Home Forums Financing 2584 Square Foot Laundromat

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    Hello:

    I have been looking into getting in the laundromat industry over the past two months and met with a broker to look at potential businesses to buy. The one that I am interested is approx 2600 square feet. This project is a redevelopment of an existing store. The free-standing building site meets all store requirements for visibility, signage, parking, and demographics. The interior of the store needs to be thoroughly cleaned and painted and requires a new equipment package.

    This is a premium location with apartment buildings across the street and next door which do not have machines in or on the property. The laundromat has 0 website and does not even show up on google so it is all word of mouth which is astonishing.

    2020 p&L income was 153k and netted 65k
    2021 Q1&2 income was 65k net 20k

    you can see in the reports the store is suffering due to the lack of keeping up with the store. It will need about 85% new equipment which the broker/distributor gave me a break down for around 530k. The owner wants 195k for the business which is negotiable. Do these numbers sound about right? The equipment was a bit of a sticker shock.

    I figure using 2020 numbers a multiple of 3x of net business would put me around $180 but averaging 2021 would be around $120 so my offer could be somewhere in the middle.

    • This topic was modified 5 months, 3 weeks ago by Alvin Espino.
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