Listing ID: 74244
The business is a long-standing community dry cleaner with two locations. One location is owned with a 4000 SF plant and .5 acres. The other location is a drop-off location that is leased. The owner is the founder and has raised his family doing this. It’s now time to retire and pass this opportunity to the next owner. The real estate expense is already figured into the SDE shown.
This business has served the community for decades and has a wealth of goodwill behind the name.
The business has an existing contract with opportunities to gain more. The current owner has not pursued those opportunities while winding down for retirement but they are ripe for a new owner.
- Asking Price: $550,000
- Cash Flow: $45,823
- Gross Revenue: $352,543
- EBITDA: N/A
- FF&E: $55,400
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell companies. However, the true reason and the one they tell you might be 2 completely different things. As an example, they might state "I have a lot of various obligations" or "I am retiring". For many sellers, these factors are valid. However, for some, these may just be justifications to try to hide the reality of transforming demographics, increased competitors, current decrease in profits, or a range of other factors. This is why it is extremely vital that you not depend entirely on a vendor's word, but instead, use the seller's response together with your overall due diligence. This will paint a much more reasonable picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current business is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses finance loans with the purpose of covering points like stock, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can suggest that earnings margins are too small. Many organisations fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that need to be met or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location bring in brand-new clients? Often times, operating businesses have repeat consumers, which form the core of their everyday earnings. Particular aspects such as new competition growing up around the location, roadway building and construction, as well as staff turnover can affect repeat customers and also adversely affect future earnings. One essential thing to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the chance to build a returning customer base. A final idea is the general location demographics. Is the business situated in a largely populated city, or is it located on the edge of town? How might the neighborhood median household earnings influence future income potential?