Three times SDE on 99% recurring revenue with zero active client churn and 85% revenue growth since 2022 is not an aggressive ask. Businesses with subscription-equivalent recurring revenue at this retention profile typically transact in the 3.5x–5.0x range. The seller is pricing at the low end of the defensible range. Revenue of $352,820 on five W-2 employees, no real estate, and $100–$150/month in supplies generates a 70.8% SDE margin. The 2026 projection of $400,000+ implies a buyer who closes at $750,000 is purchasing at less than 3.0x trailing on a forward-SDE basis within 12 months. Full marks.

SBA pre-approval confirmed. A buyer enters at approximately 10% down — $75,000 on a $750,000 acquisition. At current SBA 7(a) rates on a 10-year amortization, annual debt service on $675,000 would be approximately $85,000–$95,000. Against $250,000 current SDE, post-debt-service cash flow to the buyer is approximately $155,000–$165,000 in year one. Equipment owned outright, no real estate exposure, no lease to assume. Three points withheld for undisclosed EBITDA and undisclosed seller carry terms.

Direct business acquisition. No fund fees, no promote, no waterfall. A broker is involved (HS Listing ID-71620) — commission is seller-paid, standard for the deal type. Two points withheld for the brokered structure and the NDA requirement for location disclosure, which adds a step before a buyer can verify market context.

85% revenue growth since 2022 — four years of documented momentum. Zero active churn over a multi-year base. Within-client expansion is evident: 35 clients across 40 locations means some clients have added locations to their contracts without a new sales motion. That embedded growth is the most durable form of commercial cleaning expansion. Two points withheld for the undisclosed establishment date — a gap worth clarifying early in diligence — and the absence of any individually named principal.

Five W-2 employees, all bonded and insured, averaging two years of tenure. Written SOPs in place. New employee onboarding to full productivity in three to five days. Owner involvement capped at ten hours per month. The operation does not depend on the owner's relationships, expertise, or daily presence. Two-year average tenure on a five-person team in an industry with notoriously high turnover, with zero client churn as the downstream proof — this business has already survived the most common operational risk in its category. Full marks.

Contracts fully assignable at close — no renegotiation required with any existing client when ownership transfers. In a business acquisition, that assignability clause is the most structurally important sentence in the listing. The limitation is geography: Portsmouth, New Hampshire is a specific regional market. A buyer who wants growth beyond the current base is working within a regional constraint. Four points withheld for geographic concentration, undisclosed exact market area until NDA, and the absence of named individual client relationships that would indicate which accounts represent the largest revenue concentration.

Commercial cleaning is one of the most durable service categories in the small business economy. Offices, retail locations, medical facilities, and commercial spaces generate recurring cleaning demand that is budget-line rather than discretionary. Portsmouth is a small, affluent coastal city — law firms, financial services, healthcare practices, and hospitality venues are the commercial core. Rockingham County is one of the higher-income counties in New Hampshire. No state income tax, no general sales tax, no special licensing required to operate. One point withheld for the regional market constraint.

Commercial cleaning is fragmented. At the local level, competitors include owner-operated businesses and national franchise operators (Anago, Corvus, Stratus). What this business has that franchise competitors do not is three-plus years of demonstrated client loyalty in specific accounts — clients who have already evaluated alternatives and chosen to stay. That embedded loyalty cannot be manufactured through marketing; it comes from service quality and relationship continuity. The zero active churn figure in a market with active franchise competition is the competitive positioning evidence. Two points withheld for market fragmentation and the absence of specific competitive analysis about which franchise operators are active at what price points.

Three levers are visible from the public listing. Market rate pricing — if current contracts are below prevailing Portsmouth-area rates, a buyer who reprices on renewal cycles increases revenue without adding a client. Client expansion — 35 clients averaging 1.14 locations is an in-base sales opportunity with no new relationship required. Geographic expansion — the Seacoast New Hampshire region (Exeter, Dover, Newburyport, Kittery) contains additional commercial density within reasonable service range. One point withheld because all three levers require active management — the current owner is not pursuing any of them.

Not disclosed in the public listing. A business that has grown 85% since 2022 and was founded in 2021 has a very different risk profile than one founded in 2010. Ask the broker for the founding date before any other diligence step.

35 clients sounds diversified. But commercial cleaning revenue can concentrate significantly in a small number of large accounts. If the top five clients represent 60% of $352K in revenue, the zero-churn narrative becomes a key-client-retention story. Request a client revenue breakdown (with clients anonymized if necessary before NDA).

Withheld pending NDA — standard practice. Once you have the location, verify which franchise operators are active in that specific market, at what price points, and what market-rate per square foot for commercial cleaning is in the Portsmouth area. If this business is below market on pricing, that is upside. If it is at market, that changes the growth narrative.

On a five-person team, any single employee represents 20% of operational capacity. SOPs protect against knowledge loss, but client comfort with the specific people who service their facilities is a real transferability factor. Understand which employees hold the most critical client relationships and whether their continued employment post-acquisition is secure.