Listing ID: 82978
Principle Business Advisors presents this established, 50-year-old dry cleaning business for sale in Metairie, Louisiana. This is one of two locations for sale. This business is in an excellent, centralized location surrounded by high-traffic streets. Hydrocarbons have been used at the location since the mid-1990s and the property received a clean environmental inspection in 2001. There is a complete list of loyal clientele that will be included in the sale. The business performs a variety of services for its retail clients and benefits from several wholesale relationships due to its on-site plant.
The numbers listed are 2021 numbers which the current owner expects to improve this year due to the sale and closure of a large local competitor.
Come meet the owner, see this beautiful, modern facility and make an offer!
For more information, contact Joel Duran CM&AA, CEPA, CMSBB at (504) 321-0196.
- Asking Price: $700,000
- Cash Flow: $200,000
- Gross Revenue: $700,000
- EBITDA: N/A
- FF&E: $150,000
- Inventory: $3,000
- Inventory Included: Yes
- Established: 1970
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,000
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
The facility is ~3000 sq ft with a full plant. The building also has additional overhead storage.
The seller will train a buyer for two weeks and then be available as necessary by phone.
The Great Recession of 2008 and the Covid-19 attack of 2020 have not been good for the service industries—including dry cleaning, as well as the commercial real estate industry—but to office worker vacancy rates and the difficulty of shopping centers to collect rent from struggling shop owners. It is expected that by the end of 2021, we will see more than 33 percent of the dry cleaning storefronts that were functioning in 2007 to be closed, and replaced by the new larger and more efficient type of dry cleaning operations. This is similar to what happened in the 1970s when the oil embargo caused a recession and the consumer switched to polyester clothing, resulting in the loss of 1/3 or more of the dry cleaning storefronts to close. Upon the end of the 70s, the recession ended and the consumers went back to natural fabrics, resulting in the revival of the remaining dry cleaners, who became the dry cleaning millionaires of the 1980s! Change always has its upsides and downsides for different groups!
This billion-dollar industry is going through a major paradigm shift from small mom-and-pop operators to sophisticated business people with centralized automated plants, computerized inventory, and many changes that were not known of 10 or 20 years ago. We work with the new breed of dry cleaning entrepreneurs to assist with their growth and operations. Commenting on all of the industry is difficult, as the quality levels, price points, the economy of scale, and markets served are so different! Modern dry cleaning operations are growing into light industrial production and distribution operations. The dry cleaning industry was hit hard by Covid in 2020. Many small dry cleaners have closed, but the larger ones seem to be coming back. As of March 2021, most are averaging 50 percent of what they did for the same months in 2019. This business does not have that problem!
The venture was established in 1970, making the business 52 years old.
The sale shall include inventory valued at $3,000, which is included in the requested price.
The company has 7 employees and resides in a building with disclosed square footage of 3,000 sq ft.
The building is leased by the company for $6,500 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell operating businesses. Nevertheless, the genuine reason vs the one they say to you might be 2 entirely different things. For instance, they might claim "I have too many various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these may just be reasons to attempt to conceal the reality of transforming demographics, increased competitors, recent reduction in incomes, or a range of various other reasons. This is why it is extremely essential that you not depend entirely on a vendor's word, however rather, make use of the vendor's solution along with your overall due diligence. This will paint an extra sensible picture of the business's present circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of businesses finance loans so as to cover points such as supplies, payroll, accounts payable, and so on. Remember that sometimes this can indicate that profit margins are too thin. Many organisations fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that need to be fulfilled or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area draw in new clients? Many times, businesses have repeat consumers, which develop the core of their day-to-day profits. Specific factors such as new competitors growing up around the area, roadway construction, and personnel turn over can impact repeat clients as well as negatively influence future profits. One crucial thing to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Clearly, the more people that see the business on a regular basis, the better the possibility to develop a returning customer base. A final thought is the general area demographics. Is the business located in a densely populated city, or is it located on the outside border of town? Exactly how might the local typical family earnings effect future earnings prospects?