THE SHORT ANSWER
Reconcile completed jobs to annual results, including necessary labor, travel, rework and owner replacement. Define equipment, vehicles, stock and liabilities within the proposed price. Use relevant comparisons on the same financial basis. A job remainder, truck-mount price or generic cleaning multiple does not establish certified company value.
Use an explicit job-cost bridge
Review actual service mix, pricing, crew time, supplies, travel, outside work, rework and credits. Reconcile costs and periods with the accountant. Avoid deducting the same travel, crew or disposal cost twice.
| Invented specified-job bridge | Amount |
|---|---|
| Specified revenue | $360 |
| Specified crew cost | −$150 |
| Specified supply cost | −$35 |
| Specified travel cost, not already included | −$30 |
| Specified disposal cost, not already included | −$15 |
| Remainder after only these costs | $130 |
The specified costs total $230. Annual company results must include all relevant activity and shared expenses rather than multiplying selected successful jobs by a planned full schedule.
Support annual earnings and replacement duties
SEC adjusted-measure guidance is an issuer-reporting presentation reference.
(SEC: non-GAAP financial measure interpretations)Have the accountant establish the starting measure, period and each adjustment. Trace expenses actually deducted and their ongoing purpose. Draws, principal payments, capital purchases and every vehicle or renovation cost are not automatic add-backs. Include necessary estimating, scheduling, cleaning, equipment care and customer-resolution replacement consistently.
Use the earnings-basis guide to distinguish SDE, managed earnings and cash after financing, tax and investment. Show achieved pricing/routing changes separately from forecasts, upgrades and future hires.
Compare the actual operation and price scope
BizBuySell’s historical cleaning category mixes residential, commercial, specialized and franchise businesses.
(BizBuySell: reported cleaning and janitorial sales, 2021–2025)The historical sold table is category context, not a carpet-only comparable set, EBITDA benchmark or current company appraisal. Compare actual activity, ownership model, financial definitions, owner duties, period and included assets using relevant evidence.
Review achieved repeat purchases, commercial terms, household access and actual provider conditions using the consent register. No fixed client-list, equipment-type or recurring-revenue premium is established. A generic earnings threshold does not select the correct financial metric.
Define equipment and delivery adjustments
SBA sale guidance addresses assets, liabilities and the agreement.
(SBA: closing or selling a business)Verify equipment/vehicle title, liens, leases, condition, maintenance and necessary investment. Define stock, receivables, payables, deposits and unfinished jobs with advisors using the delivery guide. Identify customer-owned and personal items separately.
Determine what the proposed business value already includes before adding every truck mount and supply item at replacement cost. Investment, annual earnings and agreed working-capital delivery have different purposes. Use the preparation guide for company evidence and professional comparison. The calculator computes a scenario; it does not certify an appraisal or verify a market price.
Owner questions
Is the invented $130 remainder business SDE?
It deducts only specified job costs; a full annual financial reconciliation is still required.
Do national cleaning multiples establish carpet-only value?
The stated category is mixed; relevant company and transaction evidence are required.
Should equipment replacement cost be added to the price?
Check ownership, condition and what the business price already includes before a separate addition.
Sources and review scope
Source review completed . The sources below support the identified concepts or rules; they do not validate hypothetical amounts or a valuation of your business.
- SEC: non-GAAP financial measure interpretations
Staff interpretations last updated December 2022: recurring operating costs and distinguishing EBITDA from adjusted measures. SEC reporting context, not a universal private-sale rule or automatic acceptance of add-backs.
- BizBuySell: reported cleaning and janitorial sales, 2021–2025
Historical national marketplace-reported sold owner-discretionary earnings multiples across residential, commercial, specialized cleaning and franchise units. Not a commercial-only or independent residential-only comparable set, EBITDA, current 2026 pricing or a company appraisal. Asking observations differ; only primary sold earnings table reproduced.
- SBA: closing or selling a business
Valuation approaches, sale agreements, assets and ownership transfer.
Confirm tax, legal, accounting and lending applications with the relevant professionals. Historical market observations describe the stated period and reported sample.
This is educational material. Industry figures and program rules can change; check the original sources and your advisors before applying them to a transaction. Calculator scenarios are not appraisals, lending decisions, or offers.
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