Throughout the United States, you'll find neighborhoods sprinkled with beauty salons, barber shops, grocery stores and laundromats. These business establishments are mainstays of the American experience for millions of children and adults. Some people don't go shopping or head to the park, beach or another fun venue without first stopping by the laundromat and washing several loads of clothes.
As an entrepreneur who has owned and managed a laundromat for several years, it can be hard to even contemplate selling your laundromat. It's easy to understand your struggle, especially if you have gotten to know your customers, some of whom you might have come to know on a first name basis. This struggle can cause your emotions to rise.
One business owner shared that selling your laundromat or another company can cause your emotions to the point where you start weeping. If you're not careful, you could also start yelling at buyers you're working out a deal with. Preparation, knowledge and support are key factors that make the sell process easier.
Points Transworld Business Advisors and other business brokers will continue to advise you on the sale as you start the process of selling your laundromat may vary, regardless of the type of laundromat you own. Elements of the sell may be different if you own a commercial grade or a coin-operated self-service laundromat.
"Coin laundries generally occupy the retail space on long-term leases (10-25 years) and generate steady cash flow over the life of the lease. Coin laundries are unique small businesses in that they have no inventory or receivables," according to the Coin Laundry Association. Commercial grade laundromats are used by large establishments like hotels, hospitals and colleges and universities.
Value of a coin-operated self-service laundromat ranges from $50,000 to $1 million. How much money your business is worth is one of the points advisors will cover with you. The best time to sell, the specific assets to include in the deal, what should go into the non-compete covenant and the terms of draft and final sell agreements are other deliverables brokers complete for you.
Other points that advisors will discuss with you include how much authority to give brokers or attorney in order to make management decisions, which rights you will retain and whether or not you will receive a one-time payment or ongoing payments post the sell. When selling your laundromat, it's also advisable to meet with business brokers to weighs the pros and cons of transferring ownership, especially if you'd like to keep your business in your family.
It's these considerations and factors that will influence your overall sales agreement. For example, if you own a string of laundromats that are linked to one or more publicly owned firms, you'll include information about stocks and assets you have that are related to or, in some way, connected to the laundromat.
Miss one of these points and your deal might go wrong. Before working with brokerage advisors, make sure that they have enough experience selling laundromats to spot pitfalls at a glance. Also, make sure that the advisors have the time to devote to the sale of your particular business.