Learn to Adjust the Income Stated on Laundromat Sales Information Sheets
If you’re having trouble selling your Laundromat through an agent or broker, a part of your problem might be the inadequate information being provided on the initial income and expense statement (sales information sheet) provided to a potential buyer. When a potential buyer discovers that the information on the information sheet doesn’t match reasonableness, reality or actuality, a good customer is often driven away from your Laundromat. Providing the actual information is important to achieve a sale of your Laundromat.
A second major problem is your agent refusing to provide even the minimum information about a location unless a “non-disclosure agreement” has been signed by a potential buyer. Why? Have you directed your agent to require this document? The reality is that most of these non-disclosures actually do more to protect the commission of the sales person and not the privacy of the Laundromat owner. What real “secrets” do you have that cannot be disclosed to interested parties? Either way, understand that having to sign a non-disclosure agreement is often a discouragement to potential buyers. ?
When potential buyers are looking to buy a Laundromat business, they want to carefully consider the income and expense sheet provided to reflect what will be their costs and actual expenses. Here are some common areas where their costs may be higher and should be provided to your potential buyers:
Insurance:? you may be insuring your business for less than what you are trying to sell your business to a new buyer. As a new owner they will not be receiving an experience or loss free discount on their insurance policy and their purchase price at a higher level will mean higher insurance costs.
Repair Labor:? many owners are experienced and skillful repair people, but as a new owner they will probably have to hire repair people. The costs can vary depending on the brand and age of the equipment.
Repair Parts:? you may purchase rebuilt parts or have parts in stock that you use to keep your equipment operating. Water heating systems, swamp coolers, bill changers, vending machines, restroom or minor vandalism issues should be included under another line calculation or included as an estimate in the repair part category. A parts cost should be calculated at a minimum of $500.00 per month for any equipment over 10 years old.?
Cleaning Labor:? this expense must be carefully reviewed. Are your employees being properly identified and legally compensated? The era of under the table payments to workers is gone. This is the most common underreported item on most expense items provided to buyers.
Cleaning Supplies, Toilet Lock Rentals, Alarm, Internet and Video, Trash Pickup, Accounting, Personal Property Tax, Advertising and Miscellaneous Items are often left off of expenses.
If you want a successful and rapid sale, you must be willing to provide ready access to all the information a potential buyer will require including access to a full copy of your lease agreement. Delays in information often lead to cancellations in escrow. To ensure a prompt sale, be prepared with information, fairly price your store and regularly review the efforts and information provided by your broker or agent.