Taking over a dry cleaning business: analysing equipment and contracts
Introduction
A dry cleaning business is a local service that relies on two pillars: a fleet of high-performance machines and recurring client contracts. Taking over this type of business may seem accessible, but the risks are real if the preliminary analysis is insufficient.
Equipment often represents 40 to 60% of the acquisition value. A professional dry cleaning machine costs between 15,000 and 40,000 CHF. If the equipment is outdated or poorly maintained, you will need to invest quickly to maintain service quality. Conversely, a recent and well-maintained fleet reduces the risk of breakdowns and improves profitability.
Existing contracts constitute the second key element. A dry cleaning business that depends on one or two large clients (hotels, restaurants, companies) presents a high concentration risk. The recurrence and diversity of the portfolio are essential indicators of stability.
This guide details the technical and contractual points to verify before taking over a dry cleaning business. You will find a structured method to assess risks and secure your investment.
📌 Summary (TL;DR)
Taking over a dry cleaning business requires analysing the condition of equipment (cleaning machines, presses, dryers) and evaluating replacement and maintenance costs. Client and supplier contracts must be verified to guarantee revenue recurrence. Environmental compliance, human resources and technical expertise are specific points of vigilance for the sector. Support from experts can secure the takeover.
📚 Table of contents
Analysing the condition of dry cleaning equipment
Equipment represents the main asset of a dry cleaning business. Its condition determines immediate profitability and future investment requirements. Outdated equipment can lead to frequent breakdowns, reduced productivity and unexpected replacement costs.
Request the complete maintenance history and repair invoices for the past three years. Have the machines inspected by a specialised technician before finalising the takeover. This approach is similar to analysing machinery when taking over a printing company.
Essential machines to inspect
Focus your inspection on critical equipment:
- Professional washing machines: lifespan 10-15 years, reference brands (Miele, Electrolux)
- Presses and ironing tables: check the condition of heating plates and hydraulic systems
- Steam generators: essential for ironing quality, expensive to replace
- Finishing tunnels: for high-volume dry cleaning businesses
Note the age of each machine and compare it to its typical lifespan.
Replacement and maintenance costs
Replacing a professional washing machine costs between 15,000 and 25,000 CHF. A quality press ranges from 8,000 to 15,000 CHF. An industrial steam generator can reach 30,000 to 80,000 CHF depending on capacity.
Budget 3 to 5% of annual turnover for preventive maintenance. Review recent maintenance invoices to identify problematic machines. These costs directly impact the valuation of the business you are taking over.
Evaluating existing contracts
Contracts determine revenue stability and predictability. A dry cleaning business depends heavily on its recurring clientele, particularly professional contracts with hotels, restaurants and companies.
Analyse the remaining duration of contracts, termination conditions and especially their transferability. Some contracts include clauses that allow the client to terminate in the event of a change of ownership. Identify these risks before the takeover to anticipate a potential drop in turnover.
Client contracts and recurrence
B2B contracts generate stable and predictable revenue. Favour dry cleaning businesses with a solid base of professional clients: hotels, restaurants, medical practices, companies.
Verify the average contract duration (ideally 1-3 years), monthly volumes and margins practised. Request the contract renewal rate. Examine transferability clauses, as with evaluating IT maintenance contracts.
Supplier and premises contracts
The commercial lease is a critical element. Verify the remaining duration, conditions for transfer to the buyer and the rent amount compared to the local market. A short-term or non-transferable lease represents a major risk.
Analyse contracts with chemical and consumable suppliers: payment terms, negotiated prices, commitment duration. Also verify preventive maintenance contracts for equipment and their transferability to the new owner.
Specific points of vigilance for the sector
The dry cleaning sector has regulatory and operational particularities often underestimated during a takeover. Environmental compliance and staff quality are determining factors for long-term viability.
These elements can generate significant unforeseen costs if you do not identify them beforehand. Thorough due diligence on these aspects protects your investment and avoids unpleasant surprises after the takeover.
Environmental compliance and standards
Switzerland imposes strict regulations on the use of solvents and chemical products. Verify that the dry cleaning business has all necessary authorisations and complies with cantonal standards in force.
Compliance costs can reach several tens of thousands of francs. The shift towards ecological solutions (dry cleaning without perchloroethylene) requires additional investments but responds to growing demand from Swiss clientele.
Human resources and expertise
Qualified pressers are rare in the Swiss market. The quality of existing staff represents a major asset. Analyse employment contracts, salaries practised and employee seniority.
The risk of departure during the takeover is real. Negotiate a transition period with the seller to ensure the transfer of expertise and maintain the relationship with clients. This issue is similar to that encountered when taking over a plumbing business.
Getting support for the takeover
Taking over a dry cleaning business requires thorough technical and legal analysis. Get support from specialised experts: industrial equipment technicians, lawyers for contract analysis, fiduciaries for financial audit.
Leez provides you with a network of qualified experts to support you in your due diligence. Browse the dry cleaning businesses available for takeover on our platform to identify qualified opportunities.
Taking over a dry cleaning business requires rigorous analysis of equipment and contracts. The condition of professional machinery (presses, washers, dryers) largely determines the viability of your investment. Replacement costs can be high, and regular maintenance is essential to ensure business continuity.
Existing contracts constitute the second pillar of your evaluation. Recurring client contracts, commercial leases, supplier agreements and employment contracts must be examined carefully. Environmental compliance and health standards also represent major points of vigilance in this regulated sector.
The technical expertise of staff and the quality of customer service are intangible but essential assets to preserve during the transfer. If you are considering taking over a dry cleaning business, browse the businesses available on Leez and do not hesitate to contact our expert partners to secure your acquisition.
