A sample laundromat deal
An illustrative card-payment laundromat with wash-and-fold service, $400,000 in revenue, a 37.5% SDE margin and machines averaging 7 years old. Multiples and margins are based on 2026 laundromat transaction data from The Deal Flow Source.
| Purchase price (3.5x SDE) | $525,000 |
| Seller's discretionary earnings (SDE) | $150,000 |
| Total project cost (with closing costs and working capital) | $550,000 |
| SBA 7(a) loan (90%) | $495,000 |
| Seller note on full standby (5%) | $27,500 |
| Your cash (5%) | $27,500 |
| Annual SBA payments (9.75%, 10 years) | $77,678 |
| Left for you after debt service | $72,322 |
Run this deal in the analyzer →Illustrative. Rate assumes prime (6.75% in mid-2026) + 3%, the SBA maximum for loans over $350,000.
Reading a laundromat P&L
The same sample business, from reported profit to SDE. Healthy laundromats run utilities at 20 to 30% of revenue and rent at 8 to 14%. Verify both against the actual bills and lease.
| Revenue (wash, dry, wash-and-fold) | $400,000 |
| Utilities (water, gas, electric) | ($100,000) |
| Rent | ($48,000) |
| Attendant and wash-and-fold wages | ($52,000) |
| Repairs, insurance, depreciation, card fees and other | ($92,000) |
| Reported net profit | $108,000 |
| + Depreciation | $28,000 |
| + One-time boiler repair | $8,000 |
| + Owner's personal vehicle | $6,000 |
| Seller's discretionary earnings | $150,000 |
Add-back to reject: a seller adding back attendant wages because "family covers the shifts for free." You will pay someone to do that work.
What to verify in due diligence
- Revenue against water bills. Water usage is the one number a seller cannot easily fake.
- Age and condition of every machine. A store of 15-year-old machines is a six-figure expense waiting for you.
- The lease. A laundromat cannot move. You want a long lease with renewal options.
- Utilities above 35% of revenue. Usually a leak, a failing water heater or an inefficient dryer fleet.
- Commercial accounts without written contracts. If they live on a handshake with the seller, they are transition risk, not recurring revenue.
10 questions to ask the seller
- Can I see 24 months of water and gas bills?
- How old is each machine, and what was replaced recently?
- How many years remain on the lease, with what options?
- What share of revenue is wash-and-fold or commercial accounts?
- How is cash collected, counted and deposited?
- Who covers attendant shifts today, and at what pay?
- What did you spend on repairs each of the last 3 years?
- Are card or app payments installed, and what do they cost?
- Any planned rent increases or landlord issues?
- Why are you selling now?
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Michael Freedman
Florida licensed business broker. 14+ years buying and selling businesses, 1,000+ evaluated, $100M+ in deals closed and advised on.
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