Listing ID: 76261
This is the only laundromat in Leadville and the cost to open a new one is prohibitive; there has been no competition for years. The business for sale includes 24 washers of varying capacity and 24 dryers. There are also 4 coin-operated showers catering to the summer tourist industry.
There are several potential growth opportunities including further development of commercial accounts from nearby resorts such as Copper, Breckenridge, Keystone, Vail, Beaver Creek and Aspen.
This 58 year old business will appeal to buyers seeking an easy-to-operate business with a steady cash flow, no inventory costs or accounts receivables to deal with.
- Asking Price: $307,000
- Cash Flow: $99,300
- Gross Revenue: $194,050
- EBITDA: N/A
- FF&E: $14,070
- Inventory: N/A
- Inventory Included: N/A
- Established: 1964
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,700
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Seller owns the property (not included in the sale) and will negotiate a new lease with the buyer. The premises are about 1,700 square feet. There are 24 washers and 24 dryers, all of which are properly maintained and serviced regularly. There also 4 coin-operated showers. New hot water systems and a camera surveillance system have been installed and they are included in the sale.
Seller will provide training for a negotiated period of time following close of escrow.
A factor is: there is no local competition and the nearest competitor is 29 miles away in Frisco. Barrier to entry for a new competitor is significant due to the cost of securing new water and sewer taps; to open a new laundromat with 24 washing machines would cost almost $255,000 just for these taps. The likelihood of a new competitor is considered low.
The seller believes there is an excellent opportunity to expand the commercial client base, especially from businesses located in nearby ski resorts such as Copper, Breckenridge, Keystone, Vail, Beaver Creek, and Aspen. Other opportunities could include the introduction of a pick-up and delivery service and a dry-cleaning service. DURING THE COVID PANDEMIC, LAUNDROMATS WERE DEEMED AS ESSENTIAL SERVICES AND NEVER HAD TO SHUT DOWN. MOUNTAIN LAUNDRY'S 2020 REVENUE WAS ALMOST FLAT COMPARED TO 2019!
The venture was founded in 1964, making the business 58 years old.
The business has 4 employees and is located in a building with disclosed square footage of 1,700 sq ft.
The real estate is leased by the company for $4,000 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell companies. Nevertheless, the true reason vs the one they tell you might be 2 completely different things. As an example, they may state "I have way too many various obligations" or "I am retiring". For many sellers, these factors stand. However, for some, these may simply be reasons to attempt to conceal the reality of transforming demographics, increased competitors, current decrease in incomes, or an array of other reasons. This is why it is really important that you not count entirely on a seller's word, yet instead, use the seller's answer along with your overall due diligence. This will paint an extra realistic picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Lots of operating businesses take out loans in order to cover points such as stock, payroll, accounts payable, so on and so forth. Remember that in some cases this can imply that revenue margins are too thin. Many organisations come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that must be satisfied or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location bring in brand-new clients? Often times, businesses have repeat customers, which develop the core of their daily profits. Certain variables such as new competitors growing up around the area, roadway construction, and also employee turnover can affect repeat customers and adversely affect future revenues. One important point to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business on a regular basis, the better the opportunity to build a returning client base. A last idea is the general 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 neighborhood typical home income impact future earnings prospects?