Janitorial Recurring Revenue Valuation
Everything you need to know about recurring revenue for janitorial businesses. Data-driven insights from HedgeStone Business Advisors, based on real janitorial M&A transactions.
SDE Multiple Range
2.5x–4.5x
EBITDA Multiple Range
3.5x–7x
Average SDE Multiple
3.2x
Avg. Time to Close
90–150 days
Janitorial Business Overview
Janitorial businesses currently sell for 2.5x–4.5x SDE and 3.5x–7x EBITDA in today's market. The recurring revenue aspects of janitorial valuations are driven by recurring revenue percentage, owner dependency, market position, and buyer type.
Key Considerations
For janitorial business owners, understanding recurring revenue is critical to maximizing your sale price. Most sellers leave money on the table because they don't fully understand how buyers evaluate this aspect of their business. The difference between a 3.0x and a 4.5x deal is often in the details that savvy sellers address before going to market.
Working with a Business Broker
Janitorial business sales require a broker who understands your vertical — the specific buyer pool, current market conditions, and how to structure a process that creates competition. HedgeStone Business Advisors has represented janitorial business owners across multiple states, with deep relationships in the PE and strategic buyer community.
Janitorial Business Valuation Multiples (2025)
| Method | Low | Mid (Typical) | High (Premium) |
|---|---|---|---|
| SDE Multiple | 2.5x | 3.2x | 4.5x |
| EBITDA Multiple | 3.5x | 4.8x | 7x |
| Revenue Multiple | 0.35x | 0.6x | 0.9x |
Source: BizBuySell, IBBA, Pepperdine Private Capital Markets Report, DealStats (2024–2025)
Janitorial Business Valuation FAQ
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