Listing ID: 76568
Business Overview
This large dry cleaner and laundry is an established 22-year-old, environmentally green, independent dry cleaner with a processing plant and main retail location near the Denver Tech Center, in the center of the state’s wealthiest residential neighborhoods of homes and condos.
As COVID wipes out many dry cleaners, the remaining ones in the best locations will be stronger. This is a business that is positioned ideally to dominate the smaller post-COVID market.
The owner has owned the business since 1999. He only works 15 hours weekly as a part-time employee. The plant is environmentally clean and state-of-the-art. He is selling after 22 years and after an injury in 2019 that has caused him to lose interest in the business. He feels he has plenty of time to sell and also coordinate with a new owner for an orderly transition.
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Financial
- Asking Price: $595,000
- Cash Flow: $165,000
- Gross Revenue: $900,000
- EBITDA: $100,000
- FF&E: $150,000
- Inventory: $5,000
- Inventory Included: Yes
- Established: 1999
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,960
- Lot Size:N/A
- Total Number of Employees:9
- Furniture, Fixtures and Equipment:N/A
Dry cleaning & laundry plant, retail and small office facility currently leased to the company. Landlord will be happy to renew the lease. Spacious with room for expansion. (Home Based)
Seller will be available to train and assist new owner as needed.
Owner is planning a new endeavor that will allow plenty of time to train a new o
There are many competitors. COVID has reduced demand, however, and some competitors will predictably not make it when the COVID assistance funds run out. This is a market of many small competitors. The total market may never recover to its full pre-COVID level, but the few competitors that make it will thrive. 70% of competitors are NOT eco-friendly and still use the solvent known as “PERC.” This company changed over in 2018 and has an environmental “clean bill of health.” As the market recovers, this owner will recommend to a new owner a plan to dominate the market that will work. After, 22 years in the business, the current owner just doesn’t want to do it himself.
Coming out of this recession, this business is set to dominate. Just why, however, is something the current owner wishes to explain privately to a new owner.
This Business Is Home Based
Additional Info
The company was established in 1999, making the business 23 years old.
The deal shall include inventory valued at $5,000, which is included in the listing price.
The company has 9 employees and is situated in a building with disclosed square footage of 4,960 sq ft.
The real estate is leased by the company for $9,077 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell businesses. Nonetheless, the genuine factor and the one they say to you may be 2 totally different things. As an example, they may claim "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these factors stand. But, for some, these may just be excuses to attempt to conceal the reality of transforming demographics, increased competition, recent decrease in revenues, or a range of other reasons. This is why it is extremely important that you not rely totally on a vendor's word, yet rather, use the vendor's answer combined with your total due diligence. This will paint an extra reasonable image of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies finance loans with the purpose of covering points like supplies, payroll, accounts payable, and so on. Bear in mind that occasionally this can mean that revenue margins are too thin. Numerous businesses come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that should be satisfied or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area bring in new consumers? Often times, companies have repeat customers, which create the core of their daily profits. Certain variables such as new competition growing up around the area, road construction, as well as personnel turn over can influence repeat customers and also adversely impact future revenues. One crucial thing to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business often, the greater the possibility to construct a returning client base. A final thought is the general area demographics. Is the business situated in a largely inhabited city, or is it situated on the outside border of town? Just how might the local typical house earnings impact future revenue potential?
