How to Buy a Dry Cleaning Business

Last Updated: September 16, 2021

The Bureau of Labor Statistics expects the dry cleaning business to grow by at least 3 percent by 2018.^{[citation needed]} The industry is expected to gross approximately $2.3 billion annually in the United Stages.^{[citation needed]} It is a growing service industry, and more dry cleaning companies are showing up in cities and towns all over the United States. If you are interested in owning and operating a dry cleaning business, you are likely poised to find it is a challenging and rewarding business. Buy a dry cleaning business by finding a successful business and location with an owner who is willing to sell.

Method 1

Method 1 of 3:
Finding a Dry Cleaning Business To Buy

1
Conduct market research. Getting to know the dry cleaning market in the region where you plan to buy will help you decide if you want to buy a local dry cleaning company or a franchise.
- Prove you have a net worth of at least $300,000 and financing if you want to open a franchise. They are often less flexible than an independent owner who will work with you to sell the business.
2
Find a location and a dry cleaning business that fits your vision of how you want to run your business. You might ask current owners if they are willing to sell, or work with a broker who can find sellers for you.
3
Draft a Letter of Intent . This letter will give a written intention of your desire to buy the dry cleaning business and the owner's willingness to sell it to you.
- Include a proposed purchase price in the LOI. This might be negotiated later. It should also disclose any assets or property that will transfer to you in the sale as well as provide a deadline or a window by which the sale must close.
4
Hire a lawyer. Having a lawyer draw up the contract of sale will ensure you are protected during the buying process. A contract lawyer can offer you the best advice in the purchase of a dry cleaning business.
- Refrain from using one lawyer for both parties. No matter how friendly you are with the seller, ensure that each party has its own lawyer.

Method 2

Method 2 of 3:
Making a Formal Offer on a Dry Cleaning Business

1
Appraise the property that the dry cleaning business inhabits. Gather information on property taxes and whether they are up to date. Look for liens against the property and determine where the property boundaries are.
- Negotiate the inclusion of any vehicles. Some dry cleaning businesses pick up and drop off clothing for their customers, so a sale might include vans or trucks that are used for this purpose.
2
Check the condition of the equipment that will transfer with the sale. Look for warranties, and find out which vendors service and repair the equipment in the dry cleaning business.
3
Examine employee records. When you buy a dry cleaning business, you will want to know how many workers are currently employed and what their terms of employment are.
4
Go through financial records. Examine cash flow, debts and insurance payments.
5
Find out what you can about the dry cleaner's reputation. Before you buy, you want to make sure it is a reputable shop that dry cleaning customers and other business owners speak highly of.
6
Negotiate the purchase price if any of your research has turned up unexpected information, such as property liens, outstanding debts or malfunctioning equipment.

Method 3

Method 3 of 3:
Closing the Deal on a Dry Cleaning Business Purchase

1
Make sure your financing is in order. Whether you are financing the purchase with your own funds, bringing in investors, getting a business loan or working with alternative financing methods, the money will need to be in place before you close the deal.
2
Set a closing date. Your lawyer can schedule a date to finalize the sale with the seller's attorney.
3
Pay the seller for the dry cleaning business, either in person or through his or her attorney.
- Obtain the keys and all the necessary permits, locks and other information once the money changes hands.
4
Announce the new ownership of your dry cleaning business and begin making whatever changes you envisioned when you decided to buy it.

Community Q&A

Question

How I can find someone who wants to sell their dry cleaning business?

Community Answer

You will need to post ads, get the news around, search for local dry cleaners and propose your offer to them.