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California’s facility services industry is attracting buyers looking to expand their service capabilities, enter new markets and build larger operating platforms.

Two facility services companies can generate similar revenue and still attract very different acquisition offers.

For facility services business owners, understanding EBITDA multiples is an important first step toward planning a sale. But the multiple alone does not determine what a buyer will pay. The quality of your earnings, strength of your customer contracts, operational stability, and ability to grow can all influence your company’s valuation.

If you own a facility services business, you may have spent years building customer relationships, hiring reliable employees, winning contracts, and growing revenue. But if you decided to sell your company today, how much would a buyer actually pay?

Facility services businesses live and die by their contracts, and buyers know it. When a larger facility services company goes to market, the first thing a serious buyer asks isn’t about revenue or margin. It’s about the contracts behind that revenue: how long they run, when they come up for renewal, and how likely they are to survive a change in ownership.

I had a seller once who told his foreman about the sale almost as soon as we started the process. He needed information only the foreman had, numbers and history that lived in his head and nowhere else, so there was no way around bringing him in early.