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Buying a laundromat. How do you value it? Is it based on a % of sales? What should the owner benefit yield be

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Steven St
World Business Partners, Inc
Los Angeles County, CA

Very few laundromats are going to have verifiable books and records i.e. tax returns or audited financial records.

To get a good average of what a mat is doing you have to spend time in the mat and get an average usage rate. The good things about mats is they are not as seasonal as some other type businesses. The people who do laundry once a week will most likely be back again in a week or two.

Once you have a firm grip on how much the machines are making then you can start to calculate in all the other expenses.

The owners benefit can be based on a number a factors like age of the business, location, how long the owner has owned the business, how much they are willing to help you, etc. Owner's benefit will be the hardest number to come up with because there is no set rule because of all the different factors that you have to take into account.

Plus everything these guys said below me.

Hope this helps.

Apr 24, 2009
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You have to go by yearly net x min.3 to 6 year it depents on rent,age of washers and dryers.or you can go by total gross for 1 year x min.$1.oo to 2.00 again all depents on good lease and age of the laundry.Most important is water and gas bill plus watch the traffic ..

Apr 24, 2009
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The BAF Group LLC

Laudromats are one of the toughest businesses to value, because normally the Revenue is not all reported, by far. You can either pay on the basis of Revenue, which the Seller will probably not want if he is not reporting a lot of the income, or on a $/machine basis. This latter strategy is most frequently used, in my experience.

Apr 18, 2009

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