Hello everyone,
I am currently looking at acquiring a laundromat that comes with the real estate/building included. I just wanted to get everyone’s thoughts/opinions on how you would go about valuing that business. Would you value the laundromat based on Seller Earnings separately (adjusting for a market rate lease) and then value the real estate building separately in order to come up with the price you’d be willing to pay? What is the industry standard when it comes to valuing a laundromat that comes with real estate? I am asking because I would prefer not to pay the full market price for the building itself and pay for the laundromat separately as well since i think the value of the two are so intertwined and I am primarily focused on paying for cash flow. How would you go about thin/king whether to acquire the building or to potentially just acquires the business and attempt to negotiate a lease?
Thanks!
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