Laundromat Acquistions

intermediary profile

November 29, 2022

by an intermediary from McMaster University - DeGroote School of Business in Toronto, ON, Canada

Anyone in here have experience with acquiring Laundromats? Looking at purchasing one locally in Ontario, Canada. Would like to hear feedback on what to look out for and if it is a good start to acquiring additional laundromats outside my geo area. Thx

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commentor profile
Reply by a professional
from The University of Texas at Austin in Austin, TX, USA
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I started down the path, but hit pause on that industry. Although there is an owner that may sell to me later since we have a relationship. This 3-part course is really helpful: https://youtu.be/y3iBEqRwwys He also have a calculator that shows a lot of the important details. Good industry for recession & essential businesses. Wash & fold services are increasing margins. Pick up with wash & fold adds complexity but also margins. That link is a great starting point & he also has a ton of great resources.
commentor profile
Reply by a professional
from University of Southern California in North Palm Beach, FL, USA
Don’t pay for skim. Skimming is prevalent in some fields. (Especially Laundromats) When recasting profit and budgeting cash flow, it’s not a best practice to include the seller’s admission of income not reported to revenue or income taxing authorities. The seller effectively received part of his price in the form of taxes not paid. He lied to the government. Would he lie to you?

I’ve worked on several deals, and advised clients to avoid most. Pay careful attention to what kind of people own the Laundromats within the region you’re shopping.

Taxing authorities pay close attention to Laundromats.
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