Listing ID: 83968
• Turn-key Dry cleaning business.
• Above industry average annual revenue with good cash flow
• Located in a high-income community
• All of the equipment is in very good condition, the owner is very
meticulous with pro-active maintenance
• Located in a busy plaza with lots of complementary cotenants
• Current owner is willing to train new owner for up to 3 months
• Landlord willing to work with a new owner on a long term lease
- Asking Price: $199,000
- Cash Flow: N/A
- Gross Revenue: $300,000
- EBITDA: $204,000
- FF&E: $80,000
- Inventory: $10,000
- Inventory Included: N/A
- Established: 2008
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,600
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
• Part of the Shopping Strip Plaza - 6,600 SF • Variety of Co-tenancy with lots of synergies • Dedicated two parking spaces for the Cleaner • Landlord willing to work with new Buyer • 13,660 Households in a two-mile radius • High household Income neighborhood $90,781
The seller willing to train new owner for a duration
Owner wants to Retire
• The owner has a very good reputation with his Customers. • Nearby existing Cleaners one on east side a mile away and another 2.3 miles away on North and West side.
Opportunity for growth with expanded advertisement and mail-in flyers with discounts for new Customers
The business was started in 2008, making the business 14 years old.
The sale doesn't include inventory valued at $10,000*, which ins't included in the requested price.
The company has 3 employees and is situated in a building with disclosed square footage of 1,600 sq ft.
The building is leased by the business for $3,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals resolve to sell operating businesses. Nonetheless, the real reason and the one they tell you may be 2 completely different things. As an example, they might state "I have way too many other obligations" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might just be reasons to attempt to hide the reality of transforming demographics, increased competitors, recent reduction in earnings, or a range of other factors. This is why it is really vital that you not count totally on a seller's word, but rather, make use of the vendor's answer along with your overall due diligence. This will repaint a more reasonable picture of the business's current situation.
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. Numerous operating businesses borrow money with the purpose of covering things such as supplies, payroll, accounts payable, etc. Bear in mind that occasionally this can suggest that revenue margins are too tight. Numerous businesses 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 take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that should be met or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area draw in new customers? Often times, operating businesses have repeat customers, which form the core of their everyday profits. Specific elements such as brand-new competition growing up around the area, road construction, as well as staff turnover can impact repeat customers and negatively impact future earnings. One vital point to think about is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business often, the higher the possibility to develop a returning customer base. A last idea is the basic location demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? Just how might the local average family earnings impact future income potential?