How a Commercial Janitorial Business Sold at 11 Times EBITDA

In this episode, Lucas and Luna break down the sale of a regional commercial janitorial company that commanded an 11x EBITDA multiple, despite intense competition and low barriers to entry. They explore how the owner engineered the valuation through a mix of long-term contracts, high employee retention, and a niche focus on healthcare facilities. The discussion covers why buyers pay up for recurring revenue in service businesses, the role of key person risk, and how the deal structure included an earn-out tied to client retention. Lucas and Luna also compare this to lower-multiple sales in the same sector, offering practical takeaways for owners thinking about selling. They touch on the importance of grooming a second-in-command, diversifying the client base, and documenting standard operating procedures. The episode closes with a look at what this means for the broader market for small business acquisitions in August 2026. #BusinessSale #EBITDAMultiple #CommercialJanitorial #RecurringRevenue #BusinessBroker #SellingABusiness #HealthcareFacilities #KeyPersonRisk #EarnOut #ClientRetention #ExitPlanning #DueDiligence #BusinessValuation #SmallBusiness #MergersAndAcquisitions #FexingoBusiness #BusinessPodcast #DealStructure Keep every episode free: buymeacoffee.com/fexingo