Husband-and-wife owners of a five-year-old southern Utah cleaning business who used acquisition to add a new niche, a new location, and recurring revenue.
Background, challenges, and motivation
We’ve owned a cleaning business in southern Utah for the last five years, serving vacation rentals and residential homes. Abby met Heather from The Exit School through a BNI chapter, and she introduced us to the idea that even as existing business owners, we could acquire more businesses to grow faster than we could on our own. It wasn’t only about acquisitions. We also wanted to learn how to make our current business better and sellable, so if we ever decided to sell, we’d know how to prepare for it.
Background on the Business
What business did you acquire?
A small commercial cleaning business in southern Utah that handles move-out cleans and common area cleaning for three large apartment complexes.
When did the acquisition take place?
At the time of this interview, Abby and Jake were one month into ownership.
Condition of the business at purchase
About $180K in gross revenue with strong margins and stable financials. The work was guaranteed every month, which is rare in this industry. The weak points were that the seller was doing most of the work herself, her two employees had high turnover, and client relationships were closely tied to her personally. No marketing had ever been done.
What attracted you to this business?
The guaranteed, recurring work, which made it possible to cover the debt payments. They also liked learning an entirely new niche, and they’re always looking to expand their cleaning business, so the additional location and service type were a natural fit. Abby also had history with the seller: five years earlier, Abby took over the seller’s client book in the niche they were already in, so they knew they could keep clients happy through a transition.
The Transformation
Business plan for the next year
Systematize the business so everything runs like clockwork and nothing gets missed. Update equipment, streamline billing and how work orders come in, and build backup coverage so the business doesn’t depend on any one person. Long term, their goal is to grow to the point where they don’t have to manage day to day — a four-hour office work week if possible, and if not within 5 to 10 years, they’ll sell. Their bigger goal is to be the go-to cleaning company in St. George and southern Utah.
Top priorities in the first 90 days
Learn everything the seller knew, keep things stable while she transitioned out, and secure the client relationships. They intentionally didn’t change much right away.
First operational changes
Replacing the owner’s labor from day one with their own employees, and hiring a replacement after one of the inherited employees quit on day two.
Staffing or team structure
They kept the roles and workflows the same but replaced the entire staff of the acquired business. Three employees from their existing team now cover the work previously done by two, and they’ve been building backup coverage for call-outs and vacations.
Marketing or customer acquisition
The business had done no marketing. Since all three complexes belong to one larger company that manages many more properties, their first strategy is to approach them directly about additional locations. After that, they plan to add online marketing and offer recurring cleaning to residents, not just move-outs.
Systems, tools, processes, and financial management
Work orders currently come in on paper. They’re building systematic processes for add-on services, streamlining billing, updating equipment, and documenting the work so anyone can step in.
Results
Revenue at acquisition
About $180K in gross revenue with strong margins.
Revenue now
Revenue is expected to hold around $180K to $200K through 2026 following a price increase, with plans to grow beyond that by the end of year two.
Financing
The seller was initially opposed to seller financing and wanted 100% paid out. Because smaller deals are harder to fund, and because she wanted to retire and pass the business to someone she trusted, she became open to it over time. The seller financed 76% of the deal. The remaining 24% came from private investors, with Jon from The Exit School helping connect Abby and Jake with people interested in smaller deals.
Team morale or retention
The first week was rough because the new type of cleaning was harder than what the team was used to. Once they understood expectations and picked up tips from the seller, morale turned around completely. The guaranteed work also gives the team more stable hours than they could offer before.
Customer satisfaction
Clients were worried about losing a cleaner they loved, so Abby and Jake have responded quickly to every concern and worked to show they’re not going to do a worse job. The seller personally introduced them and told clients she trusted them, and those relationships are being secured.
The Role of Exit School
How Exit School supported you
They knew nothing about acquisition going in. Taking the course and joining the weekly calls meant that when the seller reached out, they could walk her through how it works. They didn’t need a broker or other outside help beyond their lawyers. Jon helped them find financing for the remaining portion of the deal, and having Heather as a contact to ask questions was really important.
Most valuable part
For Abby, knowing they could call someone for help at any point. For Jake, the pre-built tools and resources. Without them, it would have been an Excel sheet and trying to piece it together.
Specific tools or systems
The due diligence tools, which helped them go through every transaction from the last three years, the pro forma, the pitch deck guidance, and one-on-one strategy meetings that gave them a lot of great ideas.
Personal Reflections
Most rewarding part
Abby: as a business owner, you get sucked into your own world. This acquisition opened her eyes to the fact that she doesn’t have to do things the same way, and there are more opportunities to create value for clients. Jake: the new relationships, and being able to help the seller retire and move closer to family.
Challenges and how you overcame them
Exhaustion from handling everything at once, and a tough first two weeks when Abby had to work in the field after an employee left. Finding funding for a small deal was also hard. They overcame it by leaning on the seller, each other, and their existing team, and with Exit School’s help connecting them to investors.
Advice for new operators
Abby: “Expect it to be harder than you think. And when it’s easier than that, be grateful. It won’t be new forever, and it’ll be worth it.” Jake: “Prepare as much as you can, roll with the punches, and just keep going.”
