I’m a rookie to laundromats but have been looking at buying a business or laundromats for about 9 months at this point. I’ve done a couple small real estate deals and looking at whats next.
A thought for both of you is to google the term “clawbacks”. Perhaps you have the seller finance some of the purchase and in exchange not only do they get interest paid from you but they HAVE an interest in the business. What you get in exchange are defined revenue points that the business must hit, if they miss those marks, then the seller forgives a previously agreed upon portion of your principal owed to them. Bam, they get their price if all is well and returns to pre-covid numbers, you get your number if covid continues to rear its ugly head.
The key to this clause is ensuring they hold enough principal debt that you can knock that amount off if revenue benchmarks aren’t hit. Also, this could be tricky in a coin operation and will require a substantial amount of rapport between buyer and seller to establish a serious level of trust.
I’m not an attorney…. so talk to one 🙂
Good luck, hope this helps in some way!