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I'm selling my laundromat and want to know what's the best way to maximize my listing price.

What are the steps in ensuring a successful transaction? How do I get my listing price?

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Answers (6)
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Its been 2 years since this posting. Just curious, did you sell your laundromat and were you happy or satisfied with the outcome.

Jul 15, 2011
Satish Patel
Sunbelt Business Advisors
Middlesex County, MA
Premium Broker

Please contact me at 617-945-5338 or Mandoni@sunbeltne.com.

M Mariola Andoni, CBI
Sunbelt Business Sales & Acquisitions
www.sunbeltne.com

Jan 8, 2010
Julie A. Barnes, CPA
Small Business Exchange, Inc.
Travis County, TX

Hello Jennifer,

If your income tax returns do not accurately reflect income (read: cash not reported), you may be able to extrapolate from activity drivers - such as water and utility bills. Another strategy is to have a buyer observe traffic at your laundromat - although this will not usually account for seasonal differences.

To read more about these methods, please visit:
http://austinbusinessesforsaleblog.com/accounting/just-the-cash-mam.

Good Luck!
Julie A. Barnes, CPA
President, SBX, Inc.

Jan 1, 2010
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j n

List the business in the paper and/or with a broker to see what offers you get...you do NOT have to accept any of the offers but you will definitely get feedback from potential laundromat owners as to what your business is worth to them.

I use net X 3 for my laundry sales...of course you had better be able to prove what NET really is. This is how laundry owners may have screwed themselves...if you haven't been reporting all of your income you can't prove what the business is really netting. Brokers have a book....I forget the title of it that give rules of thumb for sales prices of each business. Any quality broker has this book and carries it around like a bible. Word of warning...my broker told me he'd list at a rediculously low price. My jaw dropped and I said "No way" We listed for net x 3 and negotiated a little from there. His book had 2 recommendations and he wanted to ignore them.

Also, Consider selling with 10 percent owner finance (that's 10 percent of the total sale price...they find another lender for 90 percent and you are the lender for 10 percent of the sale price). I know you may want to be rid of the business but this is a way to get the business back if the new owners walk out on it. I know a guy who has sold the same laundromat 4 times. Make sure you get first right if there should be a default, not the other lender. Jo

Jan 1, 2010
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Jennifer -

You are focusing in the wrong place....listing price is just that... a listing price. What you should be focusing on is how much money you walk away with in your pocket. You may be better off with a lower listing price that attracts buyers, driving for good terms instead of a good sticker price, or structure the deal differently in a way that dramatically reduces the tax you will pay.

The best thing you can do is find a great broker. The right broker will market the business properly, structure the deal right, and focus on how much money you take home, not the listing price.

-Jeff-

Dec 9, 2009
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The BAF Group LLC
MD

If you are claiming all of your earnings, your Tax Returns will do that for you. If you are not claiming all of your earnings, you have a choice: Either claim your earnings in the next two years and put the business up for sale at that time; or, finance the deal for yourself to an experienced laundromat operator, who will see the value without asking for too much documentation.

Dec 9, 2009

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