When the time comes to sell your laundromat there are many things to consider. Coin-ops have become a popular choice for those who are looking to diversify their business portfolio because they require little in the way of actual management - making them perfect absentee businesses - and they have minimal payroll expenses.
Laundromats typically have excellent cash flow and are easy to run. Choosing the opportune time to sell your coin-op is important and the experts at T & L have created a list of things for you to consider before you hang up that "For Sale" sign. If you're in need of affordable laundry equipment SC dealers, call the experts at T & L for big savings and financing.
Tips To Maximize Selling Your Laundromat
The biggest factor that any buyer will consider when looking at your coin-op is the age of the existing equipment. If your equipment is old, broken or needs to be replaced prepare to receive offers that are on the lower end of the scale or none at all. In a business where the majority of the cash flow is derived from the equipment buyers will hold this in consideration first and foremost. Taking the time to get all of your existing equipment serviced before you put your laundromat on the market helps you get show ready and may increase the offering price from buyers but the best thing to do is to sell your laundromat when the equipment is still in good shape.
Consider the following timeline for equipment age when you are considering selling your facility:
- Dryers: 15 - 20 years
- Front Load Washers, Heating Systems and Coin Changers: 10 - 15 years
- Top Load Washers: 5 - 8 years
Be prepared to show installation paperwork and maintenance documents for your equipment. Diligent buyers will want to see that you took care of the machines they are preparing to buy. Ensure that if any of your equipment is still under warranty you can show potential buyers how much of that warranty is still valid.
Be prepared to discuss every aspect of your business - from the location, to the crime rate, to the amount of your monthly utility bills. Think back to when you first established your business, chances are you had many of these same questions. Buyers are going to want to understand the complete picture of your business. Be honest with potential buyers about things like crime in the area - they can pull crime reports and any deception on your part can make them wary of negotiations with you. Create an easy to understand chart of your utility expenses and be able to explain any dramatic increases in your utility usage. Were you extremely busy during the summer months? Did you experience an unexpected pipe break in the winter? Make sure that you are able to speak about who your competition is - including new laundromats opening near by.
Setting the price for your property can be tricky. Utilizing a commercial real estate agent or broker can be helpful in not only setting a price but managing the showing of the property and answering buyers' questions. As a rule of thumb pricing is typically 1 to 1.5 times the gross annual sales of the business however the age and condition of the equipment and the location do play a role in determining the asking price, as well. An experienced real estate professional will be able to assist you in determining these things for your location.
The trend in the coin-op industry is to sell properties when the equipment is nearing the end of its lifecycle. Choosing to sell while your equipment is still in good condition not only makes you more attractive to buyers but more likely to attract ones that are highly motivated and ready to buy. It is recommended that you decide to sell when your equipment still has more than 6 years worth of use in it.
Be sure to check out part two on this series for even more great tips.
Expert Laundry Equipment SC Dealers At T & L Laundry Equipment
If you’re thinking of buying a laundry facility? Want affordable help with installation and purchasing laundry equipment SC services? Look no further! We have 40 years of experience helping people with their commercial laundry equipment SC needs. We can help you make the right decision in choosing commercial washers and dryers for your laundromat. Call us to day to get started!