Business Overview

Rare Acquisition Opportunity: Profitable, Established Market Leading Brand Name!

Highly recognized, long tenured, and successful laundry, dry cleaning, and carpet cleaning business is offered for immediate sale by retiring owner. Located in a growing, desirable, and populated metropolitan Midwest market, this operation has a successful multi-decade track record of delivering customer satisfaction to its clients while delivering superb returns to its shareholders.

The business has a proven, long standing success formula which will enable new ownership to generate returns on Day One. Institutionalized processes, convenient customer-driven facilities, diversified service offerings, talented management team, respected brand name, and a highly loyal customer base are just a few of the critical value drivers. Key reasons to acquire:

1) Consistent, profitable growth and exceptional proven financial performance
2) Market leading brand equity which generates significant pricing power above competition
3) Proven customer loyalty with an unequaled, decades-in-the-making database
4) Broad service offerings — laundry, alterations, dry cleaning, carpet cleaning and more
5) Expansive geographic footprint serves a diverse, populated, and growing marketplace
6) Diversified customer base including commercial, industrial, and residential clients
7) Multi-channel delivery — 11 in-store retail locations plus free delivery routes (10)
8) Point of Sale system provides timely, centralized management oversight & control
9) Clean books, professional record keeping, & annually CPA-reviewed financial statements
10) Company-owned processing plant, corporate headquarters, and flagship retail real estate

Over the last 4 tax years, annual weighted average business revenues of $8.3M generated a healthy $790,000 in annually weighted average cash flows. The 7.1% adjusted margin is clear evidence of the company’s favorable pricing position (and carpet cleaning business mix) when compared to the typical USA dry cleaner according to IBIS World data (5.2% profit margin). The founding guiding principle of the company – Professional Cleaning Expertise and Outstanding Customer Service – has now become an established brand hallmark and sustainable competitive advantage. The new ownership team will also become the benefactor of the already invested, significant capital expenditure in a 29,874 square foot central laundry processing facility (which also houses the flagship retail location and corporate offices), combined with a network of convenient leased locations, the business is well positioned for growth while it continues to leverage its premium margin position in the marketplace.

Financial

  • Asking Price: $6,700,000
  • Cash Flow: $511,033
  • Gross Revenue: $7,123,752
  • EBITDA: N/A
  • FF&E: $2,000,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1910

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:29,874
  • Lot Size:N/A
  • Total Number of Employees:100
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This business has a significant, dominant, and market leading presence within a major Midwest market. The main facility is a company-owned 29,874 square foot laundry processing plant which houses the flagship retail location and corporate offices. The plant is located in a business center (including favorable grand-fathered zoning) which is nestled in a highly, desirable residential district situated close to downtown, prime shopping, and popular eateries. The location offers superb highway accessibility enabling convenient access to the entire metro customer base while supporting the 11 in-store retail locations (which are leased properties). The company-owned building is on a 3/4 acre land parcel. Also included in the offering is a property adjacent to the processing plant real estate which serves as valuable employee parking.

Purpose For Selling:

Owner Retirement.

Pros and Cons:

The laundry and dry/carpet cleaning industry in this market is characterized by a multitude of smaller, somewhat fragmented players and 6-7 medium sized, multi-store brand names. The offered company is by far and away the clear market leader in all key performance measures -- tenure, brand equity, size, geographic footprint, service menu, financial results, pricing power, and owner loyalty. The race for a distant second place are companies 25-30% the size of the market leader.

Opportunities and Growth:

While the company has diversified its offerings over time, there are both: 1) service line extensions and 2) adjacent market geographic expansion options. The company has strong ownership of "residential and commercial cleaning" branding in this market which opens up expansion options into areas such as maid services, window cleaning, automotive detailing, or power washing, etc. Geographic expansion into large adjacent territories via leveraging of the existing service offerings and present brand equity is also another growth avenue.

Additional Info

The company was founded in 1910, making the business 112 years old.

The company has 100 FT/30 PT employees and resides in a building with disclosed square footage of 29,874 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals resolve to sell operating businesses. However, the real reason vs the one they say to you may be 2 totally different things. As an example, they might say "I have a lot of various obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may just be justifications to try to conceal the reality of altering demographics, increased competitors, recent decrease in incomes, or a variety of various other factors. This is why it is very crucial that you not rely completely on a seller's word, yet rather, use the vendor's response together with your general due diligence. This will repaint an extra reasonable picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies take out loans in order to cover things such as stock, payroll, accounts payable, so on and so forth. Remember that sometimes this can mean that revenue margins are too thin. Lots of organisations fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that need to be fulfilled or may result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area draw in brand-new customers? Often times, businesses have repeat clients, which develop the core of their everyday revenues. Specific factors such as brand-new competitors sprouting up around the location, roadway building, and also personnel turnover can impact repeat customers as well as adversely influence future profits. One important thing to consider is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business regularly, the better the opportunity to develop a returning customer base. A last idea is the general location demographics. Is the business located in a largely inhabited city, or is it situated on the outside border of town? How might the regional mean home income impact future earnings prospects?