Acquiring a cleaning company: business model and typical margins
Introduction
The professional cleaning sector in Switzerland represents a stable and mature market. Cleaning companies regularly feature among accessible acquisition opportunities, with entry prices often reasonable and a relatively simple business model to understand.
Yet, behind this apparent simplicity lies a precise economic reality. The margins of a cleaning services company depend on numerous factors: contract quality, operational efficiency, personnel management, and cost optimisation.
Before committing to an acquisition, you must master the sector's financial fundamentals. What are typical revenues? How is the wage bill structured? What margins can you reasonably expect? And above all, how do you identify warning signs during your financial analysis?
This guide provides you with the key figures and essential vigilance points to correctly evaluate a cleaning company. Concrete data to make an informed decision.
📌 Summary (TL;DR)
Cleaning companies operate on a recurring revenue model with long-term contracts. The wage bill represents 60 to 75% of turnover, equipment and products 5 to 10%, and general expenses 8 to 12%. Typical net margins range between 5 and 15%, with an average around 8 to 10% for a well-managed company.
During your analysis, check the quality and duration of contracts, the personnel situation (contracts, seniority, turnover rate), and the consistency between declared turnover, workforce and hours billed. These elements determine the company's real viability.
📚 Table of contents
The business model of a cleaning company
The cleaning sector is based on a predictable economic model: recurring contracts that generate regular revenues. The majority of cleaning companies work in B2B (offices, shops, industries) with monthly or annual contracts.
Billing is generally done per square metre or per hour, with fixed or variable teams depending on needs. This model offers appreciable financial visibility for an acquirer: little seasonality, stable cash flow, and a loyal customer base.
Typical revenue structure
Recurring monthly contracts represent 80-90% of typical turnover. The remainder comes from one-off services (end-of-construction cleaning, special interventions) and additional services (window cleaning, floor treatment).
In Switzerland, rates vary according to the type of service: offices 2-4 CHF/m², shops 3-5 CHF/m². To see concrete examples of cleaning companies for acquisition, consult the listings available on the platform.
Operational costs to anticipate
The cost structure of a cleaning company directly determines its profitability. Understanding these items is essential to correctly evaluate an acquisition opportunity.
Three main categories dominate: the wage bill (by far the most important), equipment and products, then general expenses. The balance between these items reveals the company's operational efficiency.
Wage bill: the main item
Salaries represent 60-75% of turnover in this sector, including social charges. In Switzerland, expect an average hourly wage of 20-25 CHF, to which 20-25% social charges are added.
Turnover, absences and staff training are major issues. During an acquisition, carefully analyse the team structure, employee seniority and their stability. This is your main operational asset.
Equipment and products
Cleaning products and small equipment represent 3-7% of turnover. Machines (scrubber-dryers, professional vacuum cleaners) constitute an initial investment then a depreciation item.
Check whether the equipment belongs to the company or is provided by clients. Eco-responsible trends (biodegradable products, certifications) can impact costs, but also justify higher rates with certain clients.
General and administrative expenses
This category includes professional liability insurance (mandatory), vehicles and travel, premises (often limited), accounting and marketing. Typically 8-12% of turnover.
These costs are relatively compressible in a small structure. A cleaning company can operate with minimal office space, or even from home for the administrative part. Optimising these items directly improves the margin.
Typical margins and profitability
In Switzerland, the margins observed in the cleaning sector are: gross margin 25-40%, EBITDA 8-15%, net margin 3-8%. These ranges vary according to size (micro-enterprise vs SME), positioning (low-cost vs premium) and operational efficiency.
A net margin of 5-7% is considered healthy in this labour-intensive sector. Higher margins generally indicate excellent management or premium positioning.
Vigilance points during financial analysis
Before committing to an acquisition, certain indicators deserve particular attention. Rigorous analysis avoids unpleasant surprises and secures your investment.
Focus on three critical dimensions: contract quality, personnel situation, and overall consistency of the figures presented.
Contract quality and duration
Check the remaining duration of main contracts, termination clauses and client concentration. A client representing more than 30% of turnover constitutes a significant risk.
Analyse the historical retention rate and identify contracts to be renewed in the short term. To structure your opportunity analysis, use a systematic evaluation grid that covers these contractual aspects.
Personnel situation
Examine employee seniority, turnover rate and the nature of contracts (permanent vs temporary). The risk of departure during the transfer is real in this relational sector.
Compare the salaries practised with the local market and verify the absence of social charge arrears. Personnel constitute the main asset of a cleaning company: without a stable team, contracts lose their value.
Consistency of figures
Check the consistency between declared turnover, number of employees and hours billed. The Swiss benchmark: 60,000-80,000 CHF turnover per full-time equivalent (FTE).
Analyse the evolution of margins over 3 years and identify exceptional or underestimated charges. For a complete valuation of the company, cross-reference this data with sector multiples and forecast cash flows.
Post-acquisition development potential
After an acquisition, several growth levers exist: digitalisation of management (scheduling, automated billing), service diversification (specialised cleaning, disinfection), geographical expansion, or operational optimisation to improve margins.
These opportunities require time and targeted investments. The Leez partner network (fiduciaries, M&A experts) can support you on these strategic aspects without obligation on your part.
Acquiring a cleaning company offers the advantage of a simple and predictable business model, based on recurring contracts. Net margins generally range between 5% and 12%, with the wage bill as the dominant item (65-75% of turnover). Profitability depends directly on the quality of the client portfolio, personnel stability and operational efficiency.
Financial analysis must pay particular attention to the duration and quality of contracts in place, the actual personnel situation (turnover rate, seniority) and the consistency of declared figures. Post-acquisition development opportunities exist, notably through service diversification or process optimisation.
Are you considering acquiring a cleaning company? Consult the companies available on Leez to identify concrete opportunities. Our platform gives you access to detailed financial information and allows you to make direct contact with qualified sellers.
