Listing ID: 82494
This long established Dry Cleaner added a commercial laundry side in 2019 and has established relationships with several major hotels in the metro. As with most businesses, COVID had some negative impact but the second half of 2021 is showing tremendous growth. Great profits are just the base line for what this laundry is capable of achieving with the current equipment.
The business was established in 1986 The current owner purchased Excel Cleaners in 2009. The current owner added the commercial linen business in 2019 and has been experiencing phenomenal growth with a slight decrease in 2020 directly related to COVID..
This dry cleaning and commercial linen business has few competitors. With a linen contract with just two hotels representing approximately 400 beds in place, the commercial linen side of the business feeds the Dry Cleaning side by collecting guest dry cleaning on the daily laundry runs. In addition to the linen contracts, the Cleaners picks up guest dry cleaning at approximately 25 hotels. According to the owner there is not another dry cleaner in a 10 mile radius!
There is virtually unlimited potential for growth in this business. Specifically on the linen/laundry side of the business more accounts can be added with hotels, hospitals, rehab centers, assisted living facilities, etc.
- Asking Price: $800,000
- Cash Flow: $245,715
- Gross Revenue: $539,345
- EBITDA: N/A
- FF&E: $300,000
- Inventory: $3,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
moving out of state
The deal will include inventory valued at $3,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell operating businesses. Nevertheless, the genuine reason vs the one they say to you may be 2 entirely different things. For instance, they may state "I have a lot of various obligations" or "I am retiring". For many sellers, these factors stand. But, for some, these might just be excuses to attempt to hide the reality of transforming demographics, increased competitors, current decrease in profits, or a range of other reasons. This is why it is really crucial that you not depend absolutely on a seller's word, yet instead, utilize the seller's response combined with your general due diligence. This will repaint an extra reasonable picture of the business's present scenario.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Lots of operating businesses finance loans with the purpose of covering points like inventory, payroll, accounts payable, etc. Remember that sometimes this can imply that earnings margins are too tight. Many organisations come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that must be met or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area draw in brand-new consumers? Many times, businesses have repeat customers, which create the core of their day-to-day revenues. Certain variables such as new competitors sprouting up around the location, roadway building, and also employee turn over can impact repeat customers and negatively affect future profits. One essential thing to consider is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business regularly, the greater the chance to develop a returning client base. A last thought is the general location demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? Just how might the local typical household income influence future earnings potential?