Updated 5 months ago on . Most recent reply
Evaluating Laundromat Deals
In the laundromat deals I've been apart of; the converation seems to revolve around business multiples, profit percentages, and owner involvement levels.
But I think it's more important to ask yourself some questions as a buyer:
1) What will it take to get this place where I want it?
2) What is the actual scope of work needed to continue this level of operations or improve operations?
The seller usually provides a p&l but that's only a snapshot of revenue currently.
You need to complete a scope assessment. This will give you an idea of future needs...where you will be operating once the deal closes.
From my experience, scope looks very different depending on location. So an honest assessment of future needs is required to correctly asses whether a deal is viable with your current operations plan.
Curious to hear from others who have been through this, Did you evaluate future scope? If so, what factors do you weigh most heavily? Did it affect whether you pursued the deal?