2027 Janitorial & Building Services Company Valuation Report: EBITDA Multiples by Revenue
Janitorial and Commercial Cleaning (NAICS 561720) | Carpet and Upholstery Cleaning (NAICS 561740) | Other Services to Buildings and Dwellings (NAICS 561790) | Transaction Benchmarks 2021–2026 | Updated October 2026 | BMI Mergers & Acquisitions
Building services companies in the lower middle market have generally sold for 3.5x to 8.0x adjusted EBITDA since 2021. EBITDA and revenue size set the range. Contract revenue quality, terms, workforce compliance, customer concentration and the owner’s role in daily operations collectively determine where a valuation ends up.
This report is for owners and executives of commercial cleaning, carpet and upholstery cleaning, pool, exterior cleaning, and other building services companies considering a sale or exit within the next five years.
Building Services Company EBITDA Multiples by Revenue Band
Larger companies sell for higher multiples because they are less risky: they have a larger basket of customers, more managers, more systems, and more ability to absorb shocks. Size also changes who is buying. While smaller companies sell mostly to individual buyers and local competitors, larger companies draw national consolidators and private equity firms, either buying a first company in the sector (a platform) or adding to one they already own (an add-on or tuck-in).
| Annual Revenue | Benchmark Multiple | Typical Range | Most Active Buyers |
|---|---|---|---|
| $2M–$5M | 3.9x | 3.4x–4.4x | Individual buyers, local competitors, franchise resales |
| $5M–$10M | 4.2x | 4.0x–5.1x | Individual buyers, regional operators, PE-backed add-ons |
| $10M–$25M | 5.4x | 4.5x–6.0x | Regional operators, private equity platforms and add-ons |
| $25M–$100M | 6.8x | 5.5x–8.0x | Private equity platforms, national consolidators |
How to read this table. Multiples are enterprise value (the price of the whole business before debt is paid off) divided by trailing twelve-month adjusted EBITDA. Benchmarks and Typical Ranges are BMI estimates blended from private transaction databases, published industry deal data, and our own deal observations from 2021 through 2026. The revenue bands assume margins typical for the industry.
EBITDA Multiples by Sub-Sector, $2M–$10M Revenue
Multiples in this sector also vary by type of business (sub-sector). The table below breaks out the data for companies with $2 million to $10 million in revenue and compares each sub-sector against the others.
| Business Type | Median EBITDA Multiple | Typical EBITDA Multiple Range | Median EBITDA Margin | What It Includes |
|---|---|---|---|---|
| Commercial cleaning and janitorial | 4.0x | 3.5x–4.5x | 16.3% | Contract cleaning of offices and commercial buildings |
| Residential cleaning and maid service | 4.3x | 4.2x–4.5x* | 10.5% | Maid and housekeeping services |
| Carpet and floor care | 4.0x | 3.4x–5.2x* | 15.6% | Carpet, upholstery and floor care |
| Specialty and exterior cleaning | 3.7x | 3.3x–4.2x | 15.3% | Air duct, sewer, equipment, pressure washing, exterior windows, restoration |
| Facility maintenance | 4.4x | 3.8x–5.2x* | 15.8% | General facility and building maintenance |
| Pool service | 3.1x | 2.8x–3.9x | 12.0% | Residential and commercial pool service |
How to read this table. Multiples are deal value divided by trailing twelve-month EBITDA as reported to transaction databases, found in published industry deal data, and BMI’s own deal observations from 2021 through 2026. Ranges show the middle half of deals (25th to 75th percentile); where fewer than five deals in a category report EBITDA, marked *, the range runs from the lowest deal to the highest.
Recurring vs. Non-Recurring Revenue
Buyers generally pay more when historical revenue is contractually set to repeat. In building services, recurring revenue usually comes from scheduled service under an ongoing agreement: nightly janitorial, weekly pool maintenance or cleaning routes, or pressure washing on a set schedule. Non-recurring revenue comes from one-off jobs such as renovations, post-construction cleanup, and emergency work.
Pool service is a useful example. In our data, pool companies focused on recurring cleaning/maintenance and those focused on one-off repairs/renovations earned nearly the same EBITDA margins, 12.3% and 12.0%. However, the recurring maintenance companies sold for a median 3.6x EBITDA. The one-off repair companies sold for 2.8x. With EBITDA near equal, much of that gap reflects the predictability and recurrence of the revenue.
Note that recurring does not have to mean long-term contracts. Many building services agreements can be canceled on 30 to 90 days’ notice, so buyers also look at history and account tenure.
| Revenue Type | Examples | How Buyers Often Treat It |
|---|---|---|
| Scheduled service | Nightly janitorial and day porters; weekly pool routes; window cleaning, pressure washing, or parking lot sweeping on a fixed schedule. | Valued as recurring (assuming good tenure). |
| Periodic work in the agreement | Quarterly floor care, annual carpet cleaning, or yearly duct cleaning written into the scope of work. | Counted as recurring when billing history can prove it repeats. |
| Extra requests from existing customers (“tag” work) | One-off floor stripping and waxing, extra carpet cleaning, pool equipment repairs, move-out cleaning. | Often higher margin. Usually averaged over time. |
| One-time projects | Post-construction cleanup, renovations, restoration and disaster work, 2020–2022 disinfection. | May be removed from EBITDA calculation or valued separately, often at a lower multiple. |
Owners planning a sale should track scheduled service revenue and one-time work revenue as separate line items on the P&L.
Deal Killers: Issues That Can Stop a Sale
These issues can decide whether a buyer signs a letter of intent and whether the deal survives diligence intact. When a buyer goes ahead anyway, it usually protects itself through a lower price, an escrow, or a specific indemnity. Most can be fixed with enough lead time.
| Issue | Why It Matters to a Buyer |
|---|---|
| I-9 compliance and work authorization | Many buyers now review I-9s in diligence. In April 2025, ICE proposed more than $8 million in fines against three Denver janitorial companies. Since March 2026, ICE treats many common I-9 errors, such as a missing date of birth, as violations fineable at $288 to $2,861 per form with no chance to correct. |
| Worker classification | Workers misclassified as independent contractors can create back payroll-tax, overtime, and workers’ compensation liability. Franchise and unit-owner models can carry similar risk. Buyers may require an indemnity backed by escrow, or simply walk away. |
| Wage-and-hour exposure | Off-the-clock work, unpaid travel between job sites during a shift, missed meal and rest breaks, and overtime across multiple sites can each create liability. A pending or recent class action can hold up a deal until it is resolved. |
| Union and pension obligations | Collective bargaining agreements generally stay in place through a stock sale, and asset buyers can still inherit bargaining obligations. SEIU locals, including 32BJ on the East Coast, hold master contracts in many large markets. Participation in a multiemployer pension plan can carry withdrawal liability or other liabilities. |
| California janitorial registration | California janitorial employers must register annually with the Labor Commissioner and provide harassment prevention training every two years. Registration does not transfer, so an asset buyer needs its own before operating. A buyer that keeps the same workforce for the same services can be liable for the seller’s unpaid wages. |
| Financial records | Most buyers ask for at least three years of clean, accurate accrual-basis financial statements (ideally reviewed or audited by a CPA) with support for every adjustment. Many buyers will commission a quality of earnings review to test them. |
| Contract assignment | In an asset sale, contracts with anti-assignment clauses need customer consent, and federal contracts need government approval (novation). In a stock sale, change-of-control clauses can give customers the same exit. Franchise agreements usually require the franchisor’s approval to transfer. No matter what, the buyer will want to know which accounts need approval or signature. |
| Set-aside and federal revenue | An 8(a) contract generally must be terminated if ownership changes, unless the SBA grants a waiver. A large buyer can cost the company its small business status through affiliation; the janitorial size standard, for example, is $22.0 million in average annual receipts. Federal service contracts generally carry Service Contract Act wage and fringe obligations. |
| Insurability | A clean loss history on slip-and-fall, property damage, auto, theft, and workers’ compensation claims helps a buyer add the company to its insurance program at a workable cost. A poor one can raise premiums or keep the company off the program. |
| Customer contract terms | Uncapped liability, broad indemnities, or slow payment terms shift risk onto the service provider. A buyer may discount for risk or exclude the account. |
What Moves the Multiple Within a Band
Once the deal killers are cleared, buyers price a company up or down within its revenue band.
| Factor | ▲ Supports a Higher Multiple | ▼ Pulls the Multiple Lower |
|---|---|---|
| REVENUE QUALITY | ||
| Recurring revenue share | Most revenue from scheduled service under ongoing agreements. | Revenue that depends on one-time projects or on work the owner sells personally. |
| Customer tenure | Customers who stay for years, with a documented reason for every loss. | Frequent losses to competitors, or losses with no explanation. |
| Customer concentration | No single customer or property management firm whose loss would materially change profits. | One customer or management firm holding a large share of revenue, especially if its contract is up for rebid. |
| Written agreements | Signed agreements that set scope, pricing, and notice terms, and allow transfer to a new owner. | Handshake arrangements, or contracts that require customer consent to transfer. |
| End markets | Industrial, distribution, data center, healthcare, and other facilities with specialized service requirements. | Heavy reliance on multi-tenant office, where vacancies and hybrid work have weighed on demand. |
| Pricing terms | Annual escalators or wage pass-through clauses, and a record of increases. | Fixed prices with no escalator. |
| Rebid exposure | Private-sector accounts that renew without a formal bid, and contracts with time left to run. | Public school, government, and airport accounts rebid on a fixed cycle. |
| Seasonality | Revenue spread fairly evenly across the year. | Revenue concentrated in a few months or tied to weather, such as pool openings or snow removal. |
| Growth | Steady growth from new customers and added services for existing ones. | Declining revenue from the existing customer base. |
| LABOR AND MARGINS | ||
| Margins | EBITDA margins at or above peers in the same type of business. | Margins well below peers, which leaves a buyer less room for error. |
| Labor cost control | Labor cost tracked by account and kept close to what the job was bid at. | Labor cost that varies widely by account, often a sign of jobs bid without measuring labor hours. |
| Overtime | Overtime that is planned and billed to the customer. | Unbilled overtime from call-outs and unfilled shifts. |
| Workforce stability | Steady recruiting, consistent training, and turnover the company tracks. | High turnover that leads to missed shifts, overtime, and customer complaints. |
| Workers’ comp experience mod (EMR) | Below 1.0, meaning lower premiums and a better safety record. | Above 1.0. Higher premiums, and questions about what is driving claims. |
| Labor sourcing | Services completed by the company’s own W-2 employees. | Heavy use of subcontractors or 1099 contractors. |
| OPERATIONS AND PEOPLE | ||
| Management depth | A management team that runs daily operations and holds customer relationships without the owner. | The owner holds the key customer relationships and brings in most new work, with little management layer beneath. |
| Quality and systems | Written service standards, inspections tracked in software, and integrated scheduling, timekeeping, payroll, and billing. | Manual or disconnected systems the buyer has to replace. No quality control infrastructure. |
| Equipment and vehicles | Trucks and equipment in good repair, with a replacement schedule. | Aging vehicles or equipment the buyer will need to replace soon after closing. |
| Licenses and certifications | Required licenses and certifications held by the company or by several employees. | Licenses or certifications held only by the owner. |
| Geographic density | Customers clustered in a few markets, which helps routing, supervision, and recruiting. | The same revenue spread thin across many markets. |
| FINANCIAL HYGIENE | ||
| Owner and related-party expenses | Personal and business finances kept separate, and any rent paid to the owner set at market rate. | Personal expenses run through the company. Below-market rent on an owner-held building becomes a negative adjustment to EBITDA. |
| Receivables | Current receivables and disciplined collections. | Aging receivables. Slow collections increase working capital investment for buyers and can leave money on the table for sellers. |
Frequently Asked Questions
How much is my janitorial or building services company worth?
Buyers usually price an established building services company on a multiple of EBITDA. A company with $12 million in revenue and $1.2 million in EBITDA, at the 5.4x benchmark for the $10M–$25M band, implies an enterprise value of about $6.5 million. Contract revenue quality, workforce compliance, customer concentration and the owner’s role move it within that band’s 4.5x–6.0x range. Revenue multiples are sometimes quoted as a shortcut, but they ignore differences in margin between companies, and most buyers do not rely on them.
Is the enterprise value what I take home?
No. Deals are usually priced cash-free and debt-free: the seller keeps the company’s cash and pays off its debt from the proceeds. The price also assumes a normal level of working capital and is adjusted at closing if the actual figure differs. Part of the price may be paid later through an earnout tied to future performance, a seller note, or equity the seller keeps in the buyer’s company (rollover). Taxes come last and depend heavily on how the deal is structured.
Why do larger building services companies sell for higher multiples?
Larger companies draw more buyers with more capital. A $100 million company attracts national consolidators and large private equity firms paying for density and a management team to build on. A $3 million company draws a smaller pool, often individuals using SBA-backed loans, where lender coverage requirements limit how much they can pay. Additionally, larger firms are considered less risky than the smaller companies as any individual risk is spread across a larger portfolio.
Should my business be valued on SDE or EBITDA?
Seller’s discretionary earnings (SDE) adds back the owner’s full pay and is common for owner-operated businesses that sell for under about $2 million. EBITDA is generally used once a company can run under hired management, and it is what private equity and strategic buyers use. Because the two figures differ, a multiple quoted for one should not be applied to the other.
Why do websites say cleaning businesses sell for about 2x?
Most published figures come from small-business listing data. BizBuySell’s 797 cleaning and janitorial sales from 2021 through 2025 had a median revenue of $433,327 and a median multiple of 2.07x SDE. Those are SDE multiples on very small companies, not EBITDA multiples on lower middle market firms.
Considering a Sale?
If you own a janitorial, commercial cleaning, or other building services company with $3 million to $150 million in annual revenue and are weighing a sale, recapitalization, or other transaction, contact Josh Harris at BMI for a confidential conversation about what your company is worth.
Josh is a Senior M&A Advisor, trained attorney, Army veteran, and former owner/operator in the labor-heavy business services sector. He built his company to more than $30 million in annual revenue and has recently been through multiple industry transactions, both as a seller and on a buy-side team.
At BMI, we know the major consolidators and private equity buyers of building services companies. When the right buyer is not among them, BMI’s database of 34,000+ strategic and financial buyers, including 25,000+ private equity groups and family offices, brings more to the table. BMI has spent more than 25 years buying, selling, and managing business acquisitions nationwide, and we are ready to put that experience to work for you.
Joshua C. Harris
Senior M&A Advisor | BMI Mergers & Acquisitions
jharris@bmimergers.com | (484) 302-2747 | www.bmimergers.com
Philadelphia · New York · Charlotte
Some Associates of BMI are registered representatives of, and securities transactions are conducted through, StillPoint Capital, LLC, Member FINRA and SIPC
This report is general information for business owners. It is not legal, tax, accounting, or investment advice, and reading it does not create an attorney-client or advisory relationship. Valuing a specific company requires a review of its financials and contracts.