The questions of numbers.

[keifin]

I am starting to look at mats for sale in my area of South Florida (just looking but taking my time to purchase). What I need to know what what to look at as far as the financial figures go. I see a lot of posts about the turns per day, gross, net, expenses, etc. I know that this is just as important as locatin, location, locaion. What I am looking for is either a formula or can anyone provide guidance on how to desolve the numbers to get a more accurate number of income and expense. Also a side question, on an average day what is the average number of machines a customer would use at one time? Just curious if anyone ever noticed.

Many Thanks,
Keith

[Kitty]

Assess the utility use per equipment.

[Fred50]

If you provide a list of specific questions, feel free to post them and we would be happy to answer. General questions usually get no response.

As far as how many machines an individual customer uses on a typical visit ?- as few as possible!

[pete f]

quite honestly no one here is going to give much in the way of hard core numbers. Why would they? That is information they have learned over the years and paid dearly to find out. I know someone in S. Florida who might act as a consultant for you. I don't know what he would charge, but he has been in the business for some time. I would think a fee of around 3-5k would be realistic to get you up to speed and help you from making a big mistake. There is sort of a formula I have seen over the years that appears to work well. I have posted bits and pieces of it over time here.

[Anonymous]

If I understand your question, I can offer the approach I used to recently enter this business. Take it for what its worth.....cause only time will tell if it works for me........

1) Define all investment variables -
Maximum store price, available equity, targeted return on investment, cash on cash return, and then speak to some lendors

2) Visit each mat alot. Get numbers from the owner / broker on the ones that interest you.

3) Analyze each one in a consistant fashion; in my case using a 10 year cash flow to see whether investment objectives are being met. Check with your preferred lendor for debt coverage ratios and other variables you'll have to deal with.

4) Spend every living moment networking with mat owners, suppliers, repair firms, this board, anyone who can offer their experience to assess seller representations, or growth / expense assumptions you may be making in assessing the mat.

5) If you get serious about a mat get all utility bills, sales records, tax returns, repair bills, financial statments the seller will provide. Then use the turn per day & utility consumption formulas to see whether the seller's numbers can be justified.

6) If all this stuff works out, start negotiating so you might buy at a price that meets your original investment objectives.

7) Try to talk yourself out of it.........if you can't and it seems like a good investment of your time and money GO FOR IT.

8) Keep networking and learn everything you can, because for a "simple" business there's alot of stuff you would never think of.


Good luck,

[Laundry_king]

This is very useful If you have more please do chime in
thanks