Closed transaction · January 2018
Total Cleaning Services
MDR & Associates took Total Cleaning Services, a cleaning services company, through to closing in January 2018.
The transaction
- ClosedJanuary 2018
- SectorBusiness & consumer services
- Represented byMDR & Associates
Afterwards
In the owner's own words
I just wanted to say thanks to you and your team. There are times in my life when God has introduced me to just the right people and this was one of those times. As I look back on the process I realize how little I knew about the sale of a business. I was so blessed to be involved with your team of experts. I received a phone solicitation early March. We had our first meeting mid March. I had an offer that exceeded my expectations end of April. Closed the sale mid May. During the process your team put me together with the right buyer, led me through the process, put me together with an expert attorney. Victor and his partners advised me to structure the payment in a manner that literally saved me $40k in tax payments. As I write this from my recliner, I have the funds deposited in the bank, the buyers are operating their new company with most all transitions completed, and all my former employees are still employed and appear to be happy with the change. Win, Win, Win. That is the way I wanted to exit.
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What buyers look at in a service business
Recurring and contracted revenue
The strongest single driver. Revenue under contract, on a schedule, or under a maintenance agreement is worth a multiple of the same revenue sold ad hoc.
Owner dependence
If customers buy because of you, the buyer is not buying a business. Reducing this is the highest-return work available before a sale.
Customer retention and length
Churn and average tenure tell a buyer what they are really acquiring. Have the numbers ready before they ask.
The full list, and who the buyers are: Selling a service business in Texas.
Your company
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