How to Sell a Facility Management Business in New Brunswick

Facility management businesses across New Brunswick are entering a seller's market. A combination of labor shortages in Atlantic Canada, consolidation by national FM operators looking to expand their Maritime footprint, and growing demand from healthcare, education, and government sectors has created genuine competition among qualified buyers. If you've built a recurring-revenue operation with reliable contracts, the timing to explore a sale is stronger than it's been in years.

Who Is Buying Facility Management Businesses in New Brunswick

Three distinct buyer groups are actively acquiring FM businesses in New Brunswick right now. First, regional and national FM consolidators (companies like Compass Group Canada, Aramark, and smaller roll-up operators) are hunting for $1 million to $5 million EBITDA targets to expand their Atlantic Canada presence. They prize recurring government and institutional contracts, experienced management teams, and geographic fill-in opportunities. Second, search fund operators and independent sponsors based in Toronto, Montreal, and Boston are deploying capital specifically into Maritime FM and janitorial services businesses with 18+ months of predictable revenue. They typically target $500,000 to $3 million EBITDA and expect the selling owner to stay involved for 6-12 months post-close. Third, PE-backed platform companies in the cleaning and facilities sector are building out regional networks and will acquire smaller operators as add-ons to their existing New Brunswick or Nova Scotia footprint. All three buyer types are motivated by recurring contracts, low customer churn, and the difficulty of hiring and retaining skilled labor in New Brunswick, which makes an established, functioning operation worth a genuine premium.

What Your Business Needs to Look Like Before You Go to Market

• Three years of audited or reviewed financial statements, plus tax returns for the owner and the business. Buyers will normalize your EBITDA by adding back owner discretionary expenses (car, travel, insurance), so ensure your accountant prepares a clean add-back schedule.
• A detailed customer list with contract terms, monthly recurring revenue, contract end dates, and any price escalation clauses. Concentration risk is the single biggest valuation killer: if more than 20-30% of revenue comes from one customer, buyers will discount the multiple or demand a price holdback.
• Documentation of all service contracts, including the names of decision-makers at each account and any renewal history. Buyers will conduct reference calls; contracts that have renewed 3+ times will command higher multiples than one-off agreements.
• An organizational chart showing key staff, their tenure, compensation, and specific skills. Facility management is labor-intensive; buyers need confidence that your operations won't collapse if your operations manager or lead supervisor leaves. Retention agreements for key staff are valuable.
• A transition plan outlining your intended role post-sale. Most buyers expect a 90-day transition minimum, some require 6-12 months. Clarity on this upfront prevents deal friction and can add 5-10% to your valuation.
• Evidence of safety and compliance: insurance certificates, workers' compensation records, health and safety audit reports, and any third-party certifications (ISO 14001, etc.). Institutional and government buyers will not move forward without this.

Valuation: What Multiple Should You Expect in New Brunswick?

Facility management businesses with stable, recurring revenue and low customer concentration typically sell for 4.5x to 6.5x EBITDA in Atlantic Canada, with New Brunswick falling in the mid-to-upper range of that spread. A business generating $800,000 in EBITDA with 80% of revenue from long-term government or institutional contracts could reasonably expect $3.6 million to $5.2 million in valuation. What drives the multiple up: contracts with government agencies (schools, universities, municipalities) that rarely cancel, 3+ year track records of customer retention, experienced management teams that can stay post-close, and niche services (biohazard cleanup, specialized janitorial) that competitors can't easily replicate. What drives it down: customer concentration, reliance on you as the primary relationship-holder, staff turnover, or unresolved safety or regulatory issues. New Brunswick multiples compare favorably to Ontario and Quebec on a dollars-per-EBITDA basis, but trailing slightly behind British Columbia due to the stronger BC real estate and commercial sectors. However, labor availability in New Brunswick works in your favor: buyers know they cannot easily hire and train new crews, so an established team with low turnover commands a meaningful premium.

The Selling Process, Step by Step

• Months 1-2: Engage an M&A advisor with direct relationships to FM buyers in Atlantic Canada. Avoid brokers who are generalists; you need someone who speaks fluently to regional PE firms, search funds, and consolidators and understands the specific drivers of FM valuations. Prepare a one-page executive summary of your business: revenue, EBITDA, number of contracts, top 5 customers by revenue, and customer concentration.
• Months 2-3: Build a data room. Upload three years of tax returns, financial statements, customer contracts, insurance policies, safety certifications, and staff organization charts to a secure virtual room (Citrix ShareFile or Datasite). Buyers will request access and will spend 2-3 weeks diligencing before deciding to move forward.
• Month 3-4: Attend buyer meetings and initial discussions. Expect 4-8 qualified buyer conversations. Most will take place via video call initially. You will be asked to walk through your customer contracts, explain your pricing model, and outline your team structure and compensation. Budget 2-3 hours per serious buyer.
• Months 4-6: Run a formal sale process. Your advisor will circulate a Confidential Information Memorandum (CIM) to 10-15 pre-qualified buyers. Expect 3-4 serious offers within 4-5 weeks. Each offer will include a price, earnout structure (typically 10-20% of purchase price paid over 12-24 months based on revenue retention), working capital adjustments, and your post-close involvement terms.
• Months 6-8: Negotiate LOI and conduct due diligence. The winning buyer will conduct operational due diligence: they will visit your facilities, interview key staff, call your largest customers, and audit your compliance and safety procedures. This phase typically lasts 6-8 weeks. Plan for minimal disruption to your day-to-day operations.
• Months 8-10: Finalize definitive agreements and close. Your buyer's legal counsel will draft a purchase agreement covering reps and warranties, indemnification, and transition terms. Closing in New Brunswick typically requires corporate resolution approvals and minor regulatory filings, but no major provincial hurdles unique to FM sales.
• Months 10-12: Post-close transition. Expect to work with the buyer for 90 days minimum, often longer. Your role is to introduce your customer contacts, train the buyer's team on your operations, and ensure revenue retention through contract renewals. Earnout payments often hinge on zero customer loss during this phase.

Common Mistakes Sellers in New Brunswick Make

• Waiting for a buyer to come to you or listing the business on a general business sales board. Facility management is a relationship-driven, niche industry. Qualified buyers in Atlantic Canada number in the low dozens, not hundreds. Without a targeted outreach process led by someone with real buyer relationships, you will miss multiple offer opportunities and likely receive lowball valuations.
• Failing to normalize EBITDA or document add-backs. If your financial statements show inflated expenses (personal vehicles, travel, meals charged to the business), buyers will require a detailed add-back schedule prepared by your accountant. Without this documentation, negotiations delay and multiples suffer. Prepare a clean normalization schedule before going to market.
• Overestimating customer stickiness or failing to highlight customer concentration risk. If 40% of your revenue comes from one school board or hospital, a buyer will demand either a price holdback (earnout) tied to that customer's retention or will walk away entirely. Be honest and transparent about concentration early; it will save you from a failed process.
• Staying on as operator post-close without a formal transition agreement. If you don't define your role, compensation, and duration upfront, you will spend 6-12 months doing the buyer's work for free. Get this in writing as part of the purchase agreement: specify your hourly rate or consulting fee, your expected hours per week, and the end date. A $50,000 to $150,000 transition fee is standard.
• Neglecting to secure retention agreements with key staff. If your operations manager or lead supervisor departs post-close, the buyer will rightfully claim revenue loss and reduce your earnout. Offer key staff retention bonuses (payable at close or on the anniversary of close) tied to staying through the transition. This costs you $20,000 to $50,000 and protects $200,000 to $500,000 in earnout.