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Business Valuations Perth, Western Australia

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Cleaning Services Business Valuations

The cleaning sector was last looked at in Business Values Newsletter 105 of October 2008. Whilst the 2019/20 year has been a difficult one due to the COVID-19 pandemic, there is strong growth predicted over the next five years.

Cleaning Business Valuations

Current Cleaning Services Business Conditions

This industry includes businesses providing general domestic and commercial cleaning services. The more specialised areas such as carpet cleaning and dry cleaning are not included in this article.

The main services provided by the cleaning industry by percentage of revenue are as follows:

  • Interior cleaning of commercial buildings / around 40%
  • Bathrooms/ablutions / around 15%
  • External building/windows 13%
  • Domestic cleaning 7%
  • Industrial cleaning 10%
  • Other 7% to 8%

This is an industry where there are no major companies with a large share of the market – it is mainly conducted by small businesses.
Annual revenue is around $11.7 billion. Revenue was growing up until 2018/19 though fell in 2019/20 due to the COVID-19 social distancing and business closure issues. A fall in business confidence also affected demand for cleaning services.

To read more about the current business valuations in regards to cleaning businesses, please login or become a member of the Business Valuations Newsletter.

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