Business Overview

Long established dry cleaning plant established for over two decades is available for your acquisition. This business was originally established in 2001 and was later acquired by the current owner of the business in late-2019 November. Surrounded by many residential neighborhoods with high household incomes, this business is poised for future growth in a largely untapped marketplace. Competition can be expected for this industry, but this competes with all local competitors by having top-of-the-line hydrocarbon machines that provide high-quality services at an affordable price point. Gross sales have been $120K per year and have been consistent since the acquisition of the business in 2019. While some marketing is through direct mail and Valpak, delivery services and corporate accounts can help this business grow at a very fast pace. Adding a satellite pick-up station will also boost sales by capturing the untapped market of various local areas. The owner of the business also operates this business as an owner-operator working full-time managing the business as well as keeping all the books and records up-to-date. State-of-the-art equipment less than 3 years old within this facility will allow the new potential owner to seize many new opportunities for growth in the near future. This is a fantastic business with huge growth potential and is ready for a potential buyer to take it to the next level.

Listing ID #001160
For more info, please call Moon Kim at 1-866-519-2421.

Financial

  • Asking Price: $119,000
  • Cash Flow: N/A
  • Gross Revenue: $120,000
  • EBITDA: N/A
  • FF&E: $175,000
  • Inventory: $1,000
  • Inventory Included: Yes
  • Established: 2001

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This business is located in a 1,750 SF space of a retail strip center surrounded by many residential neighborhoods and retail businesses. The majority of the equipment is less than 3 years old hydrocarbon machines that are state-of-the-art within the industry.

Is Support & Training Included:

The owner of the business will provide the necessary training needed for a smooth transition into the business operation.

Purpose For Selling:

Other Opportunities

Pros and Cons:

Few competitors are within the immediate market area, but this business competes with those competitors with higher quality machines that provide excellent quality at affordable price points.

Opportunities and Growth:

Marketing is done to the local area through Valpak, direct mailing, and word of mouth. This dry cleaning plant would benefit immensely if they add satellite pick-up stations around the local area and provide delivery services.

Additional Info

The business was founded in 2001, making the business 21 years old.
The deal will include inventory valued at $1,000, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all types of reasons people decide to sell companies. Nevertheless, the real reason vs the one they say to you may be 2 totally different things. For instance, they might claim "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these may simply be reasons to try to hide the reality of altering demographics, increased competitors, recent decrease in profits, or an array of various other factors. This is why it is extremely essential that you not depend entirely on a seller's word, but rather, make use of the seller's solution along with your general due diligence. This will paint a much more realistic image of the business's present scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses take out loans in order to cover points like inventory, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can mean that revenue margins are too thin. Numerous businesses fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that must be fulfilled or might result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area bring in new customers? Most times, businesses have repeat consumers, which create the core of their daily profits. Specific aspects such as new competition growing up around the area, road building, and personnel turn over can affect repeat consumers and adversely affect future revenues. One vital thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business often, the greater the chance to build a returning client base. A last idea is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? Exactly how might the regional typical family income influence future earnings potential?