Asking Price: $725,000 Gross Revenue: $1,065,393Cash Flow: $212,111 (Seller's Discretionary Earnings) EBITDA: Not DisclosedInventory: Not Disclosed FF&E: $340,000 included in asking priceReal Estate: $725,000 not included in asking priceShare this business:
Explanation of Financial Terms
The total asking price of the business for sale.
All income the business received before any cost-of-sales or expenses have been deducted.
Arrived at by "starting with your net (before tax) profit. Then, add back in any payments made to the owner, interest and any depreciation of assets." For example, if the net profit before taxes was $100,000 and the owner was paid $70,000 then the cash flow is $170,000.
Earnings Before Interest, Taxes, Depreciation and Amortization.
The value of the merchandise, raw materials, and finished and unfinished products which have not yet been sold. If there is no inventory price listed then the seller did not provide it.
Furniture, fixtures and equipment that will remain with the business, such as desks, office cubicles, decor elements of a restaurant or showroom, computers and office machines, pots and pans, dishes, display cases, manufacturing equipment, etc., depending on the type of business.
The value of property owned by the business. May be included in the asking price or offered separately. If no real estate value is listed, it was not provided by the seller.
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
Number of Employees:
17 FT/12 PT
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.
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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the seller or a business broker representing the seller. BizQuest has no interest
or stake in the sale of this business and has not verified any of the information
and assumes no responsibility for its accuracy, veracity, or completeness. See our
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