Listing ID: 77568
This 20+ year established environmentally friendly dry and wet cleaning facility has a full onsite plant. Cleaners features 2890 sq ft, 1800 slots (900 conveyor and 900 on floor), finishing/presser machine’s, Inno Clean dry cleaning machine, washer/dryer, to name a few. Also included is a Clean Cloud POS system and full security system. Cleaners focus is on dry cleaning, uniforms, wedding gowns/tuxedo’s, laundry services, and sewing/alterations catering to an upscale, luxury clientele. This is a non-toxic establishment. Owners are ready for retirement. Call agent for details.
- Asking Price: $425,000
- Cash Flow: $203,416
- Gross Revenue: $479,565
- EBITDA: N/A
- FF&E: $289,300
- Inventory: $6,000
- Inventory Included: Yes
- Established: 1998
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,860
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
The business was started in 1998, making the business 24 years old.
The transaction will include inventory valued at $6,000, which is included in the asking price.
The business has 5 employees and is located in a building with disclosed square footage of 2,860 sq ft.
The property is leased by the business for $8,883.08 per Month
Why is the Current Owner Selling The Business?
There are all kinds 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 state "I have way too many various obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may simply be reasons to try to conceal the reality of transforming demographics, increased competition, recent reduction in revenues, or a variety of various other reasons. This is why it is extremely essential that you not count completely on a vendor's word, however rather, use the seller's solution combined with your total due diligence. This will paint an extra reasonable image of the business's present circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous operating businesses finance loans with the purpose of covering points such as stock, payroll, accounts payable, etc. Remember that occasionally this can imply that earnings margins are too tight. Numerous companies come under a revolving door of taking loans as a way to pay back other loans. Along with 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 may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area attract brand-new clients? Many times, companies have repeat consumers, which create the core of their everyday revenues. Certain variables such as new competition sprouting up around the area, road building, and employee turn over can affect repeat clients and also adversely affect future earnings. One essential point to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business regularly, the higher the chance to construct a returning customer base. A last thought is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the outskirts of town? How might the local mean household earnings effect future earnings prospects?