Listing ID: 74915
Established Dry Cleaning Plant and Drop Store located in Large Grocery Store anchored Centers. Profitable East Valley Businesses.Experienced Seller is retiring and will train the buyer. Plant and Drop location are known for high quality Retail garment processing, along with wholesale production. Addition of Web Site and Advertising are recommended to help with additional sales volume.
- Asking Price: $185,000
- Cash Flow: $82,000
- Gross Revenue: $320,000
- EBITDA: N/A
- FF&E: $77,000
- Inventory: $3,000
- Inventory Included: Yes
- Established: 2007
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Plant leases approx 1,800 sq. ft approx $3,745.00 total monthly rent. Drop Store location leases approx: 1,200 sq. ft. Total monthly rent approx $2,968.00.. Grocery Store anchored, higher income demographics.
Retirement from this business.
Yes, the Seller will explain.
The company was started in 2007, making the business 15 years old.
The sale does include inventory valued at $3,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell businesses. However, the real reason and the one they tell you may be 2 absolutely different things. For instance, they may say "I have too many other obligations" or "I am retiring". For many sellers, these reasons are valid. But, for some, these might just be reasons to try to hide the reality of changing demographics, increased competition, current decrease in revenues, or an array of other factors. This is why it is extremely crucial that you not depend totally on a vendor's word, but rather, use the seller's answer in conjunction with your overall due diligence. This will paint a more practical picture of the business's present situation.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies finance loans so as to cover points such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can indicate that earnings margins are too small. Lots of organisations fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that must be satisfied or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location bring in brand-new consumers? Often times, operating businesses have repeat clients, which form the core of their everyday profits. Specific factors such as new competition sprouting up around the location, road building and construction, and also employee turn over can impact repeat consumers and also adversely impact future revenues. One essential point to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Clearly, the more people that see the business on a regular basis, the higher the chance to build a returning client base. A last thought is the basic area demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? Just how might the regional typical house income effect future revenue potential?