Business Summary:
THE COMPANY
The company is one of the community’s oldest and most respected dry cleaning businesses servicing a market area hub of over 250,000 population. The business has operated continuously since 1987 from a prime corner location on the main connecting road that has seen explosive growth in the last decade. The assets have been updated in 2004 including the Colombia Hydro Carbon Dry Cleaning machine and Point of Sale touch screen register. This company has continued to hold their sales at $325,000 and should post a 10% increase for this year. The drive-thru window, traffic-controlled corner and 60,000+ cars that pass by daily make this one of the most visual and easy to assess cleaners in the market.
THE LOCATION
The community has been featured nationally “Number 1 for Growth”. The company has a satellite site 30 miles to the south but the primary location provides the meat and potatoes for the business. The 2,600 square foot lease is $3,000 per month which includes the triple net costs and is built to accommodate the production of the business with boilers, steam lines, separate curtain area and separation of work areas for the employees. Southeast Idaho is the recreation capital for the Western United States without the high cost of living associated with tourist communities. The community is very self sufficient and is now providing product and services to the surrounding area increasing the customer base.
THE CUSTOMER
Repeat customers are the core strength for the business. Advertising consists of a small Yellow Page ad. Sales have been very steady and the owner realizes an adjusted income of $75,000 to $95,000 per year working passively. The owner has not marketed his business to area hotels, restaurants, or established a pick up route. The company continues to have a very solid working relationship with one of the areas larger restoration companies. Repeat and word of mouth customers who rely on the consistent product quality and professional service has been the core strength of the company.
THE REASON FOR SELLING
The company has met the owner’s purchase expectations. The business has operated with passive management and trained employees allowing the owner the flexibility to maintain a sold income and recreate. The owner now wants to retire and have the ability to travel and visit family at will. The owner is motivated to sell and has a detailed financial history for approved buyers.
THE IDEAL BUYER
The owner bought the dry cleaning business without a background in the business. The owner has staffed the business with trained and skilled employees. The owner is passive in the business and does not participate in the process of operation. An owner/operator or a husband-wife team who are familiar with the industry and business could easily reforecast current salary that averages 35% to gross sales back as direct replacement income. Marketing in the area would certainly provide an increase in gross sales. The current owner has been satisfied with the stability of sales and profits and has not wanted to get out and promote his services. The company has the assets and operation space to grow with additional working capital.
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