Hi everyone,
I’m new to the laundromat business and currently searching for my first location in the Tampa Bay area. I recently came across an Asset Sale for a closed laundromat that piqued my interest. There are no financial records they are willing to share. Here’s what I know so far about the equipment and its condition:
• Washers: 3 small, 4 medium, 2 large
• Dryers: 10 medium, 4 large (7 of these dryers need motor replacements due to storm-related flooding).
The repair estimate for the bottom dryers is $8,000 ($6,000 for parts and $2,000 for labor).
Since I’m new to the industry, I’d really appreciate some advice to help me evaluate this opportunity:
1. What additional information should I request from the seller? Should I ask for things like utility bills, detailed maintenance records, age of the equipment, or anything else specific?
2. How should I value this laundromat? Considering it’s closed and has some equipment needing repairs, are there any valuation methods or benchmarks I should follow?
3. What red flags or key considerations should I keep in mind, especially given the flooding history?
I want to make an informed decision, and your input would be invaluable. Thank you for taking the time to help a newbie navigate this process!
Looking forward to your thoughts!
Best regards,
Dale
.
