This $900K Laundromat / Coin Laundry Is Quietly Overpriced
The math doesn't work at this price. Here's why the numbers fall apart.
This is a laundromat / coin laundry business listed at $900,000, generating $509,487 in annual revenue and $213,684 in seller's discretionary earnings. At a 4.21x cash flow multiple, the asking price sits above the industry average of 3.00x for laundromat / coin laundry businesses. The profit margin is 42%, above the 41% industry average.
We ran this deal through the DealScore Pro Bulletproof Calculator to see how it holds up across all five scoring criteria. Here is the full breakdown.
Deal Snapshot
The deal snapshot tells a concerning story. Revenue of $509,487 with a 42% margin means the business is generating real cash flow, not just top-line vanity. The 4.21x multiple is on the higher side relative to the industry average.
Financing Overview
Using the standard 80/10/10 SBA deal structure (80% SBA 7(a) loan, 10% seller financing, 10% buyer down payment), here is what this acquisition looks like when financed.
Why the Numbers Matter
The headline number most buyers fixate on is the asking price. But the asking price alone tells you almost nothing about whether a deal is worth doing. What matters is what happens after you finance it.
The post-debt cash flow of $76,221 per year is the real number. That is what you take home after every loan payment, every month, for the life of the loan. On a $90,000 cash investment, that is a modest return, and it is near the $100K minimum threshold that the Bulletproof standard requires.
The DSCR of 1.55x means the business generates $1.55 for every $1 of annual debt payment. SBA lenders require a minimum of 1.25x. The Bulletproof standard requires 2.0x. This deal clears the bank minimum but falls short of the Bulletproof target, leaving you with a thinner safety margin.
The stress test is where many deals that look good on paper fall apart. We model a 20% drop in revenue and check whether the business can still cover all debt obligations. This deal fails. A 20% revenue decline would leave the business unable to cover its debt payments, which is a serious risk in a financed acquisition.
Industry Context
📈 How This Deal Compares to the Laundromat / Coin Laundry Industry
Laundromat / Coin Laundry is one of the more stable acquisition targets. Demand tends to be recurring and local, and the skill requirements are well-defined. Lenders see laundromat / coin laundry as a relatively safer bet, with an SBA default rate of 4.1% versus the 16.8% all-industry average.
The laundromat / coin laundry industry carries a lower-than-average SBA default rate at 4.1%, compared to the all-industry average of 16.8%. The financial metrics on this deal raise concerns that would give most lenders pause.
Strengths and Risks
✓ What Works
- Adequate working capital reserves
⚠ Watch Out For
- DSCR of 1.55x is below the safety threshold
- Purchase multiple of 4.21x is significantly overpriced
- Post-debt cash flow of $76,221 is below the $100K minimum
- Fails the 20% revenue decline stress test
- Key-person risk: verify the current owner's role in daily operations
- Lease terms and renewal risk
Who This Deal Is For
Best fit for:
Owner-operators with industry experience or management background who want a business that cash flows from day one.
First-time buyers looking for a straightforward acquisition with manageable fundamentals.
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Frequently Asked Questions
Is $900,000 a fair price for a laundromat / coin laundry business?
At 4.21x seller's discretionary earnings, this asking price is above the industry average multiple of 3.00x for laundromat / coin laundry businesses. Deals priced below 2.50x are generally considered favorable for buyers, while anything above 3.70x starts to look expensive.
What is a good profit margin for a laundromat / coin laundry business?
The industry average profit margin for laundromat / coin laundry businesses is approximately 41%. This listing operates at a 42% margin, which is above average and suggests the business is managing costs effectively. Margins above 36% are generally considered healthy in the laundromat / coin laundry industry.
Can I buy a laundromat / coin laundry business with an SBA loan?
Yes. Laundromat / Coin Laundry businesses are commonly financed through SBA 7(a) loans using an 80/10/10 structure: 80% SBA loan, 10% seller financing, and 10% buyer down payment. For this $900,000 deal, that means approximately $90,000 in cash at closing. SBA lenders require a minimum DSCR of 1.25x, but conservative buyers target 2.0x or higher. This deal's 1.55x DSCR clears the bank minimum but falls short of the conservative target.
How much do laundromat / coin laundry business owners actually make?
Owner earnings vary widely based on revenue, pricing, and operational involvement. This laundromat / coin laundry business generates $213,684 in seller's discretionary earnings (SDE) before debt service. After SBA financing under the 80/10/10 structure, the buyer would take home approximately $76,221 per year. That post-debt figure is the number that actually matters for a financed acquisition, because it reflects what ends up in your pocket after every loan payment is made.