For many contract cleaning business owners, selling the company is a “someday” plan. But according to Mark Herbick, president and founder of Pursant and a veteran of the cleaning world, waiting until you're ready to exit may be too late.
At BSCAI’s Contracting Success 2026 (CS26), taking place November 17-19 in Las Vegas, Herbick will lead a session focused on M&A deal breakers, helping contractors understand what attracts buyers, what drives value, and what can derail a transaction at the last minute.
The Good News: Demand Remains Strong
Unlike many industries that experience dramatic swings in merger and acquisition (M&A) activity, contract cleaning tends to be remarkably stable. Herbick attributes that to the industry’s consistent demand and lack of major disruption.
“There are more buyers in this industry than there are sellers,” he says, particularly for larger businesses with significant revenue and scale.
That doesn't mean every company commands the same valuation, however.
A Common Misconception: Hard Work Equals Higher Value
You’ve built this business from the ground up. Put in the hours, stuck out late nights, and worked tirelessly to build a client roster you can be proud of. Certainly that counts for something when putting your business up for sale, right?
Not necessarily, Herbick says. One of the biggest surprises for owners is discovering that years of effort do not automatically translate into a premium valuation.
Many owners compare themselves to much larger companies and assume similar valuation multiples should apply. But buyers view smaller companies differently because they often carry greater risk, less infrastructure, and more dependence on the owner.
“There's an expectation that all of the energy you’ve put into the business equals high valuation,” Herbick says. “They're totally unrelated. It's just like whether you built your house by hand or you paid a contractor. It's worth the same.”
As Herbick explains, business value is determined by what a buyer is purchasing and the future opportunity they see, not the number of years or late nights an owner invested.
3 Ways to Build a More Attractive Business
According to Herbick, owners should focus on three areas long before they plan to sell:
- Make yourself obsolete. A business that depends entirely on its owner is difficult to transfer. Buyers want confidence that operations, customer relationships, and leadership can continue without the founder involved every day.
- Diversify your customer base. Heavy customer concentration creates risk. A company with many customers contributing small portions of revenue is generally more attractive than one relying on a handful of major accounts.
- Show a growth trajectory. Buyers are forward-thinking and are looking for future potential. Flat or declining growth can raise concerns about long-term value and sustainability.
Culture Can Make or Break a Deal
Financial performance is only part of the equation. Herbick shares that culture fit often becomes a deciding factor during negotiations, too.
Employees and customers may not view an acquisition the same way buyers and sellers do. In fact, he draws a distinction between earned employees and customers versus acquired ones.
When ownership changes, questions naturally rise. Employees wonder how they'll be treated. Customers question whether service levels will remain the same. Buyers that fail to manage those concerns can face significant integration challenges.
“An acquired customer and an acquired employee is not the same as an earned customer and a hired employee,” Herbick says.
Deal Breakers Aren't Always Obvious
While cultural issues can derail a transaction, sometimes the deal breaker is much more straightforward.
Recently, Herbick saw a transaction collapse during due diligence when a bookkeeping error significantly overstated company earnings. The issue wasn’t intentional, but it was enough to undermine buyer confidence and stop the process.
That’s one of the themes he’ll explore at CS26: the hidden issues that can surface late in negotiations and how owners can prepare before they become problems.
A Final Lesson: Plan for Life After the Sale
Herbick’s last piece of advice has little to do with valuations or buyers.
Many owners spend decades building businesses that demand their attention around the clock. When that business is gone, they can struggle with a loss of purpose, regardless of how much money they receive from the transaction.
The business and the owner often become deeply intertwined. Preparing for an exit, he argues, means planning for the next chapter of life just as carefully as planning for the transaction itself.
“You’ve got to figure out what your next chapter is going to be as a person so you don't wake up looking in the mirror and say, ‘Who am I now? What’s my purpose?’” Herbick says.
It’s a fitting reminder that an exit strategy is about more than the transaction itself. Building a business that’s ready to thrive without you makes it more attractive to buyers and gives you the freedom to decide what’s next when the time comes.
Want to learn more? Join Mark Herbick at Contracting Success 2026 (November 17-19 in Las Vegas) as he shares real-world examples of deal killers, valuation misconceptions, and the practical steps owners can take today to build a business that's ready for tomorrow.