SPARK Business Brokers, was approached by a retiring business owner in the residential cleaning franchise industry. The client had successfully operated a residential cleaning franchise for several years and decided it was time to retire. With a price expectation of $1.25M for the business and owned real estate, the client engaged SPARK Business Brokers to find a first-time business owner who could take over the franchise and continue its success. The client’s objective was to facilitate a smooth transition while achieving a fair sale price within a six-month timeframe.

The client’s primary objective was to find a first-time business owner who had the enthusiasm, dedication, and resources to maintain the high standard of service and customer satisfaction that the residential cleaning franchise was known for. The client aimed to secure a fair sale price of $1M and desired a timely closure within a six-month timeframe to ensure a seamless transition into retirement.

SPARK Business Brokers devised a strategic approach to meet the client’s objectives, implementing the following steps:

• Franchise Evaluation: SPARK Business Brokers conducted a thorough evaluation of the residential cleaning franchise, assessing its financial performance, brand reputation, customer base, and growth potential. This evaluation provided valuable insights into the franchise’s value and served as the foundation for attracting potential buyers.
• Real Estate Valuation: Since the client owned their real estate, SPARK Business Brokers, through their strategic partnership with a leading sale leaseback advisory firm, took the reins on selling the real estate separately to a fund who specialize in acquiring sale leaseback investment properties. This way, the client could generate a higher return for the property in isolation than if bundled together with the sale of the business.
• First-Time Business Owner Identification: Leveraging their network and expertise, SPARK Business Brokers identified individuals who were interested in becoming first-time business owners. These potential buyers were carefully evaluated based on their motivation, transferable skills, financial capabilities, and commitment to maintaining the franchise’s high standards.
• Marketing and Promotion: SPARK Business Brokers developed targeted marketing materials highlighting the benefits of owning a residential cleaning franchise, including the established brand, proven business model, and customer base. These materials were tailored to appeal to first-time business owners, showcasing the potential for growth and the opportunity to enter a stable and profitable industry.
• Negotiation and Deal Structuring: SPARK Business Brokers facilitated negotiations between the client and prospective buyers, working to achieve a sale price of $480,000 for the business. SPARK was also able to simultaneously sell the real estate for $770,000 for a combine value of $1,218,000 – generating an additional $218,000 in value to the client.
• Due Diligence and Closing: SPARK Business Brokers guided the client and the selected buyer through a thorough due diligence process, ensuring all necessary financial, legal, and operational information was exchanged and evaluated. They provided support and expertise to address any concerns or issues that arose during due diligence. Once due diligence was successfully completed, SPARK assisted in finalizing the transaction, meeting the client’s objective of closing the deal within the targeted six-month timeframe.

Through the strategic efforts of SPARK Business Brokers, the client successfully sold their residential cleaning franchise for the desired price of $480,000 and their real estate for $770,000. By identifying a first-time business owner, SPARK ensured that the franchise’s legacy would be preserved, and the high standard of service would be maintained. The deal was closed within the specified six-month timeframe, allowing the client to retire and transition smoothly into the next phase of their life. SPARK Business Brokers’ expertise, targeted marketing approach, and commitment to client satisfaction played a critical role in facilitating a seamless transition and securing a favorable outcome for both the client’s retirement plans and the continued success of the residential cleaning franchise under new ownership.