11/29/2023 0 Comments Estat sell laundry mattThis is the most difficult evaluation to make. To start, determine the age and condition of your equipment. The General Rules For Establishing A Priceĭepending upon the market or location of the Laundromat, pricing can actually range between 1 and 1.5 times gross annual sales. Buyers will want to know of potential growth opportunities and new competition. Also, be aware of any new construction projects going on in your area and any new Laundromats opening. As you know, water consumption is a big part of this business and an educated buyer is going to want to know exactly what he/she is facing in terms of a water bill. Last but not least, be prepared to discuss your utility bills. If you have documentation of services and parts replaced, be prepared to present those to the potential buyer. Buyers are going to want to know who has maintained it and when things were last replaced. Going back to your equipment, be prepared to answer a lot of questions here. If you're in a suburban area this probably won't be a huge concern but if your Laundromat is in a more urban area a potential buyer is going to want to know what the crime statistics are so they can understand what their risks are. One thing that is guaranteed to come up is the crime rate in the area your business is in. Trying to do all of this on your own would take much longer than if you enlisted the help of a professional business broker.ĭuring the sales process you need to be prepared to handle objections and concerns from potential buyers that are critically evaluating your business. While you will have to give a broker a portion of the sale price for their service, brokers have the ability to help you position your business properly in the business for sale market and to connect you with qualified potential buyers. While it may seem like the right thing to do to maximize your profits by not having to share them a broker, the opposite is true. Just because your business is popular with buyers doesn't mean you should try to go through this process on your own. Work With A Broker Or Laundry Consultant / Advisor to 50 lbs.) - Life Span 10-15 yearsĭryers (30 lbs. to 14 lbs.) - Life Span 5-8 yearsįrontload Washers (18 lbs. If you aren't sure what the life of your equipment is, here are some benchmarks for you to consider: Bottom line sell your Laundromat when the equipment is still in good shape. On top of that, if your equipment is getting worn down it may not be operating as best as it could and this could turn customers away causing your sales to dip. If a potential buyer sees that the equipment is old, needs repairs and will likely need to be replaced, they may walk away from the opportunity or present you with a low offer to compensate for the investment they will need to make. The condition of a Laundromats' equipment is the biggest factor in the due diligence process of selling this type of business. Ideally, you want to sell your business when sales are steady and your equipment is in good shape. With a popular business model, you need to be strategic about when you sell your laundromat so you don't get taken to the cleaners by a buyer and so that you maximize your profits.ĭeciding to sell your Laundromat at the right time is critical in getting the upper hand in the sales process. Laundromats and coin operated laundromats are popular choices among business buyers as they often have minimal payroll expenses and can be successfully run as an absentee run business.Īdditionally, Laundromats usually have predictable sales and cash flow making it an easy business to run.
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