Opportunities
Self and Full-Service Laundry: Out of State Absentee Owner
Manager in place and wanting to stay!
Specifications
Strategically located in Williston, ND, which is a temporary home for over 100,000 laborers who migrate to the region for work in the agriculture, fields, and energy industries, and reside in temporary homes who need the access to do laundry. This 3,600 sq ft facility offers self-service laundry, shower facilities and drop-off services where employees will wash, dry and fold laundry for the customer. The owner lives out of state and only visits a few times a year. The business has 1 general manager along with 4-5 laundry techs. This spacious laundromat was established in 2012 and competition in the area is very low. The pay-per-load machines utilize a card service as opposed to cash and coin which is much more secure and safe, especially for the outof-state owner. Included in the purchase price is over $474,000 in hard assets. An SBA lender has pre-approved this deal structure. North Dakota is ranked 2nd, after Texas, as the highest oil producing state. Due to this fact, many oil companies will send swathes of contractors to this area and this business is noted as a preferred laundromat for their employees. Priced at $769,000, a 15% down payment of $115,350 returns $108,294 in the first year after debt payments! Plus, the owner is offering a 10% promissory note and 6 months of training, as a sign of good faith. This activity has brought the business to a 41% profit margin. A new owner could boost revenue by offering starching and dry-cleaning services or by offering pick up services in the area and nearby towns.
Business Highlights
- Year Established: 2012
- Location: Watford City, North Dakota
- Service Area: North Dakota
- Services: Self-Service Laundry, Drop-off Laundry, Tanning, Showers
- Building: 3600 Sq. Foot Facility
- Reason for Selling: Strategic Exit
- Personnel: 1 Full-Time Manager, 4-5 Laundry Techs
- Seller Training Period: Negotiable
- Growth Opportunities: Expand Starching/Dry Cleaning Services
- Current Owner’s Responsibilities: Minimal Oversight, lives in another state.
Clients
- Local Residents
- Out of Town Contract Workers
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
Services
- Self-Service Laundry Machines
- Drop-Off Laundry Service
- Tanning Booth
- In-House Showers
Personnel
- 1 Absentee Owner
- 1 Full-Time Manager
- Manages the day-to-day-operations and facilities
- 4-5 Laundry Techs
- Responsible for the drop-off laundry services
Growth Opportunities
- Starch/Dry Cleaning
- The nearest facility for starching is about a 40-minute drive away, and a lot of contract workers require a starched shirt.
- Mailboxes
- Used to house mailboxes for USPS, still owns the boxes could bring that back in as an additional service
Funding Details
Business:
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
Loan Payments
| Monthly Payment to Bank: | $ |
| Yearly Payment to Bank: | $ |
| Monthly Payment to Seller: | $ |
| Yearly Payment to Seller: | $ |
| Total Monthly Debt Service: | $ |
| Total Yearly Debt Service: | $ |
Conclusions
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
|
Cash Flow: 2023 Cash Flow |
$ |
| Annual Debt Service: | $ |
| RATIO: |
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
|
Cash Flow: 2023 Cash Flow |
$ |
| Annual Debt Service: | -$ |
| NOI: |
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
| Down Payment: | $ |
| NOI: | |
| ROI: | % |
Attachments
| Document Title / Description |
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