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When selling a laundromat, be prepared with the information that buyers will need to make an educated offer on your business. The categories of information you will need to present to buyers are income numbers, expense numbers, and laundromat details. Having this information available will speed up the selling process, give confidence to potential buyers, and yield the highest value for your laundromat.
The Value of Documentation
Having solid documentation makes your laundromat more valuable. When you can show detailed collection sheets, the collection sheets match the profit & loss statements (P&L), and the P&L correlates with your bank deposit statements and taxes, your business is more "financeable." Any asset that can be financed will be more valuable and command a higher price.
Utilizing a software solution like Cents can help you keep great records and ensure your laundromat is "financeable."
Documents to Gather:
1. Income numbers
When you or your agent lists a laundromat for sale, they will usually take the gross yearly income and divide it by 12 to determine an average monthly income. You'll therefore need your income numbers, usually from at least the last 2 years.
Once a formal agreement is reached, the buyer will want to see more detailed numbers so that they can verify your numbers during the due diligence phase. This will include a monthly breakdown of income and from which sources the income is attained. Collection sheets (if you're selling a coin or hybrid store) will also be requested at this point in the transaction.
2. Expense numbers
Similar to the income numbers, buyers will only require an average monthly expense amount initially and a more detailed expense breakdown when the agreement is formalized. To prepare for this, you should gather 2 years' worth of utility bills (download pdfs from the utility company websites), the lease and all amendments and addendums, and any other documents that you can provide to verify expense amounts.
3. Laundromat details
Buyers will also need certain details to be able to determine the value of your laundromat. Again, they will need general information before an offer is agreed upon and more specific information after an offer is agreed upon.
The main pieces of information you'll need to provide a potential buyer before there is any commitment are the equipment age, the monthly lease amount, and the number of years left on the lease.
The Golden Rule
When preparing to sell your laundromat, put yourself in a buyer's position and provide everything you would want to determine the value of a laundromat. This will not only ensure a smooth transaction but will also provide you with the most value for your business.
And, of course, when you or your agent are ready to list your laundromat, be sure to list it for free on Laundromat Marketplace! Get your listing exposed to thousands of people searching for their next laundromat to buy, all for free!
Book a free demo to see how Cents can help you grow your laundry business and better streamline your overall processes.
