I looked at a laundromat small business for sale (business + real estate) in this example analysis. As you will see, the numbers don't look great but there could be some caveats in order to find some route to a feasible operation.
Here's a pre-built financial model for laundromat startups to work from and here is my deal analysis service if you have a deal that needs reviewed.
Bottom line, the purchase price was $2,950,000 and the SDE was $172,668. That is a 17x SDE multiple. I personally would not commit capital to such a project unless there was a way to triple the SDE within 3 years and/or get the price down to a 5 to 6x SDE multiple.
The other thing that may be an option is buying just the business without the real estate. For that to work, the rent you would be required to pay still needs to work with the other deal metrics. Your initial equity required would go down and the debt service would drop, but if the rent is more than your net operating income there's going to be problems.
I'd have to dig more into the actual financial data, historicals, and just understand the deal more before I could explain further if there is potential.
In this default laundromat deal analyzing template, there are options to show added services like WDF (wash, dry, fold) and commercial services. I couldn't get a ton of improvement on the current deal even with aggressive assumptions for those two additional lines of service.
If you have ideas on how this deal may make sense at that purchase price, email me and I'd love to hear: [email protected]
