Purchase Price Multiplier

[Randy Brubaker]

Hello All,

I have been out of touch with the forums for a while and am getting back into the swing of buying my first Laundromat. I am wondering whether the multiplier of 3.5 to 5 times cash flow is still relevant or if it has changed in this economy.

Any thoughts would be greatly appreciated.

Randy

[Jason Dodge]

It is going up in some markets. This can be a stable industry and people are taking notice more since the pandemic. I
have heard of some pricing as high as 7 or 8. That would be a really nice store though.

[Zachary Boyd]

Interesting Jason. Wonder if it makes sense to go above 5 x though?

[Randy Brubaker]

Thanks Jason

[Author]

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