RoseCo Home Cleaning

RoseCo Home Cleaning

Price: $315,000

Normalized Cash Flow: $103,000

What they Do – the short version

RoseCHousekeepero Home Cleaning provides high quality weekly or bi-weekly home cleaning services in South Calgary, Okotoks, and surrounding acreages.

  • They are one of the premiere cleaning companies servicing this area.
  • Active with both Residential and Commercial clients with continuing tremendous growth potential
  • Once a new client contacts RoseCo they are placed on a regular weekly or bi weekly schedule
  • Clients pay each time their homes are cleaned so cash flow is excellent
  • Clients are attracted through the internet and referrals
  • Owner manages the operation and administration and will ensure a smooth transition and mentor the new owner if required.

Summary

RoseCo Home Cleaning has been busily cleaning Calgary homes and commercial establishments since 2009. There are three years of complete financials and a full equipment list available to qualified buyers.

Operations

This is a home office business with a customer base centred on Okotoks including some of the neighbouring towns and sub-divisions.

The firm consists of the owner and five employees working in 2 teams. Each team has a ‘team leader’. The seller estimates manpower runs just over 8,000 hours a year.

The workload is fairly balanced with no real slow period although August is slower than the other months but off-set with one-time cleaning jobs as during the real estate home-sale completions that are often scheduled for when the children are out of school.

The employees provide their own transportation to jobs usually carpooling together. The seller provides each team with all their cleaning supplies including a team vacuum cleaner. All of their cleaning supplies are eco-friendly.

Business can increase without the need for new vacuums. They will all be sold in good working condition.

RoseCo uses an off-site accounting service for their administration utilising Quickbooks.

The firm works regular hours starting at 8.30 and finishing at 4:30 Monday through Friday.

Customer Base

Most of their new business arrives via the internet and referrals from existing customers, They maintain a first class web site that customers find very appealing.

Most of RoseCo’s business is repeat.

Further Information

Three years of financial statements and a complete equipment list is available for qualified buyers.

Management Discussion

Q Why you are selling?

A.  To retire

Q In your words, what does the firm do?

A.   Provide a high quality reliable residential and commercial cleaning service to clients in Okotoks, Calgary and surrounding areas.

Q  What functions does the owner perform? What talents will the new owner have to replace when you leave?

A. My job is to . . .

  • Organize the schedule
  • Answer the phone
  • Talk with new clients and book in their cleaning
  • Pay and receive and pay invoices
  • Bank payments received
  • Administration
  • Marketing

 

Q How long will you stay after the sale to help in the transition?

A This can be negotiated depending on what works best for the buyer.

Q Can you estimate what it would cost for a competitor to start up?

A . Most cleaning companies are run by one key person who also cleans. I do not clean, I manage the business. I can regularly obtain new clients through my website presence. New companies will not be able to get such a high profile on google as I have without significant monthly outlays and will not be able to expand so quickly if at all.

Q Have the accounts receivable been purged of bad debts? (This will is really a lawyer question).

A. There are no bad debts.

Q Will you agree to a non-competition clause?

A. yes

Interested? Next steps:

1. Fax / scan the non-disclosure document 
2. Phone discussion
3. Release of financial information
4. Meeting with seller and tour of premises
5. Discussions that may lead to a deal

David Page | An Alberta Business Broker

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