What costs come with selling a dry cleaner?

Selling a dry cleaner costs more than the usual advisers’ fees, because the business sits on a plant that buyers and lenders look at closely. Most of these costs are not hidden. They surface late because nobody listed them at the start. If you write them down before you go to market, you can decide which ones you will carry, which you will ask the buyer to carry, and which you can clear in advance.

The site and the solvent machines

A buyer or its lender may ask for an environmental site assessment. Ask early whether one is expected and who pays for it. Solvent machines are the other large item. Servicing them before showings, or removing one the buyer does not want, is a real expense. Our page on environmental checks explains what a buyer is likely to ask for. Your lawyer can tell you who is responsible for what.

Uncollected garments and customer accounts

Many dry cleaners have garments that were never picked up. Decide how you will deal with them before closing, and keep a record of what you did. Tell the buyer how pre-paid or account customers will be handled, because a buyer will not want to inherit a promise nobody wrote down.

Equipment leases and the premises lease

If any presses, conveyors or machines are leased or financed, ask each lender or lessor whether the agreement can be transferred or must be paid out, and get the payout amount in writing. Check the premises lease for whether the landlord must consent to an assignment and whether fees apply; your lawyer can confirm. The more of this you settle before an offer arrives, the fewer surprises there are at closing.

Costs to list before you go to market

• Site assessment, if one is likely to be asked for
• Servicing or removing solvent machines
• Payout or transfer of each equipment lease
• Landlord consent and related legal work
• Clearing or documenting uncollected garments