Selling a cleaning business: A complete guide to valuation and sale

Why are cleaning businesses attractive to buyers?

Cleaning businesses are highly sought after in the SME sales and acquisitions market thanks to one fundamental feature: recurring revenue. A cleaning business with a solid portfolio of contracts generates predictable cash flows month after month, which makes it a stable and financeable investment.

According to ASPEL's White Paper on the Cleaning Sector (Libro Blanco del Sector de la Limpieza, 2025), prepared with data from the INE, the sector had a turnover of €13,709 million in 2023 and 543,755 paid employees. It is a mature but fragmented market: thousands of SMEs compete for contracts ranging from cleaning blocks of flats (comunidades de vecinos) to industrial services for large corporations.

For the owner who wants to sell, this fragmentation is good news. Facility management groups, investment funds and entrepreneurs looking for businesses with stable cash flow are actively buying cleaning businesses — especially those with formalised contracts and established work teams.

How much is a cleaning business worth?

The value depends directly on normalised profit and on the quality of the recurring revenue. This is an indicative estimate based on Alcara Partners' valuation model.

Valuation multiples

Method	Range	Median
SDE (businesses < €1-2M turnover)	1.5× – 3×	2.2×
EBITDA (businesses > €1-2M turnover)	3× – 5.5×	4×

Why is the range so wide?

The difference between the lower end (1.5× SDE, seller's discretionary earnings) and the upper end (3.0× SDE) can amount to hundreds of thousands of euros. What separates a cleaning business worth 1.5× from one worth 3.0× comes down to three factors:

1. Formalised contracts vs. verbal agreements: A signed contract with a defined term and renewal clauses is worth much more than a "lifelong client" with nothing on paper.
2. Portfolio diversification: 50 medium-sized contracts are more valuable than 5 large ones.
3. Independence from the owner: If the business runs without you, it is worth considerably more.

Illustrative valuation example

A cleaning business in the province of Valencia with these figures:

• Turnover: €600,000
• SDE: €95,000
• 85% recurring revenue (monthly contracts)
• 35 active contracts (residential buildings, offices, clinics)
• 18 employees
• Owner dedicated to sales and coordination

Applying the median SDE multiple (2.2×): €95,000 × 2.2 = €209,000

If the contracts are properly formalised and the portfolio is diverse, it could rise to 2.8×: €95,000 × 2.8 = €266,000

The difference of €57,000 is earned by preparing the business properly before selling.

Factors that determine the value of a cleaning business

Experienced buyers assess very specific aspects of this type of business. Knowing them allows you to prepare your business better and justify a higher price.

The contract portfolio: the main asset

The heart of a cleaning business is its contract portfolio. Buyers analyse:

• Type of contracts: Contracts with public authorities (public tenders) provide stability but tight margins. Private contracts (companies, residential buildings, clinics) usually have better margins but a shorter guaranteed term.
• Term: The term varies by contract, normally with a renewal option. A portfolio of recently renewed contracts is more valuable than one with contracts about to expire.
• Renewal rate: What percentage of contracts is renewed? A high and stable rate is an excellent sign.
• Margin per contract: Not all contracts are profitable. The buyer will want to see the profitability of each contract or at least by segment.
• Staff subrogation: The sector collective agreement requires the staff assigned to a contract to be taken over when the company providing the service changes (art. 17 of the I Convenio colectivo sectorial de limpieza de edificios y locales, the national collective agreement for the building and premises cleaning sector). This can be an advantage (it guarantees workforce continuity) or a burden (high labour costs), depending on the case.

Employee retention

In the cleaning sector, staff turnover is one of the biggest operational challenges. A business with low staff turnover demonstrates good people management and is significantly more attractive.

Factors that contribute to retention:

• Stable (not temporary) contracts
• Salaries above the collective agreement
• Reasonable work routes
• A good relationship between coordinators and workers

Percentage of recurring revenue

The higher the percentage of revenue that comes from recurring contracts (regular cleaning) compared with one-off services (construction cleaning, post-construction cleaning, clearances), the higher the valuation. A business with a very high proportion of recurring revenue tends to sit in the upper half of the multiples range.

Equipment and logistics

The condition of the assets matters less than in other sectors (there is no heavy machinery), but it is still taken into account:

• Scrubber-dryers, industrial vacuum cleaners, equipment for cleaning at height
• Vehicles for transporting staff and materials
• Storage for products and materials
• Management software (routes, time recording, quality control)

Certifications and registrations

Holding certifications such as ISO 9001 or ISO 14001 or, if the business provides disinfection services with biocides, registration in the ROESB — the official register of biocide establishments and services (Registro Oficial de Establecimientos y Servicios Biocidas), governed in the Valencian Community (Comunidad Valenciana) by Orden 1/2013 of the Conselleria de Sanidad, the regional health department — can be decisive for keeping certain contracts and bidding in public tenders. They are a tangible added value.

Who buys cleaning businesses?

The buyer profile is varied, which creates competition and favours the seller.

Facility management groups

Large integrated services companies looking to grow through acquisition. They buy to gain a client portfolio, geographical presence and turnover. They can pay more because they generate real synergies (centralised purchasing, route optimisation, cross-selling of services).

Entrepreneurs looking for stable cash flow

Professionals who want to leave the corporate world and acquire a business with predictable revenue. Cleaning appeals to them because of its relative operational simplicity, recurring revenue and low technical knowledge barriers (you do not need to be a cleaning expert to run a cleaning business).

Competing companies

Other business owners in the sector looking to scale up by absorbing competitors. They buy to gain contracts, employees and coverage in areas where they are not present.

Financial investors

Investors looking for businesses with stable cash flow and potential for professionalisation. They buy the company, install professional management and scale it up — on its own or as a platform for future acquisitions.

How to prepare your cleaning business for sale

Preparation is where real money is made (or lost). Ideally, start between 12 and 24 months before putting the business on the market.

1. Formalise all contracts

Review your portfolio and make sure that every client with a recurring service has a signed, current contract. Include: scope of the service, frequency, price, term, renewal conditions and notice of termination.

2. Separate your roles

If you are the one who coordinates the routes, handles complaints and negotiates with clients, start delegating. Hire or train a coordinator who can take over your operational role. The goal is that you can go on holiday for a month without anything falling apart.

3. Professionalise management

Implement (if you do not already have one) management software that records working hours, controls quality and generates reports. Buyers want data, not hunches.

4. Clean up the accounts

Remove personal expenses from the company's accounts. Make sure the last 3 financial years faithfully reflect the reality of the business. If there is undeclared activity, start bringing it to light — a buyer will only pay for what they can verify.

5. Renew contracts before selling

If you have contracts that are about to expire, try to renew them before starting the sale process. A contract just renewed for 2-3 years is worth much more than one that expires in 4 months.

Legal aspects specific to the sector

The cleaning sector has legal particularities that directly affect a sale.

Staff subrogation

The sector collective agreement for cleaning requires workers to be taken over when the company providing the service under a contract changes (art. 17 of the I Convenio colectivo sectorial de limpieza de edificios y locales). In a sale, the buyer takes on the workforce: if it buys the shares, the company remains the employer; if it buys the business, through the transfer of undertakings (art. 44 of the Estatuto de los Trabajadores, the Spanish Workers' Statute). And if it later loses a contract, the assigned staff move to the new contractor. It is important to document clearly which employees are assigned to which contracts.

Public tenders

If you have contracts with public authorities, the structure of the transaction matters: if the shares are sold, the contractor remains the same company; if the business or the line of activity is transferred, the contract continues with the acquirer provided it meets the required capacity and solvency, and the contracting authority must be notified (art. 98 of Ley 9/2017, the Spanish Public Sector Contracts Act); assigning a specific contract to another company requires the tender documents to allow it and the prior, express authorisation of the contracting authority (art. 214). This can complicate and lengthen the transaction. An adviser with experience in the sector will know how to manage this procedure.

Occupational risk prevention

The buyer will check that the company meets all its occupational risk prevention (PRL) obligations: an up-to-date prevention plan, worker training, medical check-ups, risk assessment. Non-compliance here can be grounds for a price reduction or even for the transaction to fall through.

If you are interested in exploring the market for cleaning businesses in the Valencian Community, you can browse our businesses currently for sale.

Frequently asked questions about selling cleaning businesses

How long does it take to sell a cleaning business?

The process usually takes several months from the start of marketing. Businesses with formalised contracts and good documentation tend to complete faster. Those that depend on public contracts may need more time because of the procedures with the contracting authorities.

Can I sell if most of my clients are on a handshake basis?

You can, but the value will be significantly lower. Before selling, try to formalise at least the most important contracts. Even a simple one-page contract provides more security than a verbal agreement.

What happens to public contracts if I sell the business?

If you sell the shares of the company, the public contracts do not change hands (the company remains the same). If you transfer the business or the line of activity, the contracts continue with the buyer provided it meets the required capacity and solvency (art. 98 of Ley 9/2017); assigning individual contracts requires the tender documents to provide for it and the prior authorisation of the contracting authority (art. 214). The first option is usually cleaner for transactions with a significant public component.

Do employees have to know that I am selling?

Not during the negotiation process. Confidentiality is crucial in this sector, where the personal relationship between coordinators and clients is key. If you sell the shares, employees are usually informed once the transaction has completed, with a guarantee that their jobs will continue. If what is transferred is the business itself, article 44 of the Estatuto de los Trabajadores requires the seller and the buyer to inform the workers' representatives (or, if there are none, the workers affected) sufficiently in advance, before the transfer. It is advisable to confirm this with an employment adviser.

How does seasonality affect value?

Cleaning is, in general, a sector with little seasonality, which is an advantage. However, if a significant part of your revenue comes from tourism cleaning (hotels, holiday apartments), there will be some seasonality that the buyer will discount.

Is it worth investing in certifications before selling?

Yes, especially ISO 9001 if you do not have it. Not only does it improve the valuation directly, it also lets you bid for contracts with large companies and public tenders that require this certification. The cost can pay off in the sale price.

Can I sell just part of the client portfolio?

It is possible, but less common and more complex. The norm is to sell the whole company (shares or assets). If you only want to dispose of some contracts, technically that would be an assignment of contracts, not a business sale.

What happens if an important client terminates after the sale?

This is one of the risks that buyers manage through earn-out clauses or by holding back part of the price (a retention). Part of the price may be made conditional on the main clients staying for a period after completion.

Conclusion

Cleaning businesses with recurring contracts, stable teams and good documentation sell well and quickly. The key lies in preparation: formalising contracts, reducing dependence on the owner and professionalising management can significantly increase the sale price compared with a business "as is".

If you own a cleaning business and want to know its market value, request a free, confidential valuation. Without obligation.

References

1. ASPEL (Asociación Profesional de Empresas de Limpieza, the Spanish professional association of cleaning companies). Libro Blanco del Sector de la Limpieza: datos, desafíos y el futuro de un motor económico indispensable (White Paper on the Cleaning Sector), prepared by Javier Díaz-Giménez (2025).
2. I Convenio colectivo sectorial de limpieza de edificios y locales (national collective agreement for the building and premises cleaning sector), art. 17 (BOE of 23 May 2013).
3. Ley 9/2017, de Contratos del Sector Público (Spanish Public Sector Contracts Act), arts. 98 (succession of the contractor) and 214 (assignment of contracts).
4. Real Decreto Legislativo 2/2015, texto refundido de la Ley del Estatuto de los Trabajadores (consolidated text of the Spanish Workers' Statute), art. 44.
5. Orden 1/2013, de 9 de enero, de la Conselleria de Sanidad, por la que se dictan normas para la inscripción, comunicación y funcionamiento del Registro Oficial de Establecimientos y Servicios Biocidas de la Comunitat Valenciana (order of the regional health department on the official register of biocide establishments and services of the Comunitat Valenciana) (DOCV, 17 January 2013).