Valuing a Laundromat that comes with Building/Real Estate

[Slobodan Pejic]

Hello everyone,

I am currently looking at acquiring a laundromat that comes with the real estate/building included. I just wanted to get everyone’s thoughts/opinions on how you would go about valuing that business. Would you value the laundromat based on Seller Earnings separately (adjusting for a market rate lease) and then value the real estate building separately in order to come up with the price you’d be willing to pay? What is the industry standard when it comes to valuing a laundromat that comes with real estate? I am asking because I would prefer not to pay the full market price for the building itself and pay for the laundromat separately as well since i think the value of the two are so intertwined and I am primarily focused on paying for cash flow. How would you go about thin/king whether to acquire the building or to potentially just acquires the business and attempt to negotiate a lease?

Thanks!

[ethan mason]

When valuing a laundromat that includes real estate, it’s essential to consider both components separately while recognizing their interconnected value. Typically, the business is valued based on Seller Earnings with an adjusted market lease, while the property itself is assessed at market value. However, since you are primarily focused on cash flow, negotiating a deal that reflects the synergy between the two is key. Structuring the purchase strategically, such as acquiring the business first and then securing an option to buy the property later, might provide financial flexibility. If you’re looking for further insights on property valuation and investment strategies, you can explore https://global.properties/ for expert guidance. Understanding the broader real estate market can help ensure that your investment aligns with long-term profitability and sustainability.

[Author]

Posts