Due to increased disposable income and rising competition, the laundromat industry’s revenues have decreased at an annualized rate of 0.1% over the last five years. Projections indicate the industry will continue to decline over the next several years, making it increasingly difficult to exit the industry successfully. If you’re preparing to sell a laundromat, you must think creatively about how to maximize the value of your business. To get started, consider the following five questions.
When preparing to sell a laundromat business, ask yourself the following five questions to land a profitable deal.
Before you can begin to sell a laundromat, you must have an exit strategy in place. A basic exit strategy answers all of the following questions:
If you’re having trouble answering these questions, consider working with a lawyer, advisor or business broker to formulate a sound, actionable plan.
Next, consider who will buy your card or coin-operated laundry business. Common business successors in the laundromat industry include:
Weigh your options and be sure to consider which successor will be most beneficial to you, your employees, your family, and the business.
As disposable income increases, more people are investing in at-home washing machines, as well as using laundry services and dry cleaners. As a result, the laundromat industry’s customer base is dwindling, and annual revenues are decreasing.
To attract a buyer, you must prove that your revenues are steady, even as the industry struggles. Revenue-generating business enhancements to consider include:
One of the most important steps when preparing your laundromat for sale is valuing the business. Because business owners often have an emotional attachment to their businesses, it’s best to hire a third party to perform a valuation. Equipped with a professional valuation or a brokers opinion of value (BOV), you’ll be able to select and defend an asking price.
From listing the laundromat for sale and marketing the listing to pre-qualifying potential buyers and negotiating a deal, selling a laundry business takes a considerable amount of time and effort. Many laundromat owners find it difficult to operate their businesses while trying to navigate a sale.
To help alleviate the stress associated with selling a laundromat, consider enlisting the help of a business intermediary. A business intermediary, or business broker, has the market knowledge and expertise to help you navigate the sales process. To learn more about working with a professional to sell a laundromat, contact your nearest Sunbelt Business Brokers office. Founded in 1978, Sunbelt is an international network of business brokers dedicated to helping business owners, like you, close a deal!