Listing ID: 82944
I am looking to sell a well established dry cleaners and the only locally owned commercial laundry business in Shreveport, LA. This Dry Cleaners has 6 accounts (including the only dry cleaners on BAFB) that provide additional revenue streams with room to expand the business. Also has a valet service. Last month the owner spent $60,000 plus moving the plant to a new location. The commercial laundry service provides linens to numerous restaurants, country clubs, and banquet facilities.
Willing to owner finance a portion of the asking price.
- Asking Price: $550,000
- Cash Flow: $150,000
- Gross Revenue: $652,526
- EBITDA: N/A
- FF&E: $75,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2005
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
Like other businesses they were impacted by the Covid crises but have rebounded well. The business has multiple locations and revenue streams. Total gross revenue increases from QTR1 to QTR2 in 2021 (for both physical locations and revenue steams) were a combined 63%. The commercial linens service has increased by more than 45%.
The venture was established in 2005, making the business 17 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell operating businesses. Nevertheless, the real reason and the one they say to you may be 2 totally different things. As an example, they might say "I have too many other obligations" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may just be justifications to try to hide the reality of changing demographics, increased competition, current decrease in revenues, or a range of other factors. This is why it is extremely vital that you not depend entirely on a vendor's word, but rather, utilize the vendor's answer in conjunction with your total due diligence. This will paint a more practical picture of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your deal. Lots of businesses take out loans in order to cover items such as stock, payroll, accounts payable, etc. Bear in mind that occasionally this can imply that revenue margins are too tight. Lots of companies fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that should be fulfilled or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area bring in brand-new consumers? Most times, operating businesses have repeat consumers, which form the core of their daily revenues. Certain factors such as new competitors growing up around the location, roadway building, and also personnel turn over can impact repeat clients and negatively influence future incomes. One important thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Certainly, the more individuals that see the business regularly, the better the possibility to construct a returning customer base. A final thought is the basic area demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? How might the local mean household income influence future earnings prospects?