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Industrial & Corporate Custodial Business with 40+ Staff

Hawaii Based Business with Low Multiple of 2.65 and 15% Seller Financing Offered!

CASH FLOW
$761,237

Specifications

  • Revenue
    $2,934,087

  • Cash Flow
    $761,237

  • Price
    $1,800,000

  • Location
    Hawaii

  • Profit Margin
    26%

  • Employees
    43 employees, including janitorial techs and general managers for each location

  • Service Area
    Kauai, Oahu, Maui, Molokai

  • Equipment
    $424,287

  • Industry
    Maintenance/Service/Trades

This Hawaii based custodial business has been valuated at a low 2.65 multiple making this an excellent deal for buyers and the seller has put forward a show of good faith by offering 15% seller financing to sweeten the deal. Their experienced general managers and technicians are self-sufficient, helping to generate over $2.9 million in sales in 2021, and leaving the owner with minimal responsibilities. Their services include, but aren’t limited to, office cleaning and deep cleaning commercially. Since 2005 this commercial janitorial establishment has been able to establish an excellent reputation by offering their services paired with a focus on their customer’s needs. With four locations, one on each of Hawaii’s most populated islands (Kauai, Oahu, Maui, Molokai), this business benefits from excellent name recognition, resulting in repeat clients and little need for advertising. Being 95% recurring, these 27+ repeat commercial clients include some of the largest entities in Hawaii, such as industrial agricultural companies. Their Green Seal certification ensures the highest quality standards in cleaning practices, instilling a high level of trust between this cleaning business and their repeat clientele. They also have the exclusive license in Hawaii to clean one of America’s most popular drapery brands.

 

The increase of cleanliness and hygienic standards has helped to increase revenue which has been maintained through 2021, as companies, and employees, have a greater appreciation and demand for a clean and sanitary workplace. Between their Green Seal certification and their drapery cleaning license, they can provide exclusive services that cannot be found anywhere else in Hawaii. A new owner will have the flexibility to continue to run the business as is or expand as desired into the residential sector or to other Hawaiian Islands.

 

Priced at $1,800,000, this business will produce $365,987 after debt payments in the first year! Any potential buyer can feel comfortable knowing that the current owner will offer a one-year training/transition period to assist in learning the ropes of contract renewals and management on multiple islands.

Purchase Price:

$1,800,000

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Years
%

Bank Loan Needed: $

Years
%
$
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Funding Details

Business:

Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $

Conclusions

Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
3 Yr. Avg (20,21,22) Cash Flow
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
3 Yr. Avg (20,21,22) Cash Flow
$
Annual Debt Service: -$
NOI:

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
NOI:
ROI: %

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210 N 78th St. 2nd Floor
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The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.