This $596k Commercial Cleaning Pays $90,046/Year After Debt
The numbers are mixed. Coverage falls short of the 2.0x Bulletproof threshold.
This is a commercial cleaning business listed at $596,372, generating $785,583 in annual revenue and $181,134 in seller's discretionary earnings. At a 3.29x cash flow multiple, the asking price is above the 3.00x Bulletproof threshold and above the 2.60x benchmark for commercial cleaning businesses. The profit margin is 23%, above the 19% benchmark for commercial cleaning businesses, about 1.2x the category figure.
We ran this deal through the DealScore Pro Bulletproof Calculator to see how it holds up across all five scoring criteria. Here is the full breakdown.
Deal Snapshot
The deal snapshot tells a mixed story. Revenue of $785,583 produces a 23% margin, above the 19% benchmark for commercial cleaning businesses, about 1.2x the category figure. The 3.29x multiple is above the 3.00x Bulletproof threshold and above the 2.60x benchmark for commercial cleaning businesses.
Financing Overview
Using the standard 80/10/10 SBA deal structure (80% SBA 7(a) loan, 10% seller financing, 10% buyer down payment), here is what this acquisition looks like when financed.
Why the Numbers Matter
The headline number most buyers fixate on is the asking price. But the asking price alone tells you almost nothing about whether a deal is worth doing. What matters is what happens after you finance it.
The post-debt cash flow of $90,046 per year is what is left after every loan payment on the figures entered. On a $59,637 cash investment, that is a modest return, and it is below the $100K minimum threshold that the Bulletproof standard requires. This figure is calculated before any cost of replacing the owner’s own role in the business, so the real number available to a buyer who has to hire that role is lower still.
The DSCR of 1.99x means the business generates $1.99 for every $1 of annual debt payment. SBA lenders require a minimum of 1.25x. The Bulletproof standard requires 2.0x. This deal clears the bank minimum but falls short of the Bulletproof target, leaving you with a thinner safety margin.
The stress test is where many deals that look good on paper fall apart. We model a 20% drop in revenue and check whether the business can still cover all debt obligations. This deal passes. Even at $628,466 in revenue (down from $785,583), the cash flow still services the debt. That is the kind of resilience you want in a financed acquisition.
Industry Context
📈 How This Deal Compares to the Commercial Cleaning Industry
Commercial Cleaning runs close to the all-industry average on SBA defaults, at 5.1% against 5.1%. The industry itself is neither a tailwind nor a drag here, so the deal gets judged almost entirely on its own numbers.
The deal has some solid fundamentals but the mixed signals mean lenders will scrutinize it more closely.
Strengths and Risks
✓ What Works
- Coverage still holds at 1.59 after a modeled 20% revenue drop.
⚠ Watch Out For
- Coverage of 1.99 is above the bank floor but below where I want it. One slow quarter and the loan payment starts competing with payroll.
- At 3.29x the price is above the 2.99x top of the normal band. That is roughly $55k of extra purchase price financed over ten years, so it costs real money every month, not just at closing.
- Every figure here comes from the listing and none of it is verified. A listing is marketing, and it is written by someone paid on the sale.
Who This Deal Is For
Best fit for:
Experienced operators who can underwrite the specific risk flagged above and who have the capital to absorb a soft year without the loan payment becoming the problem.
This deal is not a fit for a first acquisition at the current asking price.
This one did not clear. Here is what does.
Most listings fail on the same few numbers. Starter members get the deals that pass, every week, with the source listing attached.
Frequently Asked Questions
Is $596,372 a fair price for a commercial cleaning business?
At 3.29x seller's discretionary earnings, this asking price is above the 3.00x Bulletproof threshold and above the 2.60x benchmark for commercial cleaning businesses. The Bulletproof threshold and the category benchmark are two different yardsticks, and this deal sits outside the stricter of the two.
What is a good profit margin for a commercial cleaning business?
The benchmark profit margin for commercial cleaning businesses is approximately 19%. This listing operates at a 23% margin, which is above the 19% benchmark for commercial cleaning businesses, about 1.2x the category figure. That is a comparison against category medians, not a verdict on this listing.
Can I buy a commercial cleaning business with an SBA loan?
Yes. Commercial Cleaning businesses are commonly financed through SBA 7(a) loans using an 80/10/10 structure: 80% SBA loan, 10% seller financing, and 10% buyer down payment. For this $596,372 deal the down payment is $59,637, but cash required at closing is $77,528 once closing costs and a working capital reserve of $102,126 are counted. SBA lenders require a minimum DSCR of 1.25x, but conservative buyers target 2.0x or higher. This deal's 1.99x DSCR clears the bank minimum but falls short of the conservative target.
How much do commercial cleaning business owners actually make?
Owner earnings vary widely based on revenue, pricing, and operational involvement. This commercial cleaning business generates $181,134 in seller's discretionary earnings (SDE) before debt service. After SBA financing under the 80/10/10 structure, the buyer would take home approximately $90,046 per year. That post-debt figure is the number that actually matters for a financed acquisition, because it reflects what ends up in your pocket after every loan payment is made.
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