Valuation Methods

What are my options?

When it comes to determining the value of your laundromat, several valuation methods can be applied. We’ll work with you to identify the most appropriate approach for your specific situation.

The valuation method often depends on the specific circumstances of your laundromat and your goals to complete a sale. Valuation methods can include: income-based valuations, asset-based valuations, market-based valuations, replacement-cost valuation or a combination of multiple methods. In every case, we always use fair and transparent metrics to value your laundromat which will be shared with you in detail.

Income-based

With this option, our primary valuation is based on your current income and expenses which gives us an excellent indication of future cash flow potential.

Multiple of Discretionary Earnings: We’ll assess your business’s cash flow and apply an industry-specific multiple, typically ranging from 2.16x to 4.23x.

Discounted Cash Flow (DCF): This approach considers your laundromat’s projected future earnings, providing a comprehensive valuation based on long-term potential.

Most Accurate

Asset-based

This approach is often used when comprehensive income and expense records are not available. We’ll evaluate your laundromat’s tangible and intangible assets:

Brand Recognition and Customer Loyalty: We’ll factor in the intangible assets that make your business unique

Machinery and Equipment: The condition and age of your washers and dryers significantly impact value.

Real Estate: If you own the property, this can substantially increase your laundromat’s worth.

Cost Driven

Market-based

Typically used in very competitive markets where factors like location and population supersede other metrics. Our experts will analyze recent sales of comparable laundromats and reliably establish value using:

EBITDA Multiples: We’ll typically consider multiples ranging from 2.44x to 4.85x EBITDA. Available income and expense statements will improve accuracy.

Revenue Multiples: Laundromats typically sell for 1.19x to 1.78x annual revenue.

Location Specific

Factors Affecting Your Laundromat’s Value

Several key elements can influence your laundromat’s valuation:

Location and Lease Terms: Prime locations and favorable, long-term leases enhance value.
Equipment Condition: Well-maintained, modern machines command higher valuations.
Financial Performance: Consistent, growing revenues and profits are highly attractive.
Additional Services: Value-added offerings like wash & fold, pick-up & delivery or on-site vending can boost your valuation.

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