Laundromat Resource › Forums › Laundromats › Determining the selling price of a laundromat

last updated by Jason Dodge 5 years ago
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    • March 12, 2021 at 5:05 pm #4661
      Corey Kane
      Participant

        I am interested in a laundromat for sale. However the high price (7X Adj. Net Income), per the broker is justified because of the equipment purchased over the last six years. Wondering how much the equipment can factor into the price? Appreciate any insight. Thanks

      • March 14, 2021 at 7:20 am #4673
        Jason Dodge
        Participant

          The equipment can be a big factor in the multiple. 7 does seem high but I really have no idea what market you’re in, what condition the store is in, what the competition is like or how competitive the buyer market is for laundromats in your area.

          If a location has old equipment I am going to lower the multiple because I have to buy new equipment. If the location has new equipment I will raise the multiple because equipment is super expensive and has value.

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