Laundry & Dry Cleaning

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Asking Price:
$725,000

Gross Revenue:
$1,065,393
Cash Flow:
$212,111
(Seller's Discretionary Earnings)

EBITDA:
 Not Disclosed
Inventory:
 Not Disclosed

FF&E:
$340,000
included in asking price

Real Estate:
$725,000
not included in asking price

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Business Description

This regional chain provides laundry/dry cleaning services through multiple retail service locations. The Company also provides wholesale laundry/dry cleaning to two service locations not owned or operated by the Company. In addition, the Company has an agreement to supply laundry/dry cleaning services to a large commercial account. Company vehicles pick up laundry from the service locations, deliver it to the dedicated Company-owned plant where the cleaning work is performed after which it is returned to the service locations. It should be noted for environmental concerns that the Company's "dry cleaning" process utilizes organic petroleum-based hydrocarbon cleaning solvents NOT perchloroethelene ("perc" or PCE) solvents which have been shown to be a contaminant.

About the Business

Year Established:
1999
Number of Employees:
17 FT/12 PT
Real Estate:
Owned
Facilities:
The heart and hub of the Company is the centralized plant. The modern 7,700 square foot plant sits on a one acre site in an industrial park. The Company utilizes current technology to quickly and efficiently perform cleaning services for each account. This type of operation allows the Company to achieve economies of scale which provide a distinct competitive advantage in the markets they serve. The owners own the plant Real Estate and one retail service center. These two properties are leased to the Company by the owners and are not included in the sale price. The Company owns one service center and leases four others. The owner anticipates no difficulty in renewing and extending leases at current rates for the occupied leased property. There is approximately $50,000 of the $119,000 allocated to rent expense to cover the purchase price of the $725,000 Real Estate.
Market Outlook/
Competition:
The Company enjoys a commanding presence in it's largest market, outnumbering competitors three to one. In other locations, the Company is the sole provider of laundry/dry cleaning service. The hub/spoke operation model provides economies of scale reducing per unit cost, thus the Company is the low-cost market leader.
Growth & Expansion:
Since the cleaning plant is not operating at peak capacity there is opportunity for growth by adding new accounts or service locations while utilizing the excess capacity of the existing equipment and labor force. With additional capital expenditures, for example, another dry cleaning machine, plant capacity would be increased significantly. The owners have planned for this type of expansion and have allocated space in the plant for additional equipment. Additional opportunities exist in area communities which are not served or are under-served with regard to laundry/dry cleaning services.
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About the Sale

Reason For Selling:
Owners are ready to retire.
Training/Support:
Will train for 4 weeks @ $0 cost.
Some knowledge of laundry/dry cleaning equipment would be helpful but not necessary since maintenance of the equipment can be outsourced.

Listing Info

ID:
1499979
Ad Detail Views:
573

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Business Listed by

Scott Belden

Murphy Business & Financial Corporation

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Source: American Community Survey (2010-2014), United States Census Bureau.

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