Selling your facility maintenance business.
Facility maintenance providers are valued on contracted, recurring work and the skill level of their labour. Technical, “hard” services command more than “soft” services such as janitorial.
Typical valuation multiples.
Where a business falls depends on recurring revenue, margins and how much it relies on the owner.
What moves the multiple.
More than about 70% recurring or contracted revenue.
A high share of technicians and skilled trades rather than general labour.
EBITDA margins above about 20% and revenue growth above about 10%.
Top customer below about 10% of revenue; multi-state coverage.
Janitorial and other soft services are valued below technical services.
Commercial office customers are now seen as riskier due to hybrid work.
More than about 30% of revenue from one customer.
What facility maintenance owners should know before a sale.
HVAC, electrical, plumbing, and fire and life safety maintenance earn a premium over janitorial and landscaping.
Healthcare, industrial and data center customers are viewed favourably.
Union status and the balance of self-performed versus subcontracted work affect value.
Buyers review contract length, renewal history and pricing escalators.
Questions facility maintenance owners ask
What is my facility maintenance business worth?
Most owner-led facility maintenance companies we see are valued at roughly 3x–4x EBITDA below $1 million of EBITDA, 4x–7x between $1 million and $5 million, and 6x–9x above $5 million. Contracted, recurring revenue, a high share of skilled technical labour and a broad customer base support a higher value. Janitorial-heavy service mixes and commercial office exposure are discounted.
Who buys facility maintenance companies?
Facilities services platforms, private equity firms, strategic acquirers adding technical services, and independent sponsors.
How long does it take to sell a facility maintenance business?
A full sale process typically takes six to nine months from engagement to closing, depending on how prepared the business is, the level of buyer interest and how quickly diligence moves. Buyers review contract length, renewal history and pricing escalators, so having contract files organised helps.