Whether you are looking to sell your laundromat and retire or simply trying to establish the value of your coin-op, knowing how much your business is worth is essential. The industry standard to determine how much you can sell your laundromat for is three to five times the annual profit of your business. While multiple factors play into that price, starting with that as a base number can help you have a rough idea of what your business is worth. What factors determine the worth? Let's take a closer look! If you need a new vended washer or commercial dryer in Charleston, SC, call the professional staff at T & L. We can help you save money and time.
Condition and Age of Equipment
If the equipment in your facility is old and heavily used, its value is considerably less and that can have a negative impact on the value of your business. Newer equipment improves the value of your business and adds additional benefits that may be attractive to buyers of your laundromat like lower utility costs, decreased maintenance fees, and higher vend prices.
Length of Lease
Stores that have a short term left on their lease are worth considerably less than those whose lease has a significant amount of time remaining. Once the contract is up, the interior of the laundromat will need to be returned to its pre-installation state. Estimates for the concrete slab, wiring, and plumbing can cost owners up to two years of profit to remove.
Future Expenses
There are always additional expenses that arise throughout the year. Planning ahead for these expenses can help you keep these unexpected business costs in check. Enrolling in a planned maintenance program can help protect your budget from unexpected repair costs and keep your risk of machine failure to a minimum. Building repairs and improvements should be considered as well.
There are other ways that you can value your business. One way is through determining the replacement value of your business. Determining your business value in this way relies on cost estimates of what it would cost to rebuild your entire store from scratch. The other way is to determine the salvage value of your business, relying on the value of the used equipment in your store to dictate the worth of your business.
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When it comes time to sell your laundromat, knowing which number will bring you the highest amount of profit and allow you to sell your business in the most reasonable amount of time is critical. T & L Laundry Equipment has helped thousands of coin-op owners buy and sell their laundromats throughout their 40 years in business. Whether you need to invest in new equipment to make your property more attractive to buyers or you're looking to unload used equipment from a laundromat you just purchased, let our staff help you get exactly what you need. We proudly offer in-house financing and complimentary site visits. Our experience can help you make over a dud into one of the most popular laundromats in town.
Call or stop by today and let our staff of commercial laundry professionals help your business flourish in 2018! Join us for our next post in this series when we examine the five numbers you need to know when it comes to evaluating a laundromat.
