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That’s when the SBA office shared that if they were attempting to find funding for a laundromat deal that had a dry cleaning element, they would need to do a two-phased assessment to determine the environmental risk of the property.Īfter SBA completed the first phase of their assessment, they found that it was unlikely that a dry cleaner had been on the property previously, that it may have just been a rumor. Immediately after getting the news, their loan agent tried to secure a loan from a second bank, but it was another no. During the bank’s initial due diligence process, they discovered that there may have also been a dry cleaning service on the property at some point, so the bank backed out.

Paul and Mary went to their bank and applied for an SBA loan to fund their second laundromat deal. What their process looked like for an SBA loan In general, you can expect to see a return on revenue of anywhere from 5-6x the equipment cost for newer machines, and 3-6x for machines that are a bit older like the ones on this deal. Paul and Mary ended up offering $100k for the business and $190k for the laundromat property and came in at a total deal cost of around $290k all-in.Īs far as the equipment goes, the laundry machines were all working properly, but they were older models that were about ten years old and had been around since 2012.Ĭommercial-grade laundry machines tend to have a pretty good shelf life, so this was a huge value add for the overall deal. All in, this deal was looking like $325k for the asking price. The laundromat owner had originally asked for $125k for the business, and his mother (who still held the note on the property), was looking for $200k for the property. The owner had also listed their reported income after expenses at around $12k per year, making the overall annual revenue closer to $27k. When Paul called up the original owner, he learned that this laundromat was making about $300 per week from the coin-operated laundry machines (about $15k per year). He was also sort of lukewarm about selling it. The laundromat business had been passed down to the current owner from his mother, but he was no longer interested in running it. The owner was also a generational entrepreneur, which is usually the case for about 55% of all small businesses. What’s interesting about this opportunity is that it was an off-market deal-meaning that the deal was no longer listed as for sale or available on any local listings or websites like BizBuySell. That’s when they passed the torch over to Paul and Mary. But because of a conflict of interest, their salesperson wasn’t eligible to approach the business to buy it, gather information or do due diligence, or even make a deal. Paul and Mary discovered their second laundromat after their salesperson, who normally scopes out deals on their behalf, was initially interested in buying it. Let’s get into it… Here’s how this laundromat deal went down

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If you’re new to the world of Unconventional Acquisitions, we’re here to show you how to invest in boring businesses (just like laundromats), so you can grow your wealth, find financial freedom, and start adding cash flow to your investments on day one through M&A. Paul and Mary have already acquired a laundromat, and the deal they’re about to close on will be their second laundromat, and it’s just 20 miles away from their first location. We can handle repairs and mending of damaged clothing, including missing button replacement.This week, we’re breaking down a laundromat deal that two of our UA masterminders, Paul and Mary MacIntosh, are in the process of adding to their portfolio. ▶ Small Alterations (Repairs and Mending) From couch covers to drapery, we can help freshen up your home as well as your wardrobe. You should refresh your household linens at least once a year.

Our laundry pros have been in the business for decades and we'll make sure your everyday clothes are cleaned, dried and folded so you can tackle another day (now fresher than ever).Ī wedding dress is an expensive garment that holds a lot of great memories, and properly preserving your dress or gown will help keep those memories intact. The weekend is for enjoying life, not laundry. We will ensure that all of your delicates and garments that need special care will be handled neatly and responsibly. Our dry cleaning partners are the best in the business, so you know that you clothes will come back clean and wrinkle-free. Our goal at Press is to be the best laundry and dry cleaning provider near you so that you can permanently check laundry off your to-do list for good.