Coin laundromats typically make very good investments and are highly sought after by many buyers. Typically, coin laundromats can be run relatively absentee, provide highly stable sources of income, and provides a very important needed service for its customers. Nobody wants to use a laundromat but many must because they lack their own washer and dryer. So let’s explore what owners of laundromats need to do before selling.
First, sellers of coin laundromats should spend some time thinking about what sort of financial documents they are able or willing to give a prospective buyer. Five Star Business Brokers of South Florida has been involved in many laundromat deals where the tax returns or even bank statements do not reflect the economic reality of the laundromat. In order to get the best price possible, owners of coin laundromats should report as much of the ‘cash’ income as possible and have the income reflected in their financials documents. This way, buyers will be able to more easily evaluate the actual income of the business. It is true that utility bills (particularly the water bill) may also show a savvy buyer what income the laundromat generates, but it is far better to also have financials which show the actual sales and income.
Another way that sellers can increase the value of their coin laundromats is simply cleaning up the facility so that it ‘shows’ better to a buyer. Many buyers ask Martin at Five Star Business Brokers of Palm Beach County about purchasing coin laundromats, but they specify that they do not want a ‘dump.’ Unfortunately, many owners of coin laundromats (especially absentee owners) do not put in the requisite time and expenditures necessary to refurbish and clean the facility. Dirty bathrooms, unclean floors, non-functioning A/C units, and a dilapidated exterior all give buyers a very poor impression. At minimum, such buyers will demand a price concession in order to account for the poor state of the facility, or they will simply not want to make an offer at all.
Finally, sellers of laundromats can maximize their selling price by ensuring that all of the washers and dryers are in good working order. Five Star Business Brokers of South Florida gives every prospective buyer of a coin laundromat an ‘asset list’ of the washers and dryers included in the sale. When a buyer subsequently inspects the facility, they will invariable check to see if the list they are given matches what is actually in the facility. Many buyers will base their offer on the condition of the machines and how many are actually functioning. It is far less expensive to make the repairs before the selling process begins rather than accept a price concession due to non-functioning machines.
Give Martin at Five Star Business Brokers of Palm Beach County a call today for a free evaluation for your coin laundromat, drop-off store, or dry cleaning plant.
Located in Palm Beach County, Florida, Five Star Business Brokers proudly transacts business sales throughout the areas of West Palm Beach, Lake Worth, Palm Beach Gardens, Boca Raton, Jupiter, Delray Beach, Boynton Beach, Wellington, Palm Beach, Royal Palm Beach, and Riviera Beach.