Business Overview

This wet cleaning business (in the process of dry cleaning) is extremely unique in that the owner has invested the time and money to have an organic cleaning machine that avoids chemicals which a normal dry cleaner might have. This business has been established for many years while also providing alteration services. Amazing location in the western suburbs with a high traffic street and a friendly landlord. This is definitely worth a look for anyone even minutely interested in this category.
40 years in business. 20 years with current owner

Financial

  • Asking Price: $65,000
  • Cash Flow: N/A
  • Gross Revenue: $52,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,700
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

retiring

Additional Info

The company has 2 employees and is situated in a building with estimated square footage of 1,700 sq ft.
The building is leased by the company for $0.00

Why is the Current Owner Selling The Business?

There are all types of reasons individuals decide to sell companies. Nevertheless, the genuine reason and the one they say to you may be 2 absolutely different things. For instance, they might claim "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons stand. However, for some, these may simply be justifications to try to hide the reality of altering demographics, increased competition, recent reduction in profits, or a range of various other reasons. This is why it is really important that you not count absolutely on a vendor's word, yet instead, use the seller's response along with your overall due diligence. This will repaint an extra sensible image of the business's current scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Numerous operating businesses take out loans with the purpose of covering items such as stock, payroll, accounts payable, etc. Keep in mind that occasionally this can indicate that profit margins are too tight. Numerous organisations fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that should be met or might result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location draw in new clients? Many times, operating businesses have repeat clients, which create the core of their daily revenues. Certain aspects such as new competitors sprouting up around the location, roadway building and construction, and employee turnover can affect repeat clients as well as adversely impact future revenues. One important thing to consider is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business on a regular basis, the better the possibility to develop a returning customer base. A final thought is the basic area demographics. Is the business situated in a densely populated city, or is it located on the outside border of town? Just how might the local mean home income impact future earnings prospects?