Updated: How Much Is Your Florida Dry Cleaning Business Worth?

How Much Is Your Florida Dry Cleaning Business Worth?

A question on the top of every business owner’s mind is, “how much is my business worth?”

I researched dry cleaners, both with plants and those that are drop stores. While cash flow is the primary evaluation criteria for prospective buyers, location, and services offered are also keys.  Here are some numbers for you to ponder:

I researched businesses sold in the last four years by Business Broker of Florida Association members. First are the results for dry cleaners with sales revenue between $90k and $765k. Yes that wide range will skew the results. There were 166 businesses sold and 141 with this sales revenue range.

·         166 = the number of dry cleaners sold in the last four year by the Business Broker of Florida Association members with the revenue range cited above.

·         $327,216 = the average revenue of the 141 sold dry cleaners.

·         $238,168 = the average sold price of the 141 sold dry cleaners.

·         $108,677 = the average owner benefit generated in each sold dry cleaners.

·         0.343 = the revenue multiple (sold price divided by revenue) of the 141 dry cleaners businesses.

·         2.24 = the owner benefit multiple (sold price divided by owner benefit) of the 141 sold dry cleaners.

·         74.6% = the average percentage down payment of the 141 sold dry cleaners.

·         229 = the average number of days on the market of the 141 sold dry cleaners.

Ok, what about drop stores. Once again the sales revenue range is wide for those sold over the last four years ($50k to 640k). So your particular business needs to be analyzed to ensure I deliver more accurate results based on your sale revenue.

·         31 = the number of drop stores sold in the last four year by the Business Broker of Florida Association members with the revenue range cited above.

·         $189,254 = the average revenue of the 31 drop stores.

·         $111,068 = the average sold price of the 31 sold drop stores.

·         $67,329 = the average owner benefit generated in each sold drop stores.

·         0.563 = the revenue multiple (sold price divided by revenue) of the 31 sold drop stores.

·         10.24 = the owner benefit multiple (sold price divided by owner benefit) of the 31 sold drop stores.

·         80% = the average percentage down payment of the 31 sold drop stores.

·         137 = the average number of days on the market of the 31 sold drop stores.

What does this mean?

Dry Cleaning businesses are in high demand. And, in spite of a more conservative and cash strapped buying clientele, they are still paying near historical multiples with a percent down not realized in many other industries. If you have been contemplating selling your cleaners business, now is a great time! Please contact me for a no obligation discussion.

For a complimentary consultation:
Contact Cecil Williams (cecil@bizbrokerflorida.com) or call  at 888-925-5055 ext.206.  Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com  Also, visit our Florida Business Exchange website at www.fbxbrokers.com