Things to Consider when Selling a Laundromat

There are dozens of factors that figure into the selling price of a Laundromat. Among the items that one should keep in mind are:

Where is the Location - This will be a very important factor. Laundromats are popular in low income areas and colleges. Other factors to consider are the local utilities and their rates, zoning, etc.

Net income - This one is obvious. Every buyer will want to know what to expect when buying your Coin Laundry as an investment.

Current Economic Environment - You will be able to get a premium in times of general economic growth as opposed to economic slowdowns and recessions. People tend to reduce the loads they wash in times of economic stress.

Lease Terms - Time remaining on the lease, rent increases, options to renew, etc. will affect the price in the end. The less time remaining on the lease, the lower the price you will be able to get.

Revenue and General Records - The better your books, expenses and tax receipts have been kept to prove the health of your operation, the better.

Competition - Generally speaking, there is an optimal population per Laundromat. You have to assess how many competitors you have within a mile radius and compare that to the population of the area.

Condition of Laundry Equipment and Store - Age of the washers and dryers will tell if they need to be replaced or repaired. Buyers will also be looking at plumbing, water heater, water tank, general store conditions.

Terms of the sale - Financing or Cash? obviously, a higher asking price will take place when financing is an option.

Growth potential - Is there room for improvement in your operations that would lead to higher revenues and income? if so, that should factor into the asking price.

Sources: Laundromat123.com