American Laundry Systems

American Laundry Systems - “A Small Company that does BIG Things!”

Clean Cycle Systems

American Dry Corporation

American Dryer Corporation

American Dry Corporation

Tecni Quip - Carts, Shelving & Covers

American Dry Corporation

LaundryTODAY Media Kit

Our 2013 MEDIA KIT is available by clicking
on the image below.
2013 Media Kit
For rate information please contact
Sheryl Weinstein  at 212-644-4344

Subscribe to Laundry Today

Laundry Today - Today's News For Changing Times
Subscribe here to Laundry Today's online edition, print edition or both. It's FREE sign up today!

View a FREE Online Issue

Click here to read recent Issues of LaundryToday.
Click the image to sample an issue of LaundryTODAY

Cashing Out - Your Hidden Business Assets

Your successful laundry company is more than just your most valuable capital asset—it represents the realization of your dream.  Unfortunately, too many exiting/retiring entrepreneurs (as well as their legal, financial and business advisors) leave too much cash behind because they fail to recognize the enormous value hidden within one of their most overlooked and underutilized business assets.

Increasing Competition to Sell
Due to the aging of the baby boomers, we are at the precipice of the largest business transition in history, with millions of entrepreneurs seeking to monetize business equity. Deloitte & Touche recently reported that, “71% of small and mid-sized enterprise owners plan to exit their businesses within the next ten years.”1 Because only 30% of family businesses survive to the second generation and just 15% survive to the third2, most companies are sold, and if a sale isn’t possible, closed. The increasing competition to sell demands innovative asset leveraging strategies to capture optimum value as well as create more cash with which to expedite a sale.
Your Hidden Business Assets
Throughout the business cycle, companies purchase numerous business life insurance policies for risk management, employee benefit and investment purposes. Examples include policies funding buy/sell agreements, key-person policies, split-dollar policies, policies securing business loans, policies funding retirement and employee benefit plans and estate liquidity and equalization policies. Traditionally considered inflexible assets with little liquidity, they have long been viewed as necessary yet unrecoverable expenses.
Today, there is another option. You can use an innovative asset optimization technique—a life settlement—to convert the hidden value in qualified business life insurance contracts to significant immediate cash, providing a much higher return on your investment. 

What is a life settlement?
A life settlement is the sale of a life insurance policy to an institutional investor for a cash payment that is greater than the policy’s cash surrender value. The platform for the life settlement industry was created in 1911 by virtue of Grigsby v. Russell3. In this seminal case, the US Supreme Court declared insurance policies to be personal property and freely assignable, thereby granting a policyholder the right to transfer ownership to others.
With a life settlement, when your no longer needed term or cash value business life policies are sold for the highest quality institutional offer, you receive a lump-sum cash payment which can be used for any purpose, including facilitating the sale of your company for the desired price and on favorable terms.
An Entrepreneurial Tale
Three business partners, ages 66, 68 and 70, were the principals of a successful company. To fund a cross-purchase buy/sell agreement, each partner owned two $3,000,000 term policies (no cash surrender value) on the lives of the other partners. Seeking to sell their firm, these entrepreneurs received no offers that they felt were adequate for achieving their retirement and legacy goals. Unfortunately, their legal, financial and business advisors were unaware of the enormous value hidden within these business term policies, believing that they were worthless due to having -0- cash redemption value.

Instead of lapsing the policies and receiving no return on the premiums they had paid for many years, these three wise men sold their policies to institutional investors in the secondary life insurance market and received cash windfalls of approximately $600,000 each.
By coordinating the sale of their company with the sale of their obsolete buy/sell policies, the owners were able to sell their company quickly at a reduced all-cash price because the life settlement proceeds provided the money they needed to fill the gap between their original selling price and the offers from buyers.

Life Settlement Basics

Although life settlement viability is determined on a case-by-case basis, with all transactions subject to relevant legal requirements and underwriting authorization, the general purchasing parameters are: the insured is 65 or older, the policy’s death benefit is $250,000 or more, and the policy has been in force at least 2 years.
Unlike applying for life insurance, no medical exams or extensive interviews are required. The underwriting process involves only paperwork, such as your life insurance policy and in-force ledger as well as your medical records, which are necessary to verify the specifics of your insurance and health. Furthermore, there are no appraisal, application or processing fees.
Large portfolios of life policies are purchased by institutional investors seeking predictable non-market correlated returns based on the future value of policy proceeds. In 2006, corporate money managers invested $10-$15 billion in life settlements4 -- more money than in the previous seven years combined -- because they are increasingly interested in purchasing pools of life policies to diversify their portfolios into alternative investments. 
Get Your Deal Done
Every day, retiring business owners frustrated by inadequate purchasing offers for their firms unknowingly discard valuable capital assets by cash surrendering and lapsing their no longer needed business life policies. Selling these hidden business assets can be the answer to easily getting your deal done. 

Rhona Sacks, an attorney and business coach, is the founder and president of Legal Life Settlements, a mergers and acquisitions advisory company specializing in helping retiring business owners extract maximum value from their hidden business assets. Legal Life Settlements is the only firm in the life settlement industry exclusively dedicated to serving the unique needs of exiting entrepreneurs. For more information or to receive a copy of the article, “10 Tips for Optimizing Your Life,” please call (650) 581-1596 or visit

1.  “Is Your Business Worth What You Think It Is?” Deloitte & Touche LLP – Canada, 2006
2.  Small Business Administration, 2003
3.  222 U.S. 149 (1911)
4.  A.M. Best Company, Inc., 2006

© 2008 Rhona Sacks. All rights reserved.

Quick Rinse - News From Around The World

Dirty Laundry Dumped In Northern California

MARYSVILLE, Calif. — Dirty laundry dumped on a highway in northern California stopped traffic and closed the roadway. The laundry, from an area medical center, was dumped when the driver of the big-rig transporting the laundry fell asleep at the wheel. The trailer jackknifed when the driver realized he’d drifted onto the shoulder and he tried to steer back onto the highway