Carpet Cleaning Business Buyer Checklist (Australia)

Buying a carpet cleaning business in Australia typically costs between $40,000 and $300,000 depending on whether it's a sole operator with a van and a machine or a multi-technician business with commercial contracts and a recognisable brand. The price range is wide because the quality of what you're actually buying varies enormously — and most buyers don't know what to look for until they've looked at four or five businesses.

This checklist covers the specific due diligence steps for carpet cleaning acquisitions: what to verify, what questions to ask, and the particular risks that don't show up in a general business DD checklist. It complements the due diligence when buying a small business overview, which gives you the broader framework.

The carpet cleaning industry in Australia has a few characteristics that make it worth understanding before you write a cheque.

Equipment is the business. Unlike many service businesses where the main asset is relationships or a licence, a carpet cleaning business lives and dies by the condition of its machinery. A truck-mounted unit in good condition costs $15,000 to $40,000 to replace. If the machines are old, undersized, or poorly maintained, you're not buying a business — you're buying a customer list and a problem.

Revenue is sticky when managed well, fragile when not. Property managers, real estate agents, and strata managers are the most reliable repeat customers in this industry. A business that has locked in two or three property management firms can be remarkably predictable. One I looked at had 60% of its revenue from three property managers — which sounds like customer concentration risk, and it is, but those relationships had been in place for seven years and were genuinely contractual. Context matters.

Franchise businesses need their own analysis. If you're looking at a Jim's Cleaning, Electrodry, or similar franchise, the checklist below still applies, but you'll also need to review the franchise agreement separately — territory exclusivity, renewal terms, marketing levies, and the franchisor's right to terminate. That's a different document with different risks. See the what to look for when buying a trades business guide for the broader picture on franchise vs independent assessments.

The full checklist is gated below. It covers seven phases: equipment, finances, customers, staff and subcontractors, legal and licences, competitive position, and pre-settlement steps. If you want the general comprehensive due diligence checklist that works across all business types, grab that as well — use both together.

This is part of Module 5 (Due Diligence) in the Playbook. Knowing how much the business is worth is covered separately — see how much a carpet cleaning business is worth for the valuation side.

Carpet Cleaning Business Buyer Checklist — Australia

Use this checklist during your due diligence period. Work through it in phases. Flag anything that doesn't stack up and use it as a basis for questions to the seller or their accountant. Nothing here is legal advice — get a lawyer and an accountant across the deal before you sign.

Phase 1: Equipment Assessment

The machines, vehicles, and ancillary equipment are the backbone of the business. Don't skip this section.

Identify every piece of equipment included in the sale. Get a full asset list from the seller. Compare it to what's actually in use — phantom assets (listed but broken or missing) are more common than you'd think.
Record the make, model, and age of each truck-mounted or portable extraction unit. Truck-mounted units (Prochem, Sapphire, HydraMaster, Butler) have a useful commercial life of roughly 8 to 12 years. If they're past that, factor in replacement cost.
Start and run every machine yourself, or have a technician do it during your inspection. Check vacuum pressure, water pressure, heating temperature, and hose condition. Ask to see the last service record.
Inspect vehicle condition and registration status. Are vans roadworthy? Are they within their registration and next service intervals? Are they included in the sale price or leased?
Check for any finance outstanding on equipment or vehicles. A Personal Property Securities Register (PPSR) search will show any security interests registered against specific items. If there are encumbrances, they follow the asset, not the seller.
Inventory consumables and chemicals on hand. Note the value of stock included in the sale (pre-treatments, detergents, deodorisers, protectors). Clarify whether this is included in the purchase price or priced separately.
Ask about equipment warranty and preferred service provider. Who services the machines? Is there an ongoing service contract? Are spare parts locally available for the makes in use?
Assess storage and home-base arrangements. Does the business operate from a commercial premises or from the owner's home? If premises are included, review the lease. If home-based, confirm the buyer is comfortable with that model.

Phase 2: Financial Verification

Obtain three years of tax returns for the business entity. Cross-reference turnover declared to the ATO with revenue in the P&L. Discrepancies need an explanation.
Obtain three years of profit and loss statements. Ask for monthly breakdowns, not just annual. Seasonal patterns (carpet cleaning slows in winter, picks up before Christmas) should be visible in the data.
Verify the BAS history. Request the last 12 quarters of Business Activity Statements. Compare GST-exclusive turnover in BAS lodgements to turnover in the P&L. If they don't reconcile, dig in.
Identify and verify all add-backs. Sellers will adjust EBITDA by adding back owner salary, personal expenses run through the business, and one-off costs. Make sure each add-back is documented and defensible. See the financial red flags checklist for the full list of what to watch for.
Calculate revenue concentration by customer type. What percentage comes from residential one-off calls, repeat residential customers, property managers, strata managers, and commercial clients? The mix tells you about revenue stability.
Check outstanding debtors. Get an aged debtors report. Any invoice over 60 days is a warning sign — either the customer won't pay or the seller hasn't chased it. Clarify who collects outstanding debtors post-settlement.
Verify any ongoing contracts or service agreements. Are commercial cleaning contracts in writing? When do they expire? Can they be transferred to a new owner? Are there price adjustment clauses?
Review recent job records against invoicing. Pick 20 jobs from the last three months at random and trace them from booking through to invoice and payment. Any gap between jobs performed and jobs invoiced suggests cash sales not being declared.
Confirm working capital requirements. How much cash does the business typically carry? Are there seasonal peaks that require more float? Understand what happens to the bank balance around Christmas and January.

Phase 3: Customer Base Assessment

Request a full customer list with contact details, revenue per customer, and last service date. Be aware that sellers are often reluctant to share this before an NDA is signed and a head of terms or LOI is agreed. That's reasonable — but you should get it before you sign a binding SPA.
Segment customers into residential one-off, residential repeat, property managers, strata, and commercial. Each segment has different churn characteristics. Property manager and strata revenue is generally stickier than residential one-off.
Identify the top five customers by revenue. What percentage of total revenue do they represent? For each, understand whether the relationship is personal to the current owner or transferable. A property manager who has been dealing with the owner by name for a decade may or may not care who the new owner is — that varies.
Ask to review email correspondence or CRM records for the top 10 customers. Is the relationship warm? Are there any complaints, disputes, or outstanding issues?
Check Google reviews. Volume, recency, and rating tell you a lot about the business's reputation. Flag any negative reviews and ask the seller to explain them.
Identify any customer contracts with exclusivity, pricing commitments, or volume guarantees. These are assets if favourable, liabilities if not.
Ask about customer referral sources. How do new customers find the business — Google Ads, word of mouth, real estate agent referrals, repeat booking? A business with strong organic referral flow is worth more than one dependent on ongoing ad spend.

Phase 4: Staff and Subcontractors

Identify all employees and subcontractors. Get employment agreements or subcontractor agreements for each. Confirm whether casual employees expect ongoing work.
Review payroll records for the last 12 months. Verify superannuation has been paid on time and in full (the ATO takes super compliance seriously, and arrears become your liability on settlement if not handled correctly).
Assess each technician's capability and intention to stay. Talk to staff where the seller permits. Understand who is essential and who is peripheral. A one-van, one-owner-plus-one-technician operation where the technician is the owner's brother-in-law who plans to leave when the owner does is a very different proposition to what it looks like on paper.
Confirm WWVP/Working with Children or equivalent checks if the business services schools, childcare centres, or similar. In some states this is required for anyone working on those premises.
Clarify the seller's ongoing involvement. Will the seller agree to a handover period? How long? What does that cover? Is their handover contribution priced into the deal or assumed for free?

Phase 5: Licences, Insurance, and Compliance

Confirm there are no industry-specific licences required for carpet cleaning in your state. General carpet cleaning doesn't require a trade licence in most Australian states, but commercial or specialised cleaning (asbestos cleaning, water damage restoration using specific chemicals) may have additional requirements.
Verify public liability insurance is current and adequate. Minimum $10 million public liability is standard for commercial work. Check the expiry date and whether the policy covers employees and subcontractors.
Check for any insurance claims history. Ask the seller to provide a claims history from their insurer. Repeated claims, especially property damage claims, are worth understanding before settlement.
Confirm vehicle insurance covers commercial use. Standard comprehensive car insurance doesn't cover commercial use of a vehicle. If the business vans aren't on a commercial policy, that's a gap that needs fixing before you operate.
Search for any ASIC registrations or business name registrations. If the business trades under a name different from the entity name, confirm that business name is registered and included in the sale.
Do an ABN lookup on the business entity. Confirm the entity is registered for GST, the ABN is active, and the entity name matches the trading name and the entity in the contract.

Phase 6: Competitive Position and Market Assessment

Search Google Maps for carpet cleaning businesses operating in the same area. Note how many there are and whether any appear to be national operators (COIT, Electrodry, Jim's). Local independents compete primarily on price and relationships; national franchises compete on brand and systems.
Check the business's Google Maps ranking for key search terms. If the business consistently appears in the top three results for "carpet cleaning [suburb]" or "carpet cleaner near me", that organic position has real value. If it doesn't appear at all, factor in the cost and time to build that visibility.
Understand the pricing structure. Is the business quoting per room, per square metre, or by job type? How does pricing compare to local competitors? A business that has been underpricing for years to maintain volume will need a price correction — which is both an opportunity and a risk.
Ask about any known competitor threats. Has a new franchise moved into the area? Is a major property management group currently tendering cleaning services to multiple providers?

Phase 7: Pre-Settlement Steps

Confirm what is included and excluded from the purchase price. Equipment, vehicles, customer list, business name, phone number, website, social media accounts, Google Business Profile access, email address, and stock — confirm each is included or excluded in writing.
Verify the Google Business Profile will be transferred. Reviews, photos, and ranking history are attached to the GBP account. If the seller has it under a personal Google account, they need to transfer ownership before settlement.
Confirm the website and domain are included and who they're registered with. Check the domain registration expiry. A domain that expires two weeks after settlement and the seller forgot about it is a recoverable problem — but annoying.
Get a telephone number transition plan in writing. The business phone number is a genuine asset. If it's a mobile number on the seller's personal plan, you need a plan to port or redirect it.
Review the sale agreement carefully for any restraint of trade clause. The seller should be restrained from starting a competing carpet cleaning business in the same area for a reasonable period (typically two to five years). Check the geography and duration are realistic.
Arrange final settlement figures with both legal teams. Confirm the working capital adjustment method, treatment of outstanding debtors, and any pre-paid bookings that carry over to the new owner.
Do a final physical inspection of all equipment and vehicles on settlement day. Confirm nothing has changed, broken, or been removed since your due diligence inspection.

What to do after you settle

The due diligence is done — now the real work starts. For what to focus on in your first 90 days as a new owner, grab the first 90 days action plan. For broader guidance on the acquisition process from first look to settlement, work through Module 5 and the surrounding modules in the Playbook.

For more reading on the financial side of evaluating this type of business, the how much a carpet cleaning business is worth article covers valuation methodology and what moves the price up or down.

Carpet Cleaning Business Buyer Checklist (Australia)

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