January 31, 2022 at 2:09 am #14640
I recently got some info on a laundromat for sale from a broker in my area. He gave me the address and a simple break down of the income. Here is what he gave me:
Total Expenses 93800
Now obviously with these numbers the laundromat looks good but these are very basic number. The asking price is also very reasonable. However i probably will not pursue this laundromat because of a couple factors.
Location- Its in a very rough neighborhood with alot of nicer laundromats near by. It is also kind of hidden in a side street neighborhood with no real parking etc.
There are some other reasons but that definitely a big one.
My question is do you think its worth it to ask for more info on the location from the broker just to better learn how to fully evaluate laundromats? Keep in mind i dont want the broker to think i am just stringing him along. Also does asking for utility bills, the lease, machine make and model, etc constitute me needing to formally enter a “due diligence phase”? If that makes sense. I basically want to window shop this business but dont want the broker to feel duped by me. Maybe i am over thinking this.
February 1, 2022 at 10:08 am #14748Jordan BerryKeymaster
You generally aren’t going to be able to get too many more details/documents until you have an accepted offer. You can ask, just don’t be surprised if they decline to give you more details until you make an offer. You’re not the first window shopper 🙂 With that said, I always recommend practicing your analysis and getting familiar with what to look for and with the process.
February 3, 2022 at 6:05 pm #14799
Can I assume I will need to put up some earnest money with my offer in order to get additional info?
February 1, 2022 at 2:14 pm #14756
Thanks Jordan. Its funny because it seems so backwards compared to how you buy anything else.
May 4, 2022 at 5:50 am #15626David TiseoParticipant
From my recent experience both the broker and owner want to give as little information on the business without an offer being made. What gets me is I do not know how you can actually make a fair, reasonable offer without at least knowing the age of machines and the utilities for the past 12 months. Jordan’s book made me feel better about just making a best guess offer next time and then really attacking the hard information during the due diligence phase. The offer is non binding and at no cost so if they still do not want to provide the utility bills, etc. after the offer is made well then they are hiding something and it’s time to move on. It’s a fine line between being excited to invest in the business and making the right decision to avoid the problems that Jordan spoke about from his experiences.
May 6, 2022 at 8:08 am #15653
Thanks David. Its sad how shady everyone is in this process but I guess that’s the game.
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