before you do anything else, you will want to know the value of your business. Knowing what it’s worth is the first step in making informed decisions about the Timing of selling your business.
And that’s an important thing to consider. It typically takes six months to a year to sell a business. If you anticipate selling your business within the next couple of years, starting with a business evaluation can help you understand your current position.
You do have choices. On our website, we offer a seven-step guide to valuing your business, along with an email program that walks you through the business valuation process using a spreadsheet. This program introduces you to the process of selling your business and helps you understand the paperwork and other financial documents necessary to accurately value your business.
When you need a certified business valuation, we can assist you with that as well. This provides you with a tool to determine the purchase price of your business and to demonstrate its value if your Buyer requires financing to acquire it.
The foundation of any plan to sell your business is an accurate business valuation.
Equipment Valuation
As a janitorial business, you utilize various pieces of equipment in your day-to-day operations. That equipment can be part of the company’s sale, but it does have an impact on the price of your business and how the sale is structured.
There are a lot of tax implications to how this works out, and a business broker, along with your accountant, can help you understand how this will work for you and the best way to reach a compromise that will satisfy both you and your Buyer.
The first step is to determine the value of your equipment. It is also essential to evaluate whether it is up to date, or if it needs to be updated or replaced, before selling your business. For example, you may have vans or trucks that are nearing the end of their commercial usefulness in California. It may be worth replacing those vehicles to increase the value of your business. Alternatively, you could sell them apart from the deal, and sell the business without them.
Whatever method you choose, and whether or not you should make updates, can make the difference between a successful sale and a deal that doesn’t go through. Your business broker can help you make those decisions.
The Growth Potential of Janitorial Services
One thing a Buyer often looks for in a business is the growth potential. If you have a good company, but it is not growing, it is harder to sell. However, a business that is increasing in value and business volume means a Buyer will be able to reap their ROI much faster.
The potential growth in California janitorial business services was already high before the recent pandemic, and with demand higher than ever, so is the growth potential. When run properly, this type of business service industry can be incredibly profitable.
This can impact the intrinsic value of your business, the amount a Buyer is willing to pay beyond the numbers in the business valuation. This is a critical element to understand and to share with your potential buyers.
Advantages of a Certified Business Broker
There are several reasons you should not try to sell a business on your own. First, you need to understand the ins and outs of selling a business, including the current market landscape, where to find buyers, and other key considerations that a business broker is already familiar with.
Secondly, selling a business requires a significant amount of time. It can be almost a full-time job. However, you still need to run your business while it is for sale, maintaining its profitability, keeping your customers and clients satisfied, managing your employees effectively, and keeping your finances in good shape. Your business broker will handle the sales process, allowing you to focus on what you do best: running your business.
Additionally, a business broker has successfully sold numerous businesses similar to yours. This may be the only time you ever sell a business. They know the steps you need to go through to market your business and how to help you overcome any hurdles you may encounter during the process.
Are you ready to sell your California janitorial services business? Feel free to contact us today. We look forward to hearing from you because we are eager to serve as your business broker. Explore other companies like yours that Rogerson Business Services has previously sold.
Now may be the best time to sell your business. We’re here to help every step of the way.
If you are considering valuing and selling your company within six to twelve months, give Andrew Rogerson, a certified business broker based in Sacramento, California, a Call Toll-Free at (844) 414-9700 or email me at support@rogersonbusinessservices.com, who services the whole state of California.